What is the Difference Between a Hard Credit Check and a Soft Credit Check?

Credit Checks At-A-Glance

• When applying for a new card, businesses will typically run a “hard check” of your credit report. A hard credit check can cause a temporary impact to your credit score. 
• Unlike many lenders, for American Express’ personal cards, you can see if you will be approved before you apply without impacting your credit score. 
• A soft credit check is a check into your credit report initiated either by you or a company even if you didn’t apply for credit. It is primarily used to screen for pre-approval financing offers or for a background check.
  

A major fact of life is that whoever you get financing from will likely evaluate your financial status – and do it regularly. Submitting a card application, as well as some rental and employment applications, could trigger a “hard” check of your credit report to get a sense of how you handle spending and debt payments.ⁱ

Available for American Express personal cards, we’ll let you know your eligibility with no impact to your credit score, so you can submit your application with confidence.*

A Soft Credit Check vs A Hard Credit Check 

Credit checks happen when someone, even you, takes a look at your credit. When you officially apply for credit a lender may run a hard check, which could temporarily impact your score.ⁱⁱ Soft checks, however, happen with pre-approvals, or when you check your credit report for yourself – which you should do from time to time to keep an eye out for mistakes or identity theft.ⁱⁱⁱ Soft checks don’t impact your credit score. Here’s how hard and soft checks differ:

Hard Checks

These should happen only when you formally request some form of credit, whether you’re borrowing money or applying for a new card.ⁱ Hard checks may stay on your credit report for up to 36 months.ⁱⁱ With American Express personal card applications, a hard check only occurs after you’ve submitted your application, not during the application process itself. 

Soft Checks

These happen when you check your own credit report or when a business checks it without you requesting credit.ⁱ A soft check has no impact on your credit score.ⁱ

Understanding the differences between soft and hard credit checks can help you avoid any unnecessary impact in your credit score.

What is a Hard Credit Check? 

Besides applying for a new card, there are other financial moves that will create a hard credit check. Landlords or leasing managers may make a hard check when you apply to rent a place, or it could be triggered during some employment applications.ⁱ

The reason a hard check impacts your credit score is because you’re asking for credit in one form or another. Hard checks also serve as a heads up to businesses checking your credit. If they see too many hard checks, that can be a flag that you are urgently seeking credit or trying to live beyond your means.^iv

For American Express personal cards, you can check to see if you will be approved without impacting your credit score.* Soft checks are currently not available yet for American Express business cards.

What is a Soft Credit Check?

A soft credit check is a check into your credit report initiated either by you or a company even if you didn’t apply for credit. It is primarily used to screen for pre-approval financing offers or for a background check. A soft check does not affect your credit score.ⁱ Here are some soft check examples:

• Existing credit relationships: Once you have a loan or account with a business, they might check your credit report from time to time just to make sure all remains good.ⁱ It counts as a soft check.

• Checking your pre-approval: American Express allows a prospect to see if they will be approved for a new personal card before applying.

The Takeaway

The main difference between hard checks and soft credit checks is the impact on your credit score. The process for American Express personal cards allows you to see if you will be approved before you apply, without impacting your credit score.*

Apply With Confidence for an American Express Personal Card