What is a soft credit score?
A soft credit score, also known as a soft pull or soft inquiry, is a type of credit score that is used by lenders and creditors to assess the creditworthiness of a borrower without affecting the borrower’s credit score. Unlike a hard credit score, which is used when you apply for a loan or credit card, a soft credit score is typically used during pre-qualification processes or when you check your own credit score. Understanding the difference between the two types of credit scores is crucial for maintaining good credit health and making informed financial decisions.
In this article, we will delve into the concept of a soft credit score, how it is calculated, its purpose, and the implications of having a soft credit score. By the end of this read, you will have a clearer understanding of how soft credit scores can impact your financial life.
