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Hard VS Soft Credit Inquiries

When applying for funding, a lender will initiate a hard or soft credit pull. Find out what this means and how it will impact your credit score.

    Jason Vissers
  • Last updated onUpdated

  • Erica Seppala
  • REVIEWED BY

    Erica Seppala

    Editor & Senior Staff Writer

Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Key Takeaways
  1. Soft credit pulls, often used in preliminary loan applications, do not impact your credit score.
  2. Hard pulls, which occur when a lender is close to offering you credit, can decrease your score by up to five points and are visible on your credit report for two years.
  3. While hard inquiries are necessary for loan approval, too many can hurt your credit score.
Jason Vissers

Jason Vissers

Expert Contributor at Merchant Maverick
Jason has been writing about small business software platforms, services, and financing since 2015. Jason’s expertise has been featured in Yahoo Finance, Time/NextAdvisor, Home Business Magazine, CreditCards.com, GoBankingRates, TheLadders.com, and other publications. He has a bachelor’s degree in Political Science from San Diego State University and currently lives in Philadelphia, Pennsylvania.
Jason Vissers
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Jason Vissers

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Find Funding for Any Credit Level

BusinessLoans.com


Visit Site

Explore a wide range of business loan options at BusinessLoans.com. With no minimum credit score requirement, find the perfect funding solution for your needs. Get Started.