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OverviewWhat is a Credit Check?Soft vs. HardImpact to Credit ScoreGet Pre-approved
When you're navigating the world of finances, credit checks are a key component. Whether you're borrowing money, renting a home, starting utility services, or even applying for a job, understanding the differences between hard and soft credit pulls can empower you to make smarter decisions.

What Is a Credit Check?

A credit check, or credit inquiry, is when someone reviews your credit history to assess your financial reliability. This history—reported by credit bureaus—includes information like your payment habits, outstanding debts, and how well you manage credit.

Credit checks are often required for:

  • Loan applications (e.g., mortgages, car loans, or personal loans)
  • Rental approvals
  • Utility services or insurance quotes
  • Pre-employment background checks

Soft vs. Hard Credit Pulls

Soft Credit Pulls

Soft pulls are credit checks that do not impact your credit score. These typically happen when:

  • You check your own credit.
  • Lenders or credit card companies pre-qualify you for offers.
  • Employers or insurance companies perform background checks.
  • Eligible streamline refinance loans.

    Soft pulls appear on your credit record but are only visible to you and have no effect on your credit score.

    Hard Credit Pulls

    A hard pull occurs when a lender, landlord, or financial institution checks your credit as part of an application process. Examples include:

    • Applying for a mortgage, rental home, or credit card.
    • Requesting a personal or car loan.

    Hard inquiries appear on your credit report for up to two years. They may temporarily lower your credit score, signaling to lenders that you could be taking on new debt.

    How Credit Pulls Affect Your Score

    Only hard credit pulls impact your score, usually causing a slight, temporary decrease. While a single hard pull is unlikely to prevent you from being approved for credit, multiple hard pulls in a short period can compound this effect.

    Most credit scoring models treat hard pulls for the same type of loan (e.g., mortgage or car loan shopping) within a short timeframe as a single inquiry, so it's wise to consolidate applications when possible.

    To protect your credit score:

    • Limit the number of hard inquiries.
    • Monitor your credit regularly to ensure accuracy.
    • Spread out credit applications to avoid signaling financial strain.

    Staying informed about your credit history helps you avoid surprises and stay prepared for major financial decisions. Regular monitoring ensures you can catch errors, prevent identity theft, and keep your financial health on track.

      CapCenter Makes It Simple

      At CapCenter, getting pre-approved is quick, hassle-free, and typically requires just a soft credit pull—so you can explore your options without impacting your credit score. Our experienced team is dedicated to delivering unbeatable service and significant savings, whether you're buying your dream home or refinancing to save even more.

      Don’t wait—find out what you can afford today! Get pre-approved in minutes or connect with one of our mortgage experts to start your journey.