Liza Ellis | October 21, 2022
Summary: A hard credit check occurs when a lender performs a detailed inquiry into your credit history, and it can make your credit score drop. This generally happens when you apply for a loan or a new line of credit. A soft credit check is a less-detailed inquiry into your history, and it does not hurt your score. Protect your credit score from unfair debt collectors with SoloSuit.
Most people have likely heard the term ‘credit check’. It’s a tool used to assess how financially responsible an individual is, determining their creditworthiness. But do you know the difference between a hard and soft credit check, and in what situations each one is likely to occur?
In this post, we’ll provide you with a breakdown of the key differences between hard and soft credit checks, and detail when you can expect them to happen. Understanding this key information will enable you to make better decisions to help take control of your finances—read on for a better financial future.
Simply put, a hard credit check is a more detailed inquiry into your credit history, and it can lower your credit score. However, it’s important to note that the impact is typically small; hard inquiries stay on your report for two years, but they only have an effect on your score for the first 12 months.
If you’re shopping around for a loan or credit card, it’s best to do so within a short period of time, as multiple inquiries within the same category (i.e. mortgage) will only count as one hard inquiry if they occur in a short span of time. So, if you’re considering taking out a loan, be sure to shop around and compare rates before submitting an application.
A soft credit check is a less detailed inquiry, and it doesn't have any effect on your score. Lenders will often do a soft credit check before approving you for a loan or line of credit, in order to get an idea of your creditworthiness. By understanding the difference between these two types of credit checks, you can make more informed choices about when to apply for loans and other forms of credit.
A hard credit check happens when you apply for a loan, a mortgage, a credit card, or anything else that requires borrowing money. It’s carried out by a financial institution, generally a lender, and they will pull your credit report and use the information to decide whether or not to approve your loan.
Let’s take a look at an example.
Example: Jeremy wants to apply for a new credit card with American Express. In order to qualify, the card company must run a hard credit check and investigate his credit history to determine if he will be a trustworthy borrower. Luckily, Jeremy qualifies, but the hard credit check decreases his credit score by about 20 points. After making his card payments on time for the next several months, however, Jeremy’s score increases by even more than he started with.
A soft credit check is also known as a pre-approval check or an inquiry. Soft checks can happen when you check your own credit score, when a business checks your score to see if you're eligible for pre-approval on a loan or credit card, or when a landlord does a background check before renting an apartment to you.
Let’s consider another example.
Example: Jeremy is thinking about applying for a credit card with Synchrony, and he finds out that he can get pre-approved for the card with a soft credit check that won’t hurt his credit score. Synchrony runs the soft check, and Jeremy gets pre-approved. He decides not to open the new line of credit at the moment, and his credit score remains untouched.
Now that you know the difference between hard and soft credit checks, you can be prepared for when they happen. Remember that a hard inquiry can harm your score, and unfortunately it can’t be removed within the two year period since it’s been carried out, so bear this in mind before applying for any lines of credit.
Protect your credit score and respond to debt collectors with SoloSuit.
Having a debt in collections is one of the worst marks you can have on your credit report. It’s not uncommon for creditors and debt collectors to report fraudulent or incorrect information to the credit reporting agencies. When a collector contacts you about a debt you supposedly owe, protect yourself by sending a Debt Validation Letter to formally request that they verify the debt.
If the debt cannot be verified, you’re off the hook. Debt collectors may have already reported the collections account to the credit bureaus, but you can dispute it and have the negative mark removed.
SoloSuit can help you draft a Debt Validation Letter in minutes. All you have to do is respond to a few questions, and you will increase your chances of beating a debt collector almost immediately.
Send a Debt Validation Letter to protect your credit.
Learn more about how a Debt Validation Letter can help you in this video:
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Going to Court for Credit Card Debt — Key Tips
How to Negotiate Credit Card Debts
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
Need more info on statutes of limitations? Read our 50-state guide.
Why do debt collectors block their phone numbers?
How long do debt collectors take to respond to debt validation letters?
What are the biggest debt collector companies in the US?
Is Zombie Debt Still a Problem in 2019?
If a car is repossessed, do I still owe the debt?
Is Portfolio Recovery Associates Legit?
Is There a Judgment Against Me Without my Knowledge?
Should I File Bankruptcy Before or After a Judgment?
What is a default judgment?— What do I do?
Summoned to Court for Medical Bills — What Do I Do?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What is a Stipulated Judgment?
What is the Deadline for a Defendants Answer to Avoid a Default Judgment?
Can a Judgement Creditor Take my Car?
Can I Settle a Debt After Being Served?
Can You Appeal a Default Judgement?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Payday Loans Lawyer?
Do student loans go away after 7 years? — Student Loan Debt Guide
Am I Responsible for My Spouses Medical Debt?
Should I Marry Someone With Debt?
Can a Debt Collector Leave a Voicemail?
How Does Debt Assignment Work?
What Happens If a Defendant Does Not Pay a Judgment?
How Does Debt Assignment Work?
Can You Serve Someone with a Collections Lawsuit at Their Work?
How Many Times Can a Judgment be Renewed in Oklahoma?
Does Debt Consolidation Have Risks?
What Happens If You Avoid Getting Served Court Papers?
Does Student Debt Die With You?
Can Debt Collectors Call You at Work in Texas?
How Much Do You Have to Be in Debt to File for Chapter 7?
What Is the Statute of Limitations on Debt in Washington?
How Long Does a Judgment Last?
Can Private Disability Payments Be Garnished?
Can Debt Collectors Call From Local Numbers?
Does the Fair Credit Reporting Act Work in Florida?
The Truth: Should You Never Pay a Debt Collection Agency?
Should You Communicate with a Debt Collector in Writing or by Telephone?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
Need help managing your finances? Check out these resources.
How to Make a Debt Validation Letter - The Ultimate Guide
How to Make a Motion to Compel Arbitration Without an Attorney
How to Stop Wage Garnishment — Everything You Need to Know
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
Defending Yourself in Court Against a Debt Collector
Tips on you can to file an FDCPA lawsuit against a debt collection agency
Advice on how to answer a summons for debt collection.
Effective strategies for how to get back on track after a debt lawsuit
New Hampshire Statute of Limitations on Debt
Sample Cease and Desist Letter Against Debt Collectors
The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
Arkansas Statute of Limitations on Debt
Youre Drowning in Debt — Heres How to Swim
Help! Im Being Sued by My Debt Collector
How to Make a Motion to Vacate Judgment
How to Answer Summons for Debt Collection in Vermont
North Dakota Statute of Limitations on Debt
ClearPoint Debt Management Review
Indiana Statute of Limitations on Debt
Oregon Eviction Laws - What They Say
CuraDebt Debt Settlement Review
How to Write a Re-Aging Debt Letter
How to Appear in Court by Phone
How to Use the Doctrine of Unclean Hands
Debt Consolidation in Eugene, Oregon
Summoned to Court for Medical Bills? What to Do Next
How to Make a Debt Settlement Agreement
Received a 3-Day Eviction Notice? Heres What to Do
How to Answer a Lawsuit for Debt Collection
Tips for Leaving the Country With Unpaid Credit Card Debt
Kansas Statute of Limitations on Debt Collection
How to File in Small Claims Court in Iowa
How to File a Civil Answer in Kings County Supreme Court
Roseland Associates Debt Consolidation Review
Do Debt Collectors Ever Give Up?
Can They Garnish Your Wages for Credit Card Debt?
How Often Do Credit Card Companies Sue for Non-Payment?
How Long Does a Judgement Last?
How Long Before a Creditor Can Garnish Wages?
How to Beat a Bill Collector in Court