In the process of a loan application, the lender conducts a credit check on you. However, it is important to know that there are two types of credit checks: one is a soft pull, and the other is a hard pull. Most people have mixed feelings regarding the functioning of both types. The reality is that each of them comes with its own advantages, and thus one must know how to use them accordingly. Understanding soft pull vs hard pull gives you the advantage of being able to secure yourself and your credit score while still selecting the proper loan procedure.
What Does a Soft Pull Mean?
A soft pull is a simple credit check that does not harm your score. Lenders use it during the early steps. This is known as a loan approval credit check, and it is very safe.
Soft pulling gives lenders access to your credit score, your profile, and your payment history. That gives them a rough idea of whether you would qualify for a loan or not. A number of apps, such as Olyv, perform soft pulls as a way of presenting pre-offers to you without impacting your credit.
One of the most significant advantages of soft inquiry is that it allows you to compare the loan options without any costs involved.
What Is a Hard Pull?
Compared to a soft pull, a hard pull is an extensive credit check. This is done at the time of a formal loan application. With a hard pull, the lender gets to see your entire report. However, this is a critical factor for lenders. A hard inquiry also hurts your score, though.
This drop is usually small, but it still matters. That is why understanding the hard inquiry’s impact on the score is important for every borrower.
Soft Pull vs Hard Pull: What’s the Difference?
Here is a simple table to make it crystal clear,
| Feature | Soft Pull | Hard Pull |
| Score impact | No impact | Score may drop slightly |
| Purpose | Early screening | Final approval |
| Visibility | Only you | Lenders and you |
| Frequency allowed | Unlimited | Limited |
| Used for | Pre-checks | Full application |
These differences help you understand soft pull vs hard pull quickly and clearly.
When Does a Soft Pull Happen?
Soft pulls occur during,
- Early eligibility checks
- Pre-approved offers
- When you check your own score
- When apps like Olyv show your possible loan matches
Because of soft inquiry benefits, borrowers can explore different lenders without fear.
When Does a Hard Pull Happen?
Hard pulls happen during,
- Final loan application
- Credit card application
- Balance transfer request
Each hard pull becomes part of your credit history. Too many of them may increase the hard inquiry impact on the score.
Which One Is Better for Borrowers?
Most borrowers prefer soft pulls in the early stages. They are safe and stress-free. You can check multiple lenders, compare interest rates, and explore eligibility.
A hard pull is only needed when you decide to go ahead with a loan and complete the final application. So, it is not “bad.” It just needs to be used at the right time.
The best way to understand soft pull vs hard pull is this,
- Soft pull = shopping phase
- Hard pull = buying phase
Both have a role. You simply need to use them wisely.
Pros and Cons of Each Check
| Type | Pros | Cons |
| Soft Pull | No score impact, fast, safe | Shows limited information |
| Hard Pull | Needed for final approval, full report | Can drop score slightly, should be limited |
This helps you compare the credit checks for borrowers clearly and honestly.
How to Stay Safe During Loan Applications
To prevent errors,
- Try not to submit applications to multiple lenders simultaneously
- Monitor your credit score frequently
- Start with soft pulls
- Make hard pulls only when needed
- Rely on secure apps such as Olyv for safe early checks
Olyv’s process begins with a soft pull, which is one of the biggest soft inquiry benefits for users.
Conclusion
Both soft pulls and hard pulls are important during a loan journey. A soft pull is safe and does not harm your score. A hard pull is needed for final approval. When comparing soft pull vs hard pull, remember this: use soft pulls to explore and compare, and use hard pulls only when you are ready to apply.
This simple approach keeps your credit score safe and helps you make better choices as a borrower.
