Faastrak does a soft credit check using Experian's vantage score model. Learn more about what a soft inquiry is with this article.
We use Experian's VantageScore 4.0 model to pre screen applicants that involve a personal guarantor or owner information. This means that for every application received, each applicant is getting a soft inquiry directly from Experian.
What is a Soft Inquiry?
A soft inquiry is an inquiry whereby a company or individual checks your credit report as part of their background check. It occurs when a lender checks your credit report with or without your permission to know if you qualify for certain offers. They are reviewing your credit report to screen basic credit information for a pre-approval before an offer.
Unlike a hard inquiry, soft inquiry won’t affect your credit scores since they are not connected to a specific credit application.
How Does a Soft Inquiry Work?
When applying for a new loan or credit card, lenders and creditors would want to know whether you are able to effectively manage your debt and credit history. Usually, lenders or credit card issuers will ask for a hard inquiry to check your credit.
A hard inquiry will stay on your credit report for two years, but their impact on your credit scores will only be for a few months.
We are different....we only do a soft pull! These are three common situation or reasons where soft inquiry may occur:
- You want to personally check your own credit report - It is good idea to check your credit report to watch signs of identity theft, errors, and keep track of credit score. You can check your credit report as many times as you want.
- A company checks your credit to see if you qualify for preapproval offers - This happens when a creditor or issuer checks your credit report to pre-approve you for a loan or a credit card.
- An employer checks your credit report - As part of an employer’s screening process, it uses a soft inquiry to check for financial problems that can be a source of problem on the job.
We pre-screen applicants through a soft inquiry instead of a hard inquiry.
Can You See Soft Inquiries on Your Credit Report?
Yes, you can see your soft inquiries on your credit report. Since soft inquiries are listed in a credit report, it can provide creditors and issuers useful information on extending or granting credit.
These inquiries have their own section on the report. It is under the subheading “inquiries or inquiries that do not affect your credit rating.” This portion shall show details of all soft inquiries, including the requester’s name and inquiry date.
To get copies of your credit report, request a copy from Experian, Equifax and TransUnion every 12 months on AnnualCreditReport.com. You may also check your Experian credit report monthly for free on Experian.com.
How Do Soft Inquiries Impact Credit Scores?
A credit score is a numerical representation of the credit worthiness of an individual. It helps creditors and issuers determine possibility of the credit being paid back. To determine the credit scores of an individual, it uses a credit scoring model to help analyze the information in your credit report.
In a soft inquiry, it does not have an impact on an individual’s credit scores. The reason behind this is due to the fact it is not an indicator of a greater risk, hence it will not impact your credit scores.
Soft inquiry is different from hard inquiries since hard inquiries will usually stay in your credit report for two years, and create an effect on your credit scores. The impact is usually small and may last for only a few months. Plus, scoring models only consider hard inquiries from the previous 12 months.
Should You Worry About Soft Inquiries?
Hard inquiries play a minor role in your credit score despite it affecting your score. This shouldn’t stop you from applying a new credit. Soft inquiries are even less worrisome because you could have dozens, or even hundreds, of soft inquiries in your credit reports—and they still won't affect your credit scores.
Your credit scores play an important in your financial standing. Before you apply for a credit, check your credit scores first or build your credit scores. By having a strong credit score, you will improve your chance of getting approved for the financial products you are availing.