Do I Need to Unfreeze My Credit for a Soft Pull?

Credit reports are a comprehensive record of an individual’s borrowing and repayment history. They contain details that creditors, lenders, and other entities review to assess financial responsibility. Understanding how credit data is accessed is important for managing financial standing and protecting personal information.

Understanding Credit Access Types

Accessing credit information occurs through two methods: soft inquiries and hard inquiries. A soft inquiry, or soft pull, happens when a company reviews a credit report without a new credit application. These inquiries do not impact credit scores and can occur even without an application. Examples include checking one’s own credit score, receiving pre-approved credit offers, or during certain background checks.

A hard inquiry, or hard pull, occurs when a lender checks a credit report for a lending decision, typically when an individual applies for new credit. This inquiry requires permission and can temporarily lower credit scores. Hard inquiries are common for applications like mortgages, auto loans, or new credit cards. They remain on a credit report for up to two years, though their impact on scores usually lessens after 12 months.

The Purpose of a Credit Freeze

A credit freeze, also called a security freeze, restricts access to an individual’s credit report at the three major credit bureaus: Experian, TransUnion, and Equifax. Its purpose is to prevent new credit accounts from being opened fraudulently. By freezing credit, bureaus will not release reports to most creditors, making it harder for identity thieves. This measure is free to place and lift and does not negatively affect credit scores.

Credit Freezes and Soft Pulls

A credit freeze generally does not block soft inquiries. Soft pulls are for informational purposes or pre-approvals and do not indicate an application for new credit, which a freeze aims to prevent. If a credit report is frozen, an individual can still check their own credit score or receive pre-approved offers without lifting the freeze.

Soft inquiries do not require explicit permission like hard inquiries, and they are not visible to other lenders. The nature of a soft pull, which doesn’t impact credit scores, aligns with a credit freeze’s purpose to prevent fraudulent new account openings. Maintaining a credit freeze offers protection against identity theft without impeding these less impactful credit checks.

Instances of Soft Credit Inquiries

Soft credit inquiries occur in various routine financial and background check scenarios. When individuals check their own credit score or report through a credit monitoring service, it results in a soft inquiry. Receiving pre-qualified or pre-approved offers for credit cards or loans often involves a soft pull.

Background checks by potential employers or for insurance quotes may utilize soft inquiries. Utility companies or landlords sometimes perform soft pulls when an individual applies for service or a rental. These instances allow entities to assess creditworthiness without affecting the individual’s credit score.