What is a soft credit check?
A soft credit check (also known as a soft search) is a quick look at your credit report to get a snapshot of your financial circumstances. Who might want to run such a check? Well, it could be...
A company doing an ID check on you
A lender giving you an eligibility quote for a pay monthly mobile deal, credit card, or loan before you do a full application
You wanting to take a look at your own credit score to see how healthy (or otherwise) your credit history is
Some of the companies that can carry out soft searches include:
Banks and building societies
Credit reference agencies and credit score services such as Experian and ClearScore
Comparison websites such as Compare the Market
Employers
Landlords and letting agencies
Utility suppliers
What’s the difference between a hard and soft credit check?
The main difference between a hard and soft credit check is the extent of the search into your financial behaviour and, critically, who can see it afterwards.
Is carried out by lenders when you make a full application for credit such as a personal loan or mortgage
Is a deep dive into your financial history to help lenders decide how likely it is that you’ll pay them back and - ultimately - if they want to lend to you
Leaves a visible mark or ‘footprint’ on your credit history that other lenders can see. It will tell them how often you apply for credit.
A soft credit search:
Is usually run when you check your own credit score and history
Is also carried out by companies who want to check your identity or credit score to see how eligible you are for credit, e.g. for a personal loan
Can’t be seen by other lenders and won’t affect your credit score, no matter how many are done.
Here’s a breakdown of when a soft credit check is used versus a hard credit check:
Soft credit check | Hard credit check | |
|---|---|---|
Visible to you on your credit report | Yes | Yes |
Visible to lenders on your credit report | No | Yes |
Used when you check your report | Yes | No |
Used when you try an eligibility checker | Yes | No |
Used when you apply for credit | No | Yes |
Used for an identity check | Yes | No |
Visible on your credit report for... | 12 months | 12 months |
But it’s not always cut and dried. Similar to landlords and letting agents, utility companies and other service providers may carry out either hard or soft credit searches. It all really depends on what they’re checking for.
Does a soft credit search affect your credit score?
No, a soft credit search doesn‘t affect your credit score or reduce your chance of getting credit. This is because they’re invisible to everyone but you, so you can keep an eye on who’s looking into your credit history.
If you’re looking to take out a credit card, you’re better off using an eligibility checker rather than applying for several cards at once. A checker runs a soft search to see what you’ll likely be approved for and compares rates before you start an application.
When you explore your options with Compare the Market, you can do just that. We’ll show you the cards and soft credit check loans you’re most likely to be accepted for, so you can compare without damaging your credit score.
Compare credit cardsWhat does a soft credit check show?
As a snapshot of your financial history, it’ll show recent data and personal information including:
Your name, home address and date of birth
A list of any types of credit you currently have including bank accounts, loans and credit card accounts, and any outstanding debts
Details of your credit repayment history, including any missed or late payments
The identity and details of anyone you’re financially linked to, for example a spouse or partner you have joint credit with
Public records on any County Court Judgements, bankruptcies, and individual voluntary agreements over the past six years
A soft search might sound like it contains a lot of information. Yet a hard search is even more in-depth, showing a complete picture of your credit history. Remember, a soft credit check includes all the information you can see when you look up your own credit score.
What do lenders see on your credit report?
With a hard credit check, lenders will be able to see:
Your borrowing history
Your ability to repay credit you’ve previously taken out
Whether you’ve missed payments, been late repaying or had debt collected (which could be visible for several years)
If you’ve been successful for other credit applications
Bear in mind...
If you apply for credit several times over a short period, this will be visible on your credit file. It could make lenders wary since it may suggest you‘re short of money and struggling, or rely too much on credit.
Find out more: hard credit checks explained
FAQs
Do businesses need permission to check my credit?
Companies generally don’t need your permission to run a soft search, but they must get your approval for a hard credit search. This is because it could affect your credit score.
If you’re applying for a loan, credit card or similar, you’ll normally have to tick a box to give permission for a hard credit search before going any further
Some companies you already have an account with may do a soft credit search without asking your permission first. For example, they might do this before offering you a new product. Don’t worry, this soft credit search won’t affect your credit score.
What if I notice a search on my credit report that I didn’t authorise?
If you see an inquiry you don’t recognise:
Contact the creditor to check why the search was made. It may just be you don’t recognise the name of the creditor. You can get their contact info from the credit report.
If you discover that someone is using your personal info to apply for credit, report it to Action Fraud. You’ll also need to contact the credit reporting agencies (CRAs) - Equifax, Experian and TransUnion. They can put a fraud alert on your account and look into it for you.
Once it’s confirmed as fraudulent, the unauthorised search should be removed from your report.
Find out more about credit card fraud.
If I check my credit report, will it lower my score?
No, checking your own credit score and report is a ‘soft’ credit search. That means it won’t lower your credit score or affect your chances of getting credit.
It’s important to keep an eye on your credit score and check it regularly. Knowing your credit score will give you an accurate picture of your financial health and can alert you to any credit card fraud carried out in your name.
If I check my eligibility for a credit card or loan, will it affect my credit score?
No, eligibility checks are soft searches, which means they won’t show up to other lenders when they check your credit score.
So, for example, when you use our credit card eligibility checker to see what credit cards you’ll qualify for and compare rates, it won’t affect your credit score.
How long does a CCJ stay on your credit report?
A CCJ (County Court Judgment) will stay on your credit report for six years.
Having a CCJ on your credit report could negatively affect your credit rating, making it harder to borrow money.
How long does bankruptcy stay on your credit report?
Once the order is made, bankruptcy will appear on your credit report for six years.
Can you pass a credit check with an IVA?
Yes, it is possible to pass a credit check with an IVA. However, it could be much more difficult.
An IVA (Individual Voluntary Arrangement) is a legal agreement between someone and their creditors to pay back outstanding debts.
Therefore, having an IVA on your credit file is a signal to potential lenders that you’ve missed payments in the past. This makes you a higher risk.
An IVA will appear on your credit report for six years.
What do estate agents check when doing a credit check?
An estate agent, letting agent or landlord may want to run a credit check on you to see if you’ve had any problems paying bills in the past. It’s like a financial background check that will help them decide whether you’d make a good tenant.
Private landlords may skip a credit check, because they take time and can delay the whole process.
If they’d like to run a credit check on you, they must get your permission.
What can employers see on a credit check?
A potential employer may use a credit check as part of your application to:
Confirm your identity
Verify your address
Find any CCJs, bankruptcy or other court orders.
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Allie has spent her career helping people quickly understand complicated topics, to help them save money and focus on what matters. With almost 10 years’ experience writing, leading and managing content, she is an expert in personal finance and insurance products.
Ele Clark is an award-winning editor who has held leadership roles at Which? and news-stand publications in London and Dubai. She’s appeared across the press and media, including BBC’s Panorama. With almost 20 years’ experience in personal finance, insurance and consumer journalism, she leads a talented team at Compare the Market, creating insightful, accessible content to help people make informed financial decisions.
Charlie is a senior commercial leader with close to a decade of experience across the UK’s leading personal-finance and comparison platforms. Before joining Compare the Market as Head of Commercial in 2024, he held senior commercial roles at TotallyMoney and MoneySuperMarket Group.
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