A soft pull is a credit check that only you and the lender doing it can see, and it does not affect your credit score. A hard pull is a full credit check tied to an application, and it can lower your personal FICO score by a few points for up to a year. Good brokers pre-qualify you with soft pulls, then let only the lender you are likely to choose run a hard pull.
The difference in one table
| Soft pull | Hard pull | |
|---|---|---|
| When it happens | Pre-qualification, your own check, account reviews | A formal application or final underwriting |
| Effect on FICO score | None | Usually less than five points |
| How long it affects the score | Never | 12 months |
| How long it shows on your report | Visible only to you | Up to two years |
| Visible to other lenders | No | Yes |
| Your consent | Often implied by a pre-qualification request | Given on the signed application |
The numbers come from myFICO: one additional inquiry takes less than five points off most people's FICO scores, and hard inquiries stay on the report for up to two years but only affect FICO scores for one year. Soft inquiries, such as viewing your own report, do not affect FICO scores.
Personal credit and business credit are separate
Business lenders look at two kinds of credit.
Your personal credit. Most small business lenders check the owner's personal report, often for every owner of 20% or more. This is where hard pulls can cost points.
Your business credit. Business bureaus score the company itself. OnDeck notes that Dun & Bradstreet's PAYDEX score and Experian's Intelliscore Plus are generally not affected by hard inquiries, while Equifax business scores and FICO's Small Business Scoring Service may be.
When a broker says "this is a soft pull", ask which report it is on and confirm it is soft on your personal credit, since that is usually the one that moves.
When each pull happens in a brokered deal
- Pre-qualification. Your broker or a lender's platform runs a soft pull to see which products fit. OnDeck, for example, states it checks eligibility with a soft pull on the owner's personal credit.
- Matching. Your broker uses that picture to pick the lenders most likely to approve. No new pull is needed.
- Submission to lenders. Some lenders review with a soft pull and only pull hard at the end. Others pull hard when they open the file.
- Final underwriting and closing. The lender you choose runs a hard pull, if it has not already.
The goal is one hard pull, from the lender you actually take, or a small number from lenders who are genuinely likely to approve.
Rate shopping and grouped inquiries
myFICO states that FICO scores group multiple hard inquiries made within a short window, 14 to 45 days depending on the score version, and count them as one. That treatment is clearest for mortgage, auto and student loan shopping. Business lenders and scoring models do not all treat business loan inquiries the same way, so do not rely on it. Keep the number of hard pulls low by design.
How a good broker protects your credit
- Pre-qualifies with soft pulls and bank statements first
- Knows each lender's credit box, so files only go where approval is likely
- Tells you before any lender runs a hard pull
- Submits to a short list in parallel rather than one after another over months
- Does not shop your file to dozens of lenders at once
That last point matters. The Federal Reserve's 2025 Small Business Credit Survey found that 46% of firms denied financing were told lender requirements were too strict for them. Each wasted application can mean a wasted hard pull. Matching well is how a broker avoids both.
Questions to ask before you sign an authorisation
- Is this authorisation for a soft pull or a hard pull?
- Which bureaus will be checked, personal and business?
- Which lenders will see my file, and will each one pull hard?
- When will the hard pull happen?
Your signed application usually authorises the lender, and sometimes the broker, to pull credit. Read the authorisation line before you sign.
If your score is already thin or bruised
A few points from one inquiry rarely changes an approval. What changes approvals is a pattern of many recent inquiries, which can look like a business searching for money anywhere it can find it. If you have had several hard pulls this year, tell your broker. They can lean on lenders that underwrite mainly from bank statements and cash flow, where recent inquiries carry less weight.
What a lender sees in your inquiries
When a lender opens your personal report, it sees each hard inquiry from the last two years: the name of the company that pulled and the date. It does not see soft inquiries. A single inquiry from a lender that funded you reads as normal borrowing. Five inquiries from five different funders in three weeks reads as a business shopping hard for money, and some lenders will ask why.
You can turn that into a non-issue by explaining it. If you shopped for an equipment loan in the spring and chose one lender, tell your broker, and they can note it on the submission. Context goes a long way with underwriters, and a broker who knows the lender personally can supply it in one line.
Check your own credit first
Pulling your own report is a soft inquiry and costs you nothing in score. Do it before your first broker call so you can share an accurate number. If you find errors, dispute them with the bureau before you apply.
Verified entries on the register describe how each broker pre-qualifies, so you can see who leads with soft pulls. Ready to start? Use the match form and tell us you want a soft pull first.
Questions owners ask
Does a soft pull affect my credit score?
No. myFICO states soft inquiries do not affect FICO scores.
How much does a hard pull lower my score?
For most people, less than five points, according to myFICO, and it only affects FICO scores for one year.
Will several lenders pulling my credit hurt more?
Each hard pull can count. FICO groups multiple inquiries within 14 to 45 days into one, but business lenders vary, so ask your broker to limit hard pulls to lenders likely to approve.