A soft pull on your credit shows basic personal information, a summary of your credit history, recent inquiries, any public records related to your credit, and sometimes a summary of your credit scores. It does not reveal detailed account-specific information and doesn't affect your credit score.
However, it's crucial to note that soft credit checks do not show defaults, missed payments, or County Court Judgments (CCJs). This makes them a useful tool for individuals and lenders to gauge creditworthiness without affecting the credit score.
Soft inquiries do not affect credit scores and are not visible to potential lenders that may review your credit reports. They are visible to you and will stay on your credit reports for 12 to 24 months, depending on the type. The other type of inquiry is a “hard” inquiry.
A soft inquiry can occur even if you didn't apply for credit. It is primarily used to screen for preapproval offers or for a background check. Credit scores are not impacted by soft credit checks. A hard credit check can temporarily affect your credit score.
Can I 'fail' a soft credit check? Don't worry, you can't 'fail' a soft credit check. With a soft search, you're not actually applying for anything – so it won't result in a lender's decision.
A 700 credit score is considered a good score on the most common credit score range, which runs from 300 to 850. How does your score compare with others? You're within the good credit score range, which runs from 690 to 719.
How long do soft inquiries stay on your credit report? Promotional inquiries can stay on your credit report for one year, while other soft inquiries may stay on your credit report for two years. Only you can see all the soft inquiries on your credit report.
Those with credit scores below 660 may be less likely to qualify for better loan terms. Those with lower scores who fall into the “poor” credit range (generally below 560) are more likely to have difficulty getting credit or qualifying for better loan terms.
Income is not part of your credit report. And while lenders often factor your income into their lending decisions, they'll typically get that information directly from you during the credit application process.
But that doesn't mean your permission is always needed before a credit check — if someone is performing a hard credit check, they have to ask for permission, but if someone is performing a soft credit check, they don't have to ask for permission.
Getting in the best position to pass a credit check
Ensure any bills in your name are paid on time and in full. Check your credit file with the credit reference agencies to make sure the information and data on there is correct and up-to-date. Make sure you are on the tenancy agreement at your current property.
Does a credit freeze prevent soft inquiries? Because a soft inquiry is not necessarily to open a new credit account, a credit freeze usually doesn't prevent soft inquiries. Certain companies (insurance providers, for example) can still look at your credit report, as can your existing creditors.
If you'd like to limit soft inquiries, you can use the website OptOutPrescreen.com to opt out of the prescreening process that companies use to send you offers for items like credit cards, mortgage refinancing and insurance.
A soft inquiry happens whenever you check your credit report, or when a lender checks your credit report without your knowledge or permission. Soft inquiries have no effect on your credit score. Lenders can't even see how many soft inquiries have been made on your credit report.
A soft credit check mortgage preapproval is hard to come by since lenders want a close look at your financial history during this process. A soft credit inquiry does not impact your credit score or require your permission. It is typically done for informational purposes and not for lending decisions.
Common reasons for failing a credit check
Missed or late payments on financial obligations such as mortgages, loans, or credit cards can raise red flags for potential lenders. Defaults on loans signal a serious financial faux pas, indicating a history of unfulfilled commitments.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Unlike hard inquiries, soft inquiries won't affect your credit scores. (They may or may not be recorded in your credit reports, depending on the credit bureau.) Since soft inquiries aren't connected to a specific application for new credit, they're only visible to you when you view your credit reports.
There are two types of credit score inquiries lenders and others (like yourself or your landlord) can make on your credit score: a "hard inquiry" and a "soft inquiry." The difference between the two is that a soft inquiry won't affect your score, but a hard inquiry can shave off some points.
Details of your repayment history, including any missed or late payments. Details of anyone you're financially linked to, for example a spouse or partner that you have joint credit with. Public record information on any County Court Judgements, bankruptcies, and individual voluntary agreements over the past six years.
The minimum credit score needed to buy a house can range from 500 to 700, but will ultimately depend on the type of mortgage loan you're applying for and your lender. While it's possible to get a mortgage with bad credit, you typically need good or exceptional credit to qualify for the best terms.
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
Having a good credit score is just one factor in the approval process. Lenders consider various factors like income, existing debt, and credit history. If your income is insufficient or if you have a history of late payments or high debt, you may still be rejected despite a good score.