Confusion about Soft Pull vs. Hard Pull

[Anonymous]

This is what I am confused about:

Everything I have read about Soft Credit checks indicates that it shows the exact same report as a Hard Credit check.

It's basically like pulling your own report.

Why this is confusing to me. If it shows the same information and you can generate a fico score from what you view, why doesn't every credit card lender use a soft pull method? What exactly is gained by running a soft pull to prequalify you vs. running the hard credit check to make a final decision.

To me, that is like saying, "Hey I am not going to give you food unless I see you haven't eaten in 3 days! A MRI shows you have no food in your stomach so I will say that I'll probably give you a sandwich."

Then a surgeon opens my stomach and finds no food in my stomach but says, "No, I'm not going to give you a sandwich after all, even though I'm confirming what the MRI shows!"

"THEN WHY DID YOU OPEN MY STOMACH IN THE FIRST PLACE?"

[FireMedic1]

Welcome @Anonymous 

A soft credit check shows the same information as a hard inquiry. This includes your loans and lines of credit as well as their payment history and any collections accounts, tax liens or other public records in your name. A soft credit check does not hurt your credit because it happens when you review your own credit report you review your own credit report or a creditor does so for regular account maintenance or to pre-screen you pre-screen you for a credit card.

[Anonymous]

Right, it shows the exact same information.

So why hard pull anybody?

Let me phrase it another way. If a soft credit check shows the same information as a hard credit check, why doesn't every lender just pull a soft credit check to qualify you?

[simplynoir]

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@Anonymous wrote:

Right, it shows the exact same information.

So why hard pull anybody?

Let me phrase it another way. If a soft credit check shows the same information as a hard credit check, why doesn't every lender just pull a soft credit check to qualify you?

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Because a hard pull shows the actually attempt to get credit from the bank/lender i.e. pressing submit after filling out an application. This is mostly true for any applications where it will show a new account on your reports. It shows other financial institutions that "hey, they might not have had been approved but they sure did try" when they see the HPs. I know that's weird when some lenders have SP rules regarding CLI requests for instance. Some banks don't need a HP for a customer to ask, sometimes YMMV and others it's not negotiable to request an increase without one. Just depends on the bank really in that case

[SouthJamaica]

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@Anonymous wrote:

Right, it shows the exact same information.

So why hard pull anybody?

Let me phrase it another way. If a soft credit check shows the same information as a hard credit check, why doesn't every lender just pull a soft credit check to qualify you?

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It's my understanding that a hard pull gives more detailed information.

[FinStar]

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@SouthJamaica wrote:

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@Anonymous wrote:

Right, it shows the exact same information.

So why hard pull anybody?

Let me phrase it another way. If a soft credit check shows the same information as a hard credit check, why doesn't every lender just pull a soft credit check to qualify you?

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It's my understanding that a hard pull gives more detailed information.

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No, both yield the same detailed data.

[jasonbourne84]

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@Anonymous wrote:

Right, it shows the exact same information.

So why hard pull anybody?

Let me phrase it another way. If a soft credit check shows the same information as a hard credit check, why doesn't every lender just pull a soft credit check to qualify you?

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Because the whole point is so that lenders know when you are actively seeking credit versus when other lenders are simply trying to court you. An HP is a signal to other lenders: "Be aware, this person actively pursued this kind of credit on this date."