If you\u2019ve ever applied for a loan, mortgage or even a mobile phone contract, you\u2019ve probably heard the term credit check. Lenders use these checks to decide whether to approve you for credit \u2013 but not all credit checks work the same way.<\/p>\n\n\n\n
There are two types: soft credit checks and hard credit checks. Understanding the difference can help you protect your credit score<\/a> and make wiser financial moves. Let\u2019s dive in.<\/p>\n\n\n\n <\/p>\n\n\n\n A soft credit check looks at your credit report without affecting your credit score<\/a>. These checks are typically used for things like:<\/p>\n\n\n\n Soft checks aren\u2019t visible to lenders, so they won\u2019t impact any future applications. They simply give a snapshot of your credit history without leaving a mark.<\/p>\n\n\n\n <\/p>\n\n\n\n A hard credit check happens when a lender or financial provider reviews your credit report to make a decision. This usually happens when you:<\/p>\n\n\n\n Hard checks are recorded on your credit report and can slightly lower your credit score, especially if you have several in a short space of time. The impact is usually small and temporary, but it\u2019s worth being mindful of if you\u2019re planning to apply for credit.<\/p>\n\n\n\n <\/p>\n\n\n\n Here\u2019s a quick comparison to help you understand the differences:<\/p>\n\n\n\nWhat\u2019s a soft credit check?<\/strong><\/h2>\n\n\n\n
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What\u2019s a hard credit check?<\/strong><\/h2>\n\n\n\n
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What are the key differences between soft and hard credit checks?<\/strong><\/h2>\n\n\n\n