What is a soft credit inquiry

 In today's digital world, allowing financial transactions and credit checks has become normal. Whenever you take out a loan, apply for a credit card, or look at a financial product, your credit history is pulled up. There are two types of credit checks: hard inquiry and soft inquiry. This article will focus on soft credit inquiry, and how it affects your financial circumstances.

A soft credit inquiry is the process of accessing your credit report without affecting your credit score. It is non-intrusive, and is mainly used for an employment background verification and pre-approved offers.

When does a soft inquiry take place?

When you check your own credit score

When an employer does a background check

When financial institutions send you a pre-approved offer

When your existing lenders check on your accounts

Difference from a Hard Inquiry:

Soft inquiries will not affect your credit score, and will not be permanent on your credit report. A hard inquiry appears on your credit report, and will cause your score to drop slightly.

Benefits of Soft Inquiries:

Soft inquiries benefit you by allowing you to continuously monitor your financial health, spot fraud and identify irregularities, maintain privacy, and plan financially. You will also allow your employer and lenders to make a credit decision on your financial responsibility without affecting your credit score.

Conclusion:

Soft inquiries can be considered