11Dec/20

Soft And Hard Pull – What Are They And How Do They Impact Your Credit Score?

In simple terms, a hard pull impacts your credit score, whereas a soft pull doesn’t affect your credit. So, make sure that you understand the differences between both.

You can think of your credit score as a pizza divided into slices of different sizes. There are three large slices representing – your credit utilisation rate, credit history, and on-time payment records. Besides these three large slices, there are other smaller slices as well.

One such slice represents hard inquiries, also known as hard pulls. Every time you apply for new credit – a loan or a credit card – you take a small bite out of this slice. Which, in turn, impacts your credit score, making it drop down by a few points.

But, the question here – how much of an effect do hard inquiries have on your credit? Is there any way to reduce the impact of hard …