{"id":1801,"date":"2023-02-11T11:55:23","date_gmt":"2023-02-11T06:25:23","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1801"},"modified":"2023-04-14T12:59:19","modified_gmt":"2023-04-14T07:29:19","slug":"soft-credit-check-how-does-it-work-and-affect-your-credit","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/soft-credit-check-how-does-it-work-and-affect-your-credit\/","title":{"rendered":"Soft Credit Check: How Does It Work and Affect Your Credit?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f42ba6837f0\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f42ba6837f0\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/soft-credit-check-how-does-it-work-and-affect-your-credit\/#What_Is_a_Soft_Credit_Check\" title=\"What Is a Soft Credit Check?\">What Is a Soft Credit Check?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/soft-credit-check-how-does-it-work-and-affect-your-credit\/#How_Does_a_Soft_Credit_Check_Work\" title=\"How Does a Soft Credit Check Work?\">How Does a Soft Credit Check Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/soft-credit-check-how-does-it-work-and-affect-your-credit\/#Does_a_Soft_Credit_Check_in_the_UK_Impact_Your_Credit\" title=\"Does a Soft Credit Check in the UK\nImpact Your Credit?\">Does a Soft Credit Check in the UK\nImpact Your Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.extramilefinance.uk\/blog\/soft-credit-check-how-does-it-work-and-affect-your-credit\/#Advantages_of_Using_a_Soft_Credit_Check\" title=\"Advantages of Using a Soft Credit\nCheck\">Advantages of Using a Soft Credit\nCheck<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.extramilefinance.uk\/blog\/soft-credit-check-how-does-it-work-and-affect-your-credit\/#Disadvantages_of_Using_a_Soft_Credit_Check\" title=\"Disadvantages of Using a Soft Credit\nCheck\">Disadvantages of Using a Soft Credit\nCheck<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.extramilefinance.uk\/blog\/soft-credit-check-how-does-it-work-and-affect-your-credit\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>UK lenders and borrowers are implementing looser credit checks. A mild\ncredit check won\u2019t damage your score. Checking your credit score too often\ncould hurt it. But people don\u2019t know what a soft credit check is. Many times\nthey confuse it with a hard credit check. So it very important for you to know\nthe difference! You don\u2019t want to mix up the two, doyou?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Soft_Credit_Check\"><\/span>What Is a Soft Credit Check?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A soft credit check does not impact a person\u2019s credit score. Your credit\nscore won\u2019t drop because of this. Soft credit checks are often used to\ndetermine if you are pre-qualified for a loan or another type of financial\ninstrument and to look into your background.<\/p>\n\n\n\n<p>You can look at your credit history with a soft credit check. <\/p>\n\n\n\n<p>If you want to apply for a loan or other type of financial product, it\nmay be in your best interest to do soft credit checks instead of hard inquiries\nfirst so that potential lenders can see how creditworthy you are.<\/p>\n\n\n\n<p>There is also a chance that identity theft or fraud could be found with\nthe help of mild credit checks. A soft credit check is a type of background\ncheck that can be done if something on your credit report seems strange. How\nwill you know that the report has any mistakes or not? Soft credit check can\nalso help with that. &nbsp;Remember that a\nsoft credit check won\u2019t give you a full credit report. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_a_Soft_Credit_Check_Work\"><\/span>How Does a Soft Credit Check Work?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many banks and credit unions now only do soft credit checks when\ndeciding if a customer can get a loan. <\/p>\n\n\n\n<p>It\u2019s use to know about your previous borrowing history! What loans you\ntook and other specific details.This is done by reviewing credit reference\nagency data.<\/p>\n\n\n\n<p>Many UK payday lenders offer mild credit checks. What does this mean?\nThat you can apply for the&nbsp;<a href=\"https:\/\/www.extramilefinance.uk\/loans\/12-month.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>best payday loans\nin the UK<\/strong><\/a>! What\u2019s more? Never will it affect\nyou credit score! <\/p>\n\n\n\n<p>This is particularly useful for individuals who are\nattempting to enhance their credit ratings. Why so? Because it lets them check\ntheir eligibility without harming their credit report in any method. They can\ncheck if they are qualified for the finest payday loans in the UK without\nharming their credit ratings. This is becoming more and more popular as days go\nby. <\/p>\n\n\n\n<p>Lenders are carrying out &#8216;soft credit\nchecks&#8217; regularly now. This kind of query about credit info does not negatively\nimpact your credit history. This is becoming the standard and it&#8217;s great news\nfor you! <\/p>\n\n\n\n<p>This is an actually favorable for\nthose who are wanting to gain access to credit of any type. It allows loan\nproviders to rapidly gain access to and check an individual&#8217;s credit profile.