Hard Pull vs. Soft Pull on Credit Report / Credit Score - (How Hard Inquiry & Soft Inquiry Affect U)

hey I'm Anna Jessica from prom on today

I'm in this video we are going to talk

about hard pulse vs. soft polls also

known as hard inquiries versus soft

inquiries on your credit report what is

the difference between them how does

each one affect your credit but before

we do that I'm gonna ask you to please

subscribe to this YouTube channel if

you've not already and if you have

already I thank you for doing so so if

you are someone who is building or

rebuilding your credit the idea of a

hard pull versus a soft poll or a hard

inquiry versus a soft inquiry could

matter to you if you are really counting

every single point on your credit score

if you're someone with a longer credit

history a higher credit score you might

not really care all that much about a

hard inquiry versus a soft inquiry

because you are doing well enough that

each individual point isn't that big a

deal but if you're building or

rebuilding the hard poll versus the soft

poll can make a difference especially if

you were someone I think who is

rebuilding and you may be going through

a process where you are trying to get

credit and maybe having a little bit of

difficulty getting there so let's start

with a hard pull also known as a hard

inquiry a hard pull is done when you

request a bank or other lender look at

your application and give you either a

decision on an application or give you

an offer of a loan with very specific

interest rate numbers so it is you

asking them to do that so in order to do

that they need to look at your credit

report and see exactly what has gone on

so they want to look at your credit

score but then they're also going to

look at some specific things in terms of

how many other inquiries you have had

how long your credit history is and all

of those sorts of things so you're

asking them to take sort of a deep dive

on you and when that happens that is a

hard pull so after the banks or other

lenders have checked with the credit

reporting agencies TransUnion or

experience or Equifax or maybe all of

them that hard inquiry is going to go

into the history of your credit report

and so the way credit scoring models

work is those credit inquiries those

hard pulls factor negatively in your

credit score the good news is they don't

factor very highly and they don't factor

for very long so if you have a hard pull

so you went after a new credit card it

could affect you as little as maybe

three to five points if you have a

shorter credit history or maybe a bad

credit history it could be a little more

maybe up to ten points but you have if

you have a single hard pull that's not

necessarily going to hurt you very much

now if you have many hard pulls over a

short period of time it could hurt you

the good news is those hard pulls do go

away fairly rapidly so if you applied

for a credit card today and had a hard

pull it would go on your credit report

it would stay on your credit report and

be part of that credit score calculation

for the next year after that year was up

it would still be on the credit report

so someone did sort of a deep dive on

you they could see it but it no longer

would be a factor in the actual credit

score the actual number that you look at

so it doesn't really last very long so

you don't have to worry so much about

the hard polls unless you do a lot of

them in a very short period of time now

one of the things that can happen with

hard pulls especially if you are some of

those maybe had some credit problems in

the past is that if you go after credit

you could get denied for credit but you

still have that hard pull so you don't

get the satisfaction of being approved

for something new a new credit card or a

new loan but you still get that damage

to your credit score and if you go to

one lender and they say no and then you

go to a second lender and they say no

and you go to a third lender and they

say no you're getting ding ding ding

you're gonna lose those points over and

over again and none of them have

actually said yes to you so you're not

getting the credit card you're not

getting the loan so that can be a point

where people get themselves into some

trouble they lose a good chunk off of

their credit score without actually

getting the thing that they were going

after and we'll talk about sort of what

to do with that situation in a minute

but first let's talk about what a soft

pull or a soft inquiry is a soft pull is

when a bank or a lender basically wants

to market to you and they check your

credit but only in sort of a vague way a

cursory way to see if you are someone

that might be right for a particular

product so maybe they look at your

credit score or maybe they look at your

income or where you live and then they

send something in the mail to you saying

hey maybe you're interested in this

credit card when they do that that is a

soft poll sort of a vague look at your


and then they mark it - you didn't ask

for it and so it does not hurt your

credit score whatsoever so it's a soft

poll where a heart inquiry does hurt

your credit score a soft poll does not

and that makes sense because you did not

ask for the loan you didn't ask to fill

out an application or anything they just

looked at your credit history a little

bit and then sent you something to try

to mark it to you now well that might

sound fairly straightforward in some

cases it's hard to know if you're

getting a hard pull or a soft pull for

example let's say you were interested to

know what credit cards from Discover you

might qualify for so you went to their

website and use their pre qualification

or pre-approval tool gave them some

information about yourself and then they

told you a list of products that they

think that you could qualify for so is

that a soft poll or is that a hard poll

well it's actually a soft poll in that

case because you didn't ask them to

approve you for a specific card you just

said here's kind of some of my

statistics what do you think I would

qualify for and they would tell you

based on what they know based on their

history with other people with similar

statistics to yours here are the cards

that they generally get approved for

that doesn't mean you are approved it

just means that's generally who gets

approved now if you go the next step and

you say okay well that card looks great

I want to apply and they ask for more

information from you then at that point

when you say yes I want the card I want

you to you know say yes or no to me I

want to know what my interest rate is

going to be on that card all of those

things that's when the hard pull happens

so they've gone from this sort of high

level place of yeah your statistics are

similar to now we're gonna look at you

very specifically so then they're gonna

go further they're gonna look at how

many other credit cards have you applied

for how much debt do you have on those

other credit cards a lot of more

specific things that maybe they didn't

do in that pre-approval or that

pre-qualification process so you start

out with the soft pull when you're just

asking it but then when you actually

apply that's your heart pull and they're

probably some instances where it doesn't

even occur to you that a hard pull or a

