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.
They're also used by companies you already have a relationship with, helping them to complete background checks. In addition, a soft credit check is completed when you check your own credit score and report. Although they involve a review of your credit report, soft credit searches won't impact your credit score.
Like hard inquiries, soft inquiries remain on your credit reports for two years. However, because they're not related to an application for credit or a loan decision, they aren't associated with greater repayment risk and, therefore, have no effect on your credit score.
Soft checks normally stay on your credit file for 12 months. But they may not show up on your file at all, as they don't affect your credit score. It's worth noting that their visibility can depend on who the credit provider is.
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.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
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.
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
Can lenders see soft pulls? Lenders do not have access to soft pulls, and these inquiries do not appear in your credit report. Soft pulls are typically only visible to you.
Only you can see all the soft inquiries on your credit report. Users of the same product or in the same industry can see soft inquiries that other users can't see. For instance, insurance companies can see other insurance soft inquiries on your credit report, but they can't see other types of soft inquiries.
Your payment history is one of the most important credit scoring factors and can have the biggest impact on your scores. Having a long history of on-time payments is best for your credit scores, while missing a payment could hurt them. The effects of missing payments can also increase the longer a bill goes unpaid.
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.
Unauthorized Credit Inquiries
While some inquiries, such as those related to pre-approved credit offers, are considered “soft” inquiries and do not affect your credit score, “hard” inquiries from actual credit applications can impact your score.
Credit Karma allows you to check your credit report and score for free, without affecting your score. The service doesn't hurt your credit score because it counts as a self-initiated inquiry, which is a soft credit inquiry.
Crucially, soft searches aren't visible to companies – so they have no impact on your credit score or any future credit applications you might make. Only you can see them on your report and it doesn't matter how many there are.
What is the highest credit score possible? To start off: No, it's not possible to have a 900 credit score in the United States. In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850.
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.
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.
But, just how accurate are Credit Karma scores? They may differ by 20 to 25 points, and in some cases even more. When Credit Karma users see their credit score details, they are viewing a VantageScore, not the FICO score that the majority of lenders use.
Late or missed payments can cause your credit score to decline. The impact can vary depending on your credit score — the higher your score, the more likely you are to see a steep drop.
According to the Fair Credit Reporting Act (FCRA), negative items can appear on your credit report for up to 7 years (and possibly more). These include items such as debt collections and late payments. The time frame begins from the original date of the delinquency (the date of the missed payment).
Because of this financial reality, people with poor credit seeking ways to improve it may consider hiring a third-party credit repair company. While it may seem like a good idea to pay someone to fix your credit reports, there is nothing a credit repair company can do for you that you can't do yourself for free.
You're not obligated to pay, though, and in most cases, time-barred debts no longer appear on your credit report, as credit reporting agencies generally drop unpaid debts after seven years from the date of the original delinquency.