Hard Pull Vs. Soft Pull – Credit Inquiry For Opening A Bank Account

Are you new to banking? Unfamiliar with some of the terminology such as what a Hard Pull Vs. Soft Pull is? Let’s start off with a quick and brief overview of what the difference between a hard pull vs soft pull is and what impact it has on your credit history. The are two types of “pulls” or inquiries: hard and soft. Both types of credit inquiries allow a third party, such as a lender, to oversee your credit history. Soft pulls do not harm your credit score, however, hard pulls do.

Hard Pull Vs. Soft Pull

A hard pull or soft pull occurs when you open a new checking and/or savings account from banks that offer sign-up promotions. Some inquiries are either soft or hard. In the case that you rent a car, apply to rent an apartment, sign up for cable service, internet service, opening an account at a financial institution, or when an individual just needs to verify your identity, you may incur either a hard inquiry/pull or a soft inquiry/pull. If you are unsure if whether or not you are going to incur a hard pull or soft pull, you can always ask the creditor or even check with one of the credit bureaus.

Be careful not to incur multiple hard inquiries/pulls on your credit report. If you have an outstanding credit history, a points may not be much of a big deal, but you should reconsider if you have a borderline credit history.

What Is A Hard Inquiry (Hard Pull)?

• A hard pull is an inquiry that occurs when a lender or credit card issuer checks your credit report to make a lending decision. Hard pulls can slightly lower your credit score and will typically stay on your report for two years. Hard pulls commonly take place when you’re applying for a mortgage, credit card, or a loan and you usually have to authorize it in order for a hard pull to take place.
• In some cases when you open a checking and/or savings account, a hard pull may incur.
• Usual Hard Pull Scenarios: applying for a credit card, student loan, auto loan, mortgage loan, personal/business loan, etc.

What Is A Soft Inquiry (Soft Pull)?

• A soft pull is an inquiry that occurs when a person or company checks your credit report as a background check (much like when you check your credit score or when you get approved for a loan from a mortgage lender). Soft pulls may occur without your permission but does not affect your credit score in any way.
• Usual Soft Pull Scenarios: Checking your own credit score, employer background check, credit card pre-qualification offers, obtaining an insurance policy, getting cable/internet/utility accounts, etc.

Disclaimer: The information below may change over time, so BankDealGuy make no guarantees at the time of your application. The data below has been cited from the experiences of other consumers online from trusted forums and websites when opening accounts for bank deals, bonuses, and promotions.