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Confusion about Soft Pull vs. Hard Pull

RetroStorm
New Member

Confusion about Soft Pull vs. Hard Pull

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?"

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Message 1 of 7
6 REPLIES 6
FireMedic1
Super Contributor

Re: Confusion about Soft Pull vs. Hard Pull

Welcome @RetroStorm 

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.






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 7
RetroStorm
New Member

Re: Confusion about Soft Pull vs. Hard Pull

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?

Discover IT: $2500 | American Express BCE: $1700 | Navy FCU Cash Rewards Visa: $900 | Navy FCU Platinum Visa: $6600 | Fidelity Rewards Visa Signature: $7000 | Sony Visa Credit Card - Comenity: $1450 | Toyota Visa Credit Card - Comenity: $2000 | Lowes Home Advantage Credit Card: $1000 | Capital One Platinum: $750 | Capital One Quicksilver: $3000 | Capital One Walmart Rewards: $300 | Nordstrom Card TD Bank: $500 | Firestone Card CFNA: $1000 | Overstock Card - Comenity: $1100 | IKEA Projekt Card - Comenity: $550 | Fingerhut - WebBank: $800 | Care Credit - Synchrony: $4000 | Sam Ash Card - Synchrony: $1500
Message 3 of 7
simplynoir
Community Leader
Super Contributor

Re: Confusion about Soft Pull vs. Hard Pull


@RetroStorm 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?


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

Message 4 of 7
SouthJamaica
Super Contributor

Re: Confusion about Soft Pull vs. Hard Pull


@RetroStorm 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?


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


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 5 of 7
FinStar
Moderator

Re: Confusion about Soft Pull vs. Hard Pull


@SouthJamaica wrote:

@RetroStorm 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?


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


No, both yield the same detailed data.

Message 6 of 7
jasonbourne84
Regular Contributor

Re: Confusion about Soft Pull vs. Hard Pull


@RetroStorm 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?


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."

Message 7 of 7
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