A lender has to verify your credit when you seek a loan. But the lender’s inquiry on your credit report may not always lower your score. One of the types of credit checks is a soft pull check, and it is entirely risk-free. Your credit score isn’t affected by it at all. Besides, it gives the lenders a rough idea of the applicant’s credit health, which they use in deciding the offer.
Most people are terrified when they hear the term “credit check”, but this one is not harmful. This guide will walk you through the process of a soft pull check, the reasons for its usage by the lenders and the ways for you to reap its benefits.
What Is a Soft Pull?
A soft pull is a credit check that does not negatively impact your credit rating. It is also known as a no-impact credit inquiry. Lenders utilise it to gather your basic credit information. This helps them to determine if you might qualify for a loan.
A soft credit score review presents only skeletal details. It does not reveal all that a full check can disclose. But the limited data is adequate for lenders to throw out a tentative loan offer.
Why Do Lenders Use Soft Pulls?
Lenders consider a soft pull as a means to prevent the customer’s credit score from being affected. It serves as a risk-free approach to get the loan process going. They apply it for,
- Fast screening
- Checking whether the customer is eligible for a loan beforehand
- Offering pre-approved loans
- Basic risk evaluation
This is helpful for customers, too. A soft check loan approval keeps your score safe. You can explore loan options without fear.
3. What Soft Pull Reveals?
A soft pull reveals less than a hard pull but still provides enough information to the lender for decision-making on moving forward.
The following is a straightforward table illustrating what a soft pull contains.
| Soft Pull Shows | Soft Pull Does NOT Show |
| Basic credit score | Full credit report |
| Your credit age | All past loan details |
| Credit usage | All account history |
| Public records | Hard inquiry list |
This is why a no-impact credit inquiry is considered very safe.
When Does a Soft Pull Happen?
A soft pull check can happen in numerous areas,
- When you look at your own score
- In case a bank issues a pre-approved offer
- When a creditor performs a credit check for approval
- When apps like Olyv show early loan offers
Olyv uses a soft credit score review to match you with the right loan options. This makes the process simple and stress-free.
Soft Pull vs Hard Pull
The effect of a hard pull on your credit score is negative. On the contrary, the effect of a soft pull is neutral. Knowing the difference is crucial for your security during the loan transaction.
| Feature | Soft Pull | Hard Pull |
| Score impact | No impact | The score may drop |
| Purpose | Pre-check | Final approval |
| Who sees it | Only you | Lenders and you |
| Frequency allowed | Unlimited | Limited |
This helps you understand why a soft check loan approval is better in the beginning.
Benefits of a Soft Pull
A soft pull grants you numerous benefits,
- No score drop
Your credit remains safe since it is a no-impact credit inquiry.
- Helpful in early approval
Credit checks for lenders’ pre-approval can be done with minimal information.
- Easy and quick
Soft pulls are instant.
- Helps in offer comparison
Soft pulls are used by platforms like Olyv to present several offers without any negative effect.
Does a Soft Pull Have an Impact on Your Future Loans?
No. A soft pull check never hurts future loans. Your score remains unchanged even if you have numerous soft pulls. Only hard pulls count.
This is the reason soft pulls are valued for initial screening. They also let you know whether you should proceed with a loan application or not.
In What Circumstances Should You Grant a Soft Pull?
A soft pull should be allowed when,
- You are looking into loan options
- You wish to verify your eligibility
- You are interested in pre-approved offers
- You are investigating interest rates
Olyv’s soft check system makes it easy to see the right match for your needs without any risk.
Conclusion
A soft pull is a safe way to begin your loan journey. It does not harm your score. It is only used for basic checks. Lenders use it to do early screening, and platforms like Olyv use it to help match you with the best offers. A soft pull check gives you confidence to explore loans, compare options, and choose what works best for you. It keeps your credit safe while giving you useful information.