soft pull has come into play say you

have a credit card that offers you a

free credit score every month or every

three months well they have to go to one

of the credit bureaus TransUnion

Experian or equity

and get that free credit score for you

and so every time they do that that is a

pull it is a soft poll because of the

fact that you are not asking for credit

they are not giving you a new loan or

giving you a new credit card but they

are still checking your credit report

checking your credit score in order to

give that to you so that is a soft poll

and it doesn't hurt you now sometimes

whether you have a hard inquiry or a

soft inquiry could depend on what bank

you are dealing with so some banks if

you have a prior relationship with them

if you apply for a new credit card even

though they are gonna do that sort of

deeper dive on you they're going to

treat it as a soft poll because they

already have a lot of the information

about you from your own track record

with them so American Express in

particular is known to oftentimes use

only a soft poll if you already have an

American Express card and you apply for

another one in other cases with other

banks they may have done a hard inquiry

you may already have a credit card with

them but if you come back to them and

you want another credit card they're

gonna hit you again with another hard

inquiry same thing with credit line

increases some credit card companies if

you already have that relationship

they're gonna do a soft poll they're

gonna look and make sure nothing's

changed drastically in your credit

report and they'll give it to you and

you're not gonna have any hit to your

credit score you're gonna get that soft

pull with other banks they are gonna do

a hard inquiry they're gonna treat you

almost as if you are a whole new

cardholder and they're gonna do that

full inquiry and you are going to get

docked a little bit on your credit score

one other wrinkle on how the hard pulls

can affect you when you apply for a new

credit card or an auto loan or a

mortgage that bank or other lender can

decide how many of the credit bureaus

TransUnion Equifax or Experian they want

to pull from so when we say pull your

credit report they have the option to

pull from just one of those or they

could pull from two of them or they

could pull from all three of them so if

you have I don't know say American

Express pulls from Equifax so if

American Express pulls from Equifax that

is going to ding your credit report and

your credit score a little bit with

Equifax but it's not going to have any

impact on TransUnion and Experian

because they did not pull from them so

if you only get pulled from one that

scores gonna be a little worse with that

credit reporting agency and that's why

you sometimes will see that you'll have

a different credit score in fact ulam

will almost always see that you have a

different credit score between the three

credit bureaus even though they're

usually fairly in line with each other

so that's another thing that happens

some of the credit card companies some

of the auto loan or mortgage loan

lenders might pull from all three some

of them may only pull from one and so

then your credit scores may be a little

worse with the one that they have

actually pulled from when you do that

new application and some people that are

really watching their credit scores hate

it when a credit card company or a loan

company pulls from all three of the

agencies because then they know they're

getting dinged three times with each one

of them if they only pull from one they

know that credit score is going to go

down but the other ones are going to

remain a little bit higher Capital One

is known to usually pull from all three

which makes some sense because Capital

One often lends to people whose credit

scores are a little bit lower so they

probably want to make sure that they

check and make sure there aren't any

glaring red flags within any of the

agencies but that also is something that

upsets people that apply sometimes for

Capital One cards because they know

they're going to get that ding on all

three scores with TransUnion and

Experian and Equifax so I said earlier

that sometimes if you are trying to

build or rebuild your credit you could

be getting turned down repeatedly and

getting hard inquiries on your credit

report over and over again and could put

you in a bad place where your credit

score is actually going down but you're

not getting any loan or credit card on

the other end to at least make you feel

like it was worth the hit to your credit

score so that is the time that I would

tell you to use some what I talked about

earlier which is the potential for pre

qualifications or pre-approval so on the

credit card and two examples are Capital

One and discover where you can go in and

at least on a high level they can look

at you and tell you what cards you

should be approved for and if you go and

you do one of those pre-qualifications

or pre approvals and they tell you that

you're not eligible for anything well

then you know you probably shouldn't

apply and not take that you know hit to

your credit score if they tell you that

you probably are going to be approved

well then that gives you a lot more

confidence that you will be able to


for that card now it's no guarantee you

could go in and they could say oh well

you know what you applied for 12 other

credit cards over the last year we're

not going to give you another one we

didn't realize that when we did the

pre-approval because we didn't look that

deep into your history so it's not a

guarantee that you're going to be

approved but when you use those

pre-approvals those pre qualifications

and you do only a soft poll in order to

get there you can have a much better

idea of whether you're probably going to

get approved or not and if even those

pre approvals and pre-qualifications

aren't getting you any joy that's when I

would say you probably should look at a

secured credit card where you put down a

security deposit in order to get a

credit card in order to build or rebuild

your credit now you could even be turned

down for a secured credit card but most

people unless have a really terrible

credit history are not going to get

turned down for most secured credit

cards and so with those you put it down

a security deposit you get a credit card

that you use just like any other you

make your payments each month and if you

do it well over time you're gonna build

your credit score and then hopefully

eventually you're going to get to a

place where you qualify for more

unsecured credit that does not require

you to put down a security deposit in

order to get it we've done a lot of

other videos on secured credit cards if

you want to take a look at those if you

feel like that's the direction you need

to go so the hard pull is when you want

a firm commitment on a new credit card

or a loan the soft pull is when they are

getting some information on you but they

are not giving you a concrete offer of

credit if you have any other questions

put them in the comments section below

otherwise I thank you for watching and

as always please go to proud money comm

where we do credit card views we talk

personal finance we talk deals with all

sorts of other fun stuff too thank you

for watching bang