Anyone who applies for a financial product—like a loan, credit card, or even renting an apartment—will have to have a soft or hard pull on their credit history. These are called credit checks, credit inquiries, or credit pulls.
You might have some questions about this process, such as:
- What is the difference between a soft pull vs. a hard pull?
- What is a soft credit check / soft pull?
- How does a soft credit check work?
- Do soft credit checks affect credit scores?
Understanding the difference between these checks, particularly soft pulls, is essential for making informed financial decisions while safeguarding your credit score.
In this article, we’ll answer these questions and explore how HomeEQ’s streamlined application process uses only soft pulls, offering a borrower-friendly experience.
What is a soft credit check?
A soft credit check—also known as a soft pull—is a type of credit inquiry that provides a snapshot of your creditworthiness without impacting your credit score.
These inquiries are often used when lenders or companies need to perform a financial background check without requiring your full credit history.
Soft pulls are commonly used in scenarios such as:
- Pre-qualifying for loans or credit cards
- Checking your own credit report
- Employment background checks
- Rental applications
Unlike hard credit checks, soft pulls are typically performed without your explicit authorization.
For example, credit card companies might use a soft pull as part of their pre-approved offer process. However, checking your own credit report also counts as a soft inquiry.
How does a soft credit check work?
When a soft credit check is performed, the inquiry retrieves basic details about your credit profile, such as:
- Credit score
- Existing accounts
- Payment history
- Public records
Because it’s not tied to an active application for credit, a soft pull doesn’t signal to lenders that you’re seeking new debt, which is one of the factors that can influence your credit score during a hard pull.
This makes soft inquiries a safe way to explore financial options without jeopardizing your credit health.
Do soft credit checks affect credit scores?
Folks are always particularly worried about this, so let’s re-emphasize it here: the answer is no.
Soft credit checks don’t affect your credit score because they are not tied to an active request for credit.
Unlike hard pulls, which signal to lenders that you’re seeking new debt, soft pulls are purely informational and are not considered a risk factor in credit scoring models like FICO.
This makes soft pulls an excellent tool for assessing financial options without committing to a formal credit application. By allowing you to explore rates and terms before applying, they provide a low-risk way to make smart financial decisions.
Soft credit check vs. hard credit check
The primary difference between a soft and hard credit check is its purpose and impact. While both involve accessing your credit report, their effects and uses vary significantly.
What is a hard credit check?
A hard credit check—or hard pull—occurs when you apply for almost any type of loan, credit card, or other financial product that requires the lender to make a detailed assessment of your creditworthiness.
Hard pulls are directly linked to credit applications and are recorded on your credit report, where they remain visible to other lenders for up to two years.
Hard credit checks might temporarily lower your credit score, especially if multiple hard inquiries occur within a short period.
This is one of the main reasons HomeEQ won’t do these—so you can breathe easier, knowing our application process won’t hurt your score.
Comparing soft and hard credit checks
| Soft Credit Check | Hard Credit Check |
| No impact on credit score | Can lower credit score slightly |
| Used for pre-qualifications, background checks, and personal inquiries | Used for formal credit applications |
| Does not appear on credit reports accessible to lenders | Appears on credit reports viewed by lenders |
The HomeEQ advantage: soft credit checks for fast and easy applications
Understanding how your credit will be assessed is crucial if you’re considering tapping into your home equity.
HomeEQ’s digital application process stands out because it relies exclusively on soft credit checks, offering significant advantages over traditional lending methods.
How HomeEQ’s process works
When you start an application with HomeEQ, the system performs a soft pull to generate a personalized offer based on your financial details.
This approach means you can explore your loan options without worrying about the impact on your credit score.
Here’s how the process unfolds:
- Simple start: Share basic information about your situation to create an account and receive your personalized offer.
- Push-button process: Complete the fully digital application with streamlined verification for income, credit, and home value.
- Fast funding: Once approved, access your funds in just a few days—no waiting weeks for traditional loan processing.
Benefits of HomeEQ’s soft pull approach
- Protect your credit score: HomeEQ’s reliance on soft pulls means you can pre-qualify and apply with confidence, knowing your credit won’t be affected.
- Quick decisions: With no in-person appraisals or lengthy underwriting, HomeEQ’s digital platform speeds up the loan process.
- Transparency: See your potential rates and terms upfront, making it easier to plan for life’s expenses.
Why choose HomeEQ’s HELOC?
HomeEQ offers a Home Equity Line of Credit (HELOC) designed for convenience and flexibility.
Borrowers can tap into $25k to $350k of their home equity with term options ranging from 5 to 30 years.
Whether you need funds for debt consolidation, home improvement, or personal milestones, HomeEQ’s HELOC provides a competitive solution.
Best of all, HomeEQ’s self-service platform ensures a hassle-free experience:
- No loan officers involved
- No prepayment penalties
- Funds available within days
Explore financial options without risking your credit
With HomeEQ’s commitment to a fully digital, soft-pull-driven application process, you can apply confidently and receive funds quickly without worrying about your credit score.
Take control of your finances today by exploring HomeEQ’s HELOC options.
Ready to apply? Visit HomeEQ right now to find your personalized rate and start your application.
