Soft vs. Hard Credit Checks: Difference?

 

Credit is very important when buying a home.

Lenders run a hard inquiry when you apply for a loan, such as a mortgage or a car loan, or a credit card. They run soft inquiries when they market their products, such as credit cards or personal loans, to you through preapproval offers. Any time you check your own credit score, that’s considered a soft pull as well.

The biggest difference between a hard and soft inquiry is that the hard pull temporarily lowers your credit score and appears on your credit report. Why? Because if you’re applying for a loan, it means you need money, which tells other creditors you might have a higher risk of defaulting on your loans.

What if you see something strange... When to dispute

If you see an unauthorized hard inquiry on your credit report, you have the right to dispute it. Unauthorized inquiries appear when:

-A credit bureau mistakenly adds them to your report

-A fraudster attempts to open accounts in your name

-A lender requests a hard pull without your permission


What we Leaned:

A soft inquiry happens when you receive an offer from a lender, like a pre-approved credit card, or when you check your own credit. It will not affect your credit.

A hard credit inquiry is when a lender checks your credit before approving you for a loan, such as a mortgage or car loan or a credit card you’ve applied for. This will hurt your credit.



Where I come in.

If you are interested in buying a home and you don't have all the cash. You will need a loan. That's not an issue. That's how we buy homes and that's where I come in. I can help. 

Check out my blog for more tips or give me a call 956-588-9811.

Roy Sawyer

956.588.9811

roysawyer@gmail.com