Soft Inquiry

AAA

DEFINITION of 'Soft Inquiry'

A credit report check that does not affect an individual's credit score. A soft inquiry, also called a soft pull, occurs when an individual checks his or her own credit report, which she might do to make sure it contains no errors or fraudulent activity or to check her score before applying for a major loan like a mortgage. Credit checks by employers are also treated as soft inquiries and do not affect an individual's credit score.

INVESTOPEDIA EXPLAINS 'Soft Inquiry'

There are two types of credit report inquiries: hard and soft: Hard inquiries, also called hard pulls, occur when an individual applies for credit by filling out a credit card application, applying for a mortgage, applying for an auto loan or any number of other activities. Several of these types of inquiries can sometimes temporarily lower an individual's credit score because the credit bureaus see a consumer's recent applications for new credit as a potential risk factor.

RELATED TERMS
  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Credit Inquiry

    A transaction whereby a bank or other credit-issuing institution ...
  3. FICO 08

    A credit-scoring model introduced in 2009 by the FICO company ...
  4. Account Inquiry

    Any inquiry into an account, whether it be a depositary account ...
  5. Credit History

    A record of a consumer's ability to repay debts and demonstrated ...
  6. Credit Report

    A detailed report of an individual's credit history prepared ...
Related Articles
  1. New Credit Scoring Forgives Small Debt
    Credit & Loans

    New Credit Scoring Forgives Small Debt

  2. 5 Keys To Unlocking A Better Credit ...
    Credit & Loans

    5 Keys To Unlocking A Better Credit ...

  3. The Importance Of Your Credit Rating
    Credit & Loans

    The Importance Of Your Credit Rating

  4. How Credit Cards Affect Your Credit ...
    Credit & Loans

    How Credit Cards Affect Your Credit ...

comments powered by Disqus
Hot Definitions
  1. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  2. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  3. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  4. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  5. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  6. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
Trading Center