How Long Does a Soft Pull Stay on Your Credit?
Understand soft credit inquiries: how long they appear on your report, who sees them, and their minimal impact on your financial standing.
Understanding Soft Credit Inquiries
A soft pull, also known as a soft inquiry or soft credit check, occurs when a person or company reviews your credit report without you formally applying for new credit. This type of inquiry differs significantly from a hard inquiry, which happens when you submit an application for a new loan or credit card. Soft inquiries are generally initiated for informational purposes rather than a lending decision. A key distinction is that a soft inquiry can happen without your explicit permission, such as when a credit card issuer prescreens you for a promotional offer. Conversely, a hard inquiry always requires your authorization because it is directly tied to a credit application.
Visibility and Duration of Soft Inquiries
Soft inquiries do appear on your credit report, but their visibility is limited primarily to you when you access your own report. Other lenders or creditors generally cannot see these soft inquiries, which sets them apart from hard inquiries. This limited visibility means that a series of soft pulls will not signal to potential lenders that you are actively seeking new credit.
Soft pulls typically remain on your credit report for a period ranging from one to two years. For instance, promotional inquiries might stay for one year, while other soft inquiries, like those for background checks, could remain for two years. The presence of a soft inquiry on your report does not factor into credit scoring models.
Impact on Your Credit Score
Soft credit inquiries do not affect your credit score. This means you can check your own credit report and score as often as you wish without concern for negative repercussions. The rationale behind this is that soft pulls are not indicative of new credit-seeking behavior or an increased risk profile.
In contrast, hard inquiries can slightly lower your credit score by a few points, although the impact is generally minor and temporary. Credit scoring models view multiple hard inquiries within a short period as a potential sign of higher risk, as it suggests a greater need for new credit. However, soft inquiries do not carry this implication, allowing for routine credit monitoring without penalty.
Common Scenarios for Soft Pulls
Various situations commonly result in a soft credit pull, providing useful information without impacting your credit standing. One frequent scenario is when you check your own credit score or report through a credit monitoring service, your bank, or a credit bureau. Pre-approved credit card or loan offers also involve a soft inquiry, as companies assess your creditworthiness to send targeted solicitations. Additionally, employers often conduct soft pulls as part of background checks for certain job applications. Insurance companies may perform soft credit checks when providing policy quotes, and some rental applications can also involve this type of inquiry.