What is a Credit Pull?
A credit pull (or credit inquiry) is when a company checks a customerâs credit report from one or more credit bureaus. This is common when evaluating eligibility for financing, loans, or certain business accounts.
Soft Credit Pull
Purpose: Usually for pre-qualification, background checks, or account reviews.
Impact on Credit Score: No impact on the customerâs credit score.
Customer Consent: Often still requires consent, but customers may not see it on credit reports viewed by lenders.
Examples:
Checking pre-approval for financing
Background checks for employment
Credit monitoring services
How To Explain It:
âA soft pull just gives us a snapshot of your credit profile to see what you might qualify forâit wonât affect your credit score.â
Addressing Customer Concerns During a Move đĄ
Some customers may be hesitant to proceed with a hard credit pull if they are in the middle of movingâespecially if theyâre applying for a mortgage or rental. Hereâs how to handle it:
Show Understanding First
Acknowledge their situation to build trust:
âI completely understand you donât want anything to impact your credit while youâre finalizing your move. Thatâs a big priority.â
Explain the Timing Impact
Reassure them that the effect of a hard pull is minor and temporary:
âA single hard pull typically only lowers a score by a few points and recovers quicklyâit wonât prevent you from qualifying unless your score is already on the edge.â
Highlight the Benefit of Acting Now
Tie the credit pull to a clear advantage:
âIf we complete the hard pull now, you can lock in your approval and terms before your moveâsaving you time and potentially better rates.â
Offer a Post-Move Option if Needed
If theyâre still concerned:
âWe can start with a soft pull today, so you know exactly what youâll qualify for, and schedule the hard pull right after your mortgage is finalized.â
Hard Credit Pull
Purpose: For final approval of financing, credit cards, or loans.
Impact on Credit Score: Can temporarily lower the credit score by a few points (effect lessens over time).
Customer Consent: Requires explicit consent and is visible to other lenders.
Examples:
Applying for a loan or line of credit
Applying for a mortgage
Applying for a new credit card
How To Explain It:
âA hard pull is a full credit check used when you actually apply for financing. It may have a small, temporary impact on your credit score.â
Key Talking Points for Merchants
Transparency: Always let the customer know if a pull will be soft or hard before running it.
Reassurance for Soft Pulls: Emphasize that thereâs no impact on their score.
Timing for Hard Pulls: Let customers know itâs part of the final application process, not the pre-qualification step.
Consent: Document customer consent for any type of credit pull.