What is a soft credit pull vs. a hard credit pull?

A "soft credit pull" and a "hard credit pull" are two different types of credit inquiries that can be made by lenders or other organizations.

A soft credit pull, also known as a soft inquiry, is a type of credit check that does not affect a person's credit score. It is typically used to check rates, and it is not visible to other lenders or third parties. Soft credit pulls can be done by a lender or other organization without the borrower's consent. CapCenter currently provides free, anonymous quotes online with rate and fee estimates based on a credit assumption of 780+.

A hard credit pull, also known as a hard inquiry, occurs when a lender or other organization checks a person's credit as part of a loan or credit application process. Hard credit pulls can have an impact on a person's credit score, and they are visible to other lenders and third parties. Hard credit pulls can be done only with the borrower's consent.  CapCenter currently performs a hard credit inquiry for loan applications.

In general, when you're shopping for a mortgage, credit card, auto loan, etc. it's best to limit the number of hard credit inquiries you have as it can lower your credit score. However, when you're ready to apply for a loan or credit, the lender will do a hard credit inquiry, as it is a necessary step. It's also important to keep your credit history intact as much as possible after you submit your loan application until closing is complete to avoid any surprises with the loan application closing process.