Soft Credit Pull

A credit inquiry that does not affect a borrower's credit score. Often used for pre-qualification to give buyers confidence before formally applying.

Brief Definition

A credit inquiry that does not affect a borrower's credit score. Often used for pre-qualification to give buyers confidence before formally applying.

What is a Soft Credit Pull?

A soft credit pull (also called a soft inquiry) is a type of credit check that does not affect the borrower's credit score. It provides the lender with enough information to make an initial credit decision or pre-qualification assessment without leaving a mark on the applicant's credit report that other lenders can see.

Soft Pull vs. Hard Pull

A hard credit pull is the opposite — it's a formal inquiry that appears on the borrower's credit report and can temporarily lower their credit score by a few points. Hard pulls are typically triggered when a borrower formally applies for a loan, credit card, or mortgage. Soft pulls are used for pre-qualification, background checks, and account reviews.

Why Soft Pulls Matter for B2B Financing

Many business owners hesitate to apply for financing because they're concerned about the impact on their credit score. By using soft pulls for initial approval, B2B financing platforms remove this barrier — allowing businesses to see what they qualify for without any risk. This increases application rates and ultimately benefits both borrowers and merchants.

Key Takeaways

Soft credit pulls do not affect the borrower's credit score
They provide enough data for initial credit decisions
Hard pulls appear on credit reports and can lower scores
Soft pulls remove a key barrier to financing applications