Hard Pull vs. Soft Pull: What’s the Difference and Why It Matters for Your Credit?

Understanding how credit inquiries work is essential for anyone looking to apply for credit, whether for a new credit card, a loan, or a mortgage. One of the most overlooked aspects of the credit approval process is the difference between a hard pull and a soft pull. While both involve a review of your credit history, they have different implications for your credit score and financial health.

A hard pull, also known as a hard inquiry, occurs when a lender or financial institution checks your credit report as part of the decision-making process for approving a new credit account. This type of inquiry typically happens when applying for a mortgage, auto loan, personal loan, or traditional credit card. Hard pulls are recorded on your credit report and can slightly lower your credit score. While a single hard inquiry usually has a minimal impact, multiple hard inquiries within a short period can raise red flags for lenders and temporarily lower your score. This is especially important to keep in mind if you are planning to make a significant financial move, such as buying a house or financing a car, where maintaining a strong credit score is crucial.

On the other hand, a soft pull, or soft inquiry, occurs when someone checks your credit without it affecting your score. This could be when you check your own credit report, when a lender pre-qualifies you for an offer, or when an employer conducts a background check. Soft pulls are not visible to other lenders, and they do not impact your credit standing. They are often used for informational purposes rather than as part of a lending decision.

For those who are actively working to improve or establish their credit, avoiding unnecessary hard pulls is an important strategy. A hard inquiry stays on your credit report for about two years, although its impact lessens over time. Limiting hard inquiries by only applying for credit when necessary can help protect your score. However, checking your credit score regularly using a service that conducts soft pulls is a good practice, as it helps you stay informed about your financial status without any negative consequences.

At TomoCredit, we believe in a customer-first approach to credit evaluation. Unlike traditional lenders who often conduct hard pulls during the application process, Tomo only performs soft pulls when assessing applicants for the TomoCredit Card. This means that applying for Tomo will not affect your credit score. We use a customer consent format, which ensures that applicants remain in control of their financial decisions without the risk of unnecessary hard inquiries. Instead of relying solely on credit history, we assess eligibility based on financial behavior, allowing those with limited or no credit history to access a credit-building opportunity without barriers.

For many people, especially those new to credit or rebuilding their financial profile, the difference between a hard and soft pull can determine how they approach new credit opportunities. By understanding these distinctions, individuals can make more informed decisions about when and how to apply for financial products. Tomo’s process ensures that applicants can explore their options without worrying about the impact on their credit score. This approach is particularly beneficial for young professionals, recent immigrants, and those who are credit invisible, as it removes one of the biggest obstacles to accessing financial opportunities.

In a world where creditworthiness plays a crucial role in financial success, being mindful of how credit inquiries affect your score is essential. Whether you are applying for a new credit card, financing a major purchase, or simply checking your credit health, knowing the difference between a hard and soft pull allows you to take control of your financial future. With Tomo’s commitment to using only soft pulls, applicants can confidently take the next step in building their credit without unnecessary setbacks.