Soft Credit Inquiry: Definition and What It Is
A soft credit inquiry is a review of a borrower's credit report. It does not affect the credit score and is not visible to other lenders. Soft inquiries occur during pre-qualification checks, when a borrower checks their own credit, and when employers or landlords run background checks. They pull enough information to give a general picture of creditworthiness without triggering the same footprint as a formal application.
In contrast, a hard inquiry occurs when a borrower submits a formal credit application. It is recorded on the credit report, visible to other creditors, and can lower a credit score. Most lenders offer a soft-pull pre-qualification step before a formal application.
Why it Matters
Using soft-pull pre-qualification tools before formally applying to multiple lenders protects the credit score during rate shopping. A borrower who submits five formal applications in a single month triggers five hard inquiries. Depending on the scoring model, that can signal financial strain and lower the score. The same borrower who uses soft-pull pre-qualification first, identifies the best one or two options, and then submits formal applications, keeps the hard inquiry count minimal.
For borrowers with already-damaged credit who are exploring whether they qualify for a refinance, a soft inquiry check is a low-risk way to get a realistic sense of options before committing to a formal application. Yrefy's refinance program is built for borrowers with distressed credit profiles, and the bad credit refinance page covers the qualification process.
Comparison
A soft inquiry and a hard inquiry both pull credit information, but only hard inquiry leaves a mark. Soft inquiries are essentially invisible to everyone but the borrower. They do not affect the score, do not appear to other lenders reviewing the report, and do not count against the borrower in any underwriting decision. When shopping for any loan, using soft-pull pre-qualification before triggering hard inquiries is the straightforward way to get information without lowering a credit score.
