What is a soft credit check?

Whether you’re applying for a credit card, loan, mortgage, or even a mobile phone contract, your credit history plays a central role.

 One term you’ll often encounter is the soft credit check.

This blog post will explain what a soft credit check is, how it works, why it matters, and how you can use it to your advantage

What is a soft credit check?

A soft credit check, also called a soft search, is a quick, non-intrusive look at certain information on your credit report.

It’s used by companies to get a snapshot of your creditworthiness without leaving any trace that other lenders can see.

Unlike a hard credit check, which is recorded on your credit file and can affect your credit score, a soft credit check is only visible to you and has no impact on your credit score or your ability to get credit in the future.

Key features of a soft credit check:

• Only you can see it on your credit report.
• It does not affect your credit score.
• It’s used for eligibility checks, quotes, and background checks.
• You can have as many soft checks as you like without consequence.

When does a soft credit check happen?

Soft credit checks are used in many everyday situations, including:

• Checking your own credit report.
• Using eligibility checkers for credit cards, loans, or mortgages.
• Getting insurance quotes.
• Identity verification (such as job applications).
• Account management by existing lenders.
• Marketing offers from companies you already use.

Example:
If you want to see which credit cards you’re likely to be approved for, you can use an eligibility checker on a comparison site.

This will run a soft search, showing you your chances of acceptance without affecting your credit score.

What information does a soft credit check show?

A soft credit check gives a high-level overview of your credit history.

Typically, it includes:

• Your personal details (name, address, date of birth).
• A list of current credit accounts (bank accounts, loans, credit cards).
• Repayment history (including missed or late payments).
• Details of anyone you’re financially linked to (such as a spouse).
• Public records (like bankruptcies or county court judgments from the past six years).

While this might sound like a lot, it’s much less detailed than a hard credit check, which is used for actual lending decisions.

Soft vs Hard Credit Checks: The Key Differences

Practical tip:
Always use eligibility checkers that use soft searches before applying for any credit product.

This way, you can see your chances of approval without risking your credit score.

Why are soft credit checks useful?

Soft credit checks are a powerful tool for anyone looking to manage their finances wisely:

• Shop around without risk: You can compare credit cards, loans, and other products without affecting your credit score.
• Monitor your credit health: Regularly checking your own report helps you spot errors or signs of identity fraud early.
• Improve your chances of approval: By using soft checks to see where you’re likely to be accepted, you avoid unnecessary hard checks and potential rejections.

According to the Financial Conduct Authority, the UK’s credit information market is robust, with over 1 in 9 British consumers using open banking as of October 2023, demonstrating how many people are actively monitoring and managing their financial data.

How to use soft credit checks to your advantage

Here are practical, actionable steps you can take to use soft credit checks to your advantage:

1. Check your own credit report

You’re entitled to check your credit report for free with major UK credit reference agencies like Experian, Equifax and TransUnion. This involves a soft check and won’t affect your score.

Action:
Set a reminder to check your credit report every few months. Look for any unfamiliar activity, errors, or signs of fraud.

2. Use eligibility checkers before applying for credit

Before applying for a credit card, loan, or mortgage, use an eligibility checker on a reputable comparison site. They use soft searches to estimate your chances of approval.

Action:
When you’re considering a new credit card or loan, always run an eligibility check first. If your chances are low, work on improving your credit before applying.

3. Compare financial products without risk

Comparison sites and some banks allow you to compare products using soft searches. You can shop around for the best deals without leaving a trace on your credit file.

Action:
When comparing products, look for sites that clearly state they use soft searches. Avoid applying directly to multiple lenders, as this can result in multiple hard checks.

4. Monitor for identity fraud

Checking your own credit report can alert you to attempts to take out credit in your name. If you see a soft search from a company you don’t recognise, investigate further.

Action:
If you spot any suspicious activity, contact the credit reference agency and the company involved immediately.

5. Understand when hard checks will happen

A soft check is not the same as a full application. If you actually apply for credit, a hard check will be performed which is visible to other lenders and can affect your score.

Action:
Limit the number of credit applications you make in a short period. Too many hard checks can suggest to lenders that you’re in financial difficulty.

Example credit check scenarios

Scenario 1: Shopping for a credit card

You want a new credit card with a 0% interest offer. Instead of applying to several banks (which would result in multiple hard checks), you use an eligibility checker on a comparison site.

The checker runs a soft search, showing you which cards you’re likely to be approved for. You apply for the card with the highest approval odds, minimising the risk of rejection and protecting your credit score.

Scenario 2: Renting a Flat

A letting agency tells you they’ll run a credit check. Ask if it’s a soft or hard check. Many agencies use soft searches for initial checks, which won’t affect your score.

If a hard check is required, ensure you’re only applying for properties you’re serious about to avoid unnecessary hard searches.

Scenario 3: Checking for identity fraud

You notice a soft search from a lender you don’t recognise while reviewing your credit report. This could be an early sign of identity fraud.

You contact the credit reference agency, who advise you on the next steps to secure your identity.

Actionable summary

A soft credit check is nothing to be scared of as they happen all the time. As you now know, they are actually a good thing and can work in your favour.

Just remember to:

• Check your credit report regularly using soft checks.
• Always use eligibility checkers before applying for credit.
• Compare financial products with tools that use soft searches.
• Monitor your credit report for signs of fraud.
• Limit hard credit checks by only applying for credit you’re likely to be approved for.

By following these steps, you can make informed financial decisions, protect your credit score, and avoid unnecessary risks.

Soft credit check frequently asked questions

Can you fail a soft credit check?
No. A soft credit check is not an application for credit, so you can’t “fail” it. It’s simply an initial look at your credit data12.

How many soft credit checks can you have?
There’s no limit. You can have as many as you like, and it won’t affect your credit score15.

Are soft credit checks visible to lenders?
No. Only you can see them on your credit report. Lenders will only see hard searches125.

What’s the difference between a soft and a hard credit check?
A soft check is a preliminary look and has no impact on your score. A hard check is a full review, visible to all lenders, and can temporarily lower your score.