Are you looking to apply for a credit card, but worried about the impact of an inquiry on your credit score? Have no fear! In this Flik Eco article, we'll explore the concept of soft pulls and how they can affect your credit card application process. So, buckle up as we dive into this important and less-known aspect of your credit journey.
Soft Pulls For Credit Cards Table of Contents
Understanding Credit Inquiries
Understanding Credit Inquiries
When applying for a credit card, the issuer usually checks your credit report to assess your creditworthiness. There are two types of credit inquiries:
1. Hard Pull: Also known as a hard inquiry, it occurs when a lender or creditor checks your credit report as a part of their decision-making process. Hard pulls are typically initiated when you apply for a loan, mortgage, or credit card. These inquiries can have a negative impact on your credit score and will remain on your credit report for up to two years.
2. Soft Pull: Also called a soft inquiry, it happens when a lender, creditor, or even yourself check your credit report for informational purposes. Unlike hard pulls, soft pulls do not have an impact on your credit score and are not visible to other lenders or creditors.
Soft Pulls for Credit Cards
When it comes to credit cards, soft pulls play an essential role in allowing you to shop for a card without harming your credit score. Soft pulls are used by credit card issuers in the following scenarios:
- Pre-approval Offers: Credit card issuers often use soft pulls to pre-approve potential customers for their products. By doing so, they provide you with a rough idea of your chances of being approved for a particular card. These pre-approvals are usually sent out via mail or email, or can be found on the issuer's website.
- Checking Your Own Credit: When you access your own credit report or score through free credit monitoring services, a soft inquiry is initiated. This allows you to keep an eye on your credit health without causing any damage to your score.
- Increase in Credit Limit: Some credit card issuers may use a soft pull to review your account when considering a credit limit increase request. However, it's important to verify with your issuer whether they perform a soft or hard inquiry in this circumstance.
Benefits of Soft Pulls for Credit Cards
By considering a soft-pull credit card, you can reap the following benefits:
- No Impact on Credit Score: Since soft inquiries do not affect your credit score, you can worry less about your credit taking a hit when applying for a card.
- Comparison Shopping: With soft pulls, you can shop around and compare different credit card offers without the fear of hurting your credit score. This allows you to make an informed decision on the card that best suits your needs.
Finding Soft Pull Credit Cards
You can identify soft-pull credit cards by looking for cards that advertise "no impact on credit score" or "check your eligibility without affecting your credit score." Additionally, you can browse pre-approval offers on the credit card issuer's website or through third-party comparison tools.
Keep in mind that soft pulls should only be used as a guideline and do not guarantee approval. The final approval decision can still result in a hard pull, which will impact your credit score.
Soft Pulls For Credit Cards Example:
Jane is interested in applying for a new credit card to earn rewards on her everyday purchases. She has a good credit score and wants to keep it that way. Jane does her research and comes across Flik Eco's guide on soft pulls for credit cards. She learns about the benefits of soft inquiries and starts browsing pre-approval offers on various credit card issuers' websites. Jane finds a few cards that interest her and checks her eligibility through a soft pull. After comparing the offers, she confidently applies for a card that suits her needs, knowing that she hasn't damaged her credit score during the process.
Now that you have a better understanding of soft pulls for credit cards, you can confidently start your own credit card search while protecting your credit score. We hope this article has been both informative and engaging, helping you navigate the world of credit card applications. If you found this article helpful, don't forget to share it with friends and explore other valuable guides and resources available right here at Flik Eco!
