What Are Soft Vs. Hard Credit Checks When You Need a Loan Now?
Soft credit checks focus on personal details such as name, address, and date of birth. There is no effect on one’s credit score like with hard inquiries when you need a loan now. Hard inquiries involve looking at someone’s borrowing history to see if they have defaulted or missed any payments. Hard inquiry requires permission from the borrower and temporarily affects their overall credit score. Repaying the loan on time can minimize this impact.