Lenders look at your credit report through one of two types of inquiry. The difference matters because one of them temporarily lowers your credit score and the other doesn’t.

Soft credit pull

A soft pull (sometimes called a soft inquiry) is a review of your credit report that doesn’t affect your credit score. Soft pulls happen when:

• You check your own credit score
• A lender pre-qualifies you for an offer
• A potential employer reviews your credit (in states where allowed)
• An existing creditor reviews your account

Soft pulls do show up on your credit report, but only you can see them — they don’t appear to other lenders, and they don’t change your score.

Hard credit pull

A hard pull (or hard inquiry) is a credit check that does affect your credit score, typically by 3-7 points for about a year. Hard pulls happen when you formally apply for credit — a credit card, a mortgage, an auto loan, or a personal loan you’re committing to.

A single hard pull is a small impact. Multiple hard pulls in a short window (when shopping for a mortgage or auto loan) are typically treated by FICO as a single inquiry if they happen within 14-45 days, depending on the scoring model.

When does each happen in a personal loan application

At Nationwide, the sequence is:

1. Rate quote stage (when you fill out the initial form): no credit pull at all. A specialist reviews your details first.
2. Specialist review and rate confirmation: a soft pull may happen here as part of verifying you qualify for the rate quoted.
3. Final application and e-sign: this is where the hard pull happens. By this point you’ve seen your actual rate and terms and decided to commit.

If a lender does a hard pull before you’ve seen your rate or committed to applying, that’s a red flag.

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