\nNo damage will happen to your credit score!<\/p>\n\n\n\n<p>The details of a credit check (soft)\ncan help lenders determine whether to approve you or not. This permits\ncustomers to gain access to more competitive deals and much better rates. That\ntoo without any compromise to their credit report. It is excellent to see that\nthe market is adjusting and reacting eventually to the consumer&#8217;s requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_a_Soft_Credit_Check_in_the_UK_Impact_Your_Credit\"><\/span>Does a Soft Credit Check in the UK\nImpact Your Credit?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Why is a good credit score important? It shows you are a responsible\nborrower. It tells the lender that you will pay back the loan amount in time. A\nsoft credit check helps the lender understand about your credit history and how\nyou have managed money. You have no reason to be worried about a soft credit\ncheck. May people worry but you can relax because it is just for inquiry\npurposes. <\/p>\n\n\n\n<p>Soft credit checks are often carried out by lenders when you apply for <a href=\"https:\/\/www.extramilefinance.uk\/loans\/without-guarantor.html\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;<strong>loans for bad credit with no guarantor<\/strong>.<\/a>&nbsp;<\/p>\n\n\n\n<p>They might think you\u2019re trying to get more than one loan at the same\ntime. Lenders can better understand how creditworthy you are with the help of\nsoft credit checks. But this doesn\u2019t always mean that your credit score will go\nup.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Using_a_Soft_Credit_Check\"><\/span>Advantages of Using a Soft Credit\nCheck<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A soft credit check checks a borrower\u2019s creditworthiness without\naffecting their score. Wondering why that\u2019s the case? Because a soft credit\ncheck doesn\u2019t have any negative impact like a hard one has!<\/p>\n\n\n\n<p>This lets lenders make good decisions without having to worry about how\ntheir choices will affect the person\u2019s credit score.<\/p>\n\n\n\n<p>Also, soft credit checks are usually done much faster than hard credit\nchecks because they don\u2019t need as much information or proof. This makes them a\ngreat choice for loan providers who need to decide quickly. More and more\nlenders are using soft credit checks to evaluate new borrowers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disadvantages_of_Using_a_Soft_Credit_Check\"><\/span>Disadvantages of Using a Soft Credit\nCheck<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It\u2019s crucial to research a person\u2019s creditworthiness before making a\ndecision. When deciding whether or not to give a loan or credit card, lenders\nand other financial organisations often do what is called a soft credit check.<\/p>\n\n\n\n<p>This kind of credit check does not include a hard credit inquiry. A soft\ncredit check can tell you some basic things about a person\u2019s payment history\nand how much debt they have, but not as much as a hard credit check.<\/p>\n\n\n\n<p>Hard credit checks give more information about a person\u2019s credit history\nand look at it in more depth. These checks show a person\u2019s missed payments,\nbankruptcies, and other information that can help you decide whether or not to\ngive them a loan.<\/p>\n\n\n\n<p>A hard credit check costs more than a soft one. So, it\u2019s essential to\nknow the differences between soft and hard credit checks, as well as the pros\nand cons of each. A soft credit check may be a faster and easier way to\ndetermine if someone is creditworthy, but it doesn\u2019t always give the most\naccurate or up-to-date information.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A soft credit check is a valuable tool for lenders who want to check a\npotential borrower\u2019s creditworthiness. But don\u2019t want to deal with the bad\neffects that could come from a hard credit check.<\/p>\n\n\n\n<p>But it\u2019s important to remember that a soft credit check doesn\u2019t show as\nmuch information as a hard credit check, so it might not be suitable for all\nlending institutions. A soft credit check does not affect your credit score in\nthe United Kingdom.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UK lenders and borrowers are implementing looser credit checks. A mild credit check won\u2019t damage your score. Checking your credit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1804,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,11],"tags":[282,281],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1801"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1801"}],"version-history":[{"count":3,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1801\/revisions"}],"predecessor-version":[{"id":1864,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1801\/revisions\/1864"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1804"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}