‘Soft’ and ‘hard’ credit checks - what impacts your credit score?
In this guide, we explain how ‘soft’ and ‘hard’ credit checks work, what sets them apart and how to use them to improve your credit score.
Estimated read time: 3 mins
Vanquis offers ‘hard’ and ‘soft’ credit checks for those looking to qualify for credit or loans.
They’re both about checking whether you can repay what you borrow – but they vary in how in-depth they are and how much they impact your credit score.
What is a credit check?
When a lender looks at your credit report to understand your financial history and habits, they do a credit check.
We often use this info to see whether you have a good history of managing money and debt. This helps us decide whether or not to lend to you.
We usually need a legitimate reason for doing our ‘soft’ or ‘hard’ credit checks. This will be because you have applied for one or more of our products.
Why do lenders do credit checks?
At Vanquis, we do credit checks to get an idea of how much money you have coming in and going out each month – and to see if you should be able to handle a repayment plan.
We’re also looking to understand how you’ve managed credit in the past.
When we do credit checks, we’re looking at how risky it might be to lend to you, based on your financial history and how likely you are to repay on time.
What is a ‘soft credit check’?
The results of any credit card ‘soft search’ will show on your credit file for 12 months. But these searches aren’t visible to companies.
This is why ‘soft searches’ don’t impact your credit score or any future credit applications.
So, it can be helpful to use the ‘soft search’ credit card check if you’re looking to apply for a credit card with bad credit.
Why use a Vanquis ‘soft credit check’?
There are several reasons to use the Vanquis Credit Card ‘soft search’ before you apply for a credit card:
It won’t affect your credit score
- Using a credit card ‘soft check’ gives you an indication of whether your application will be accepted.
- You can check without affecting your credit score.
- It avoids having multiple rejected applications on your credit file.
You’ll get an answer in minutes
- Our ‘soft search’ eligibility checker is quick and easy to use.
- You’ll only need to enter a few key details.
- Get a quick decision about whether you’re likely to be accepted for credit.
You can apply with confidence
- If we agree to lend to you at this stage, it’s more likely your full application will be approved.
- Remember, being accepted isn’t guaranteed at this point. We’ll need to do a full credit check before we make a final decision.
- This 'hard search' will be noted on your credit file, whether or not your application is successful.
Who can use our ‘soft search’ service?
Anyone who wants to apply for a Vanquis Credit Card can use the ‘soft search’ service. But credit is only available to UK residents over 18 years old who aren’t legally restricted from getting credit.
If you’re told your application isn’t likely to succeed, it’s a good idea to think carefully before applying.
A rejected application can damage your credit score and make it even harder for you to get credit.
What will you need for a ‘soft credit check’?
- Your full name and date of birth
- Your full address, residential status (homeowner/tenant, etc.) and how long you’ve lived at your current address
- Your phone number and email address
- Your employment status, monthly income and outgoings and number of dependants.
What is a ‘hard credit check’?
If you qualify for a full credit check, we’ll then recommend a ‘hard search’.
A ‘hard search’ credit check is more thorough and detailed than a ‘soft credit search’. It gives the lender the chance to search your entire credit report, including all your loans and credit products.
‘Hard searches’ are usually recorded on your credit report. So, it’s important not to apply for too many credit products in a short period of time, as each one could trigger a ‘hard search’.
It’s not just lenders that can run a ‘hard search’. Utility companies and mobile phone providers may do one too.
How long do ‘hard credit checks’ stay on your credit file?
‘Hard credit checks’ remain visible on your credit file for two years.
But they usually only affect your credit score for one year, depending on how well you’ve managed your repayments in the months since your last ‘hard check’ and your previous credit history before it.
The differences between ‘soft’ and ‘hard’ credit checks
The main difference you need to know is ‘soft searches’ aren’t visible to companies but ‘hard searches’ are.
No matter how many ‘soft searches’ are on your credit report, it won’t damage your credit score.
Lenders may get nervous if they think you’re applying for ‘hard credit checks’ too often. This can suggest you’re desperate for credit.
Lots of ‘hard searches’ on your credit report will make you look like a high-risk borrower and can damage your credit score. A lower credit score can limit the types of credit you can apply for.
Below is a quick summary of the differences between ‘soft’ and ‘hard’ credit checks:
'Soft search' checks
- Invisible to companies.
- Don’t affect your credit score.
- Used for eligibility and identity checks and checking your credit report.
- Usually stay on your credit report for 12-24 months from the search date (remember, ‘soft searches’ don’t impact your credit score).
'Hard search' checks
- Visible to companies.
- Usually stay on your credit report for 12-24 months from the search date.
- Can lower your credit score.
- Used when you apply for credit, loans, mortgages, utilities or mobile phone contracts.
Improving your chances of being accepted for credit
There are several things you can do to increase your chances of being approved for a credit card with Vanquis or another lender:
- Check your credit report is up to date and doesn’t have any errors.
- Only apply for products that suit your situation. If you have a poor credit score, this means applying for a credit card for bad credit rather than a ‘standard’ credit card.
- Only apply for one credit card at a time.
If you’re accepted for credit, always use your credit card carefully and correctly.
This shows lenders you’re responsible with credit and you can manage your money successfully. Demonstrating this could help improve your credit score.
Credit cards with Vanquis
If you’ve passed a ‘soft check’ and are looking to build your credit score, get on top of your debt or take advantage of our offers, we have a range of cards for those with low credit scores.
Representative 37.9% APR (variable)
Frequently Asked Questions
Do soft credit checks show CCJs (County Court Judgments)?
Just because a ‘soft check’ is labelled this way, it doesn’t mean it’s not thorough. A ‘soft check’ can show a CCJ on your credit file, which may have an impact on your application at the time.
Can I avoid hard credit checks?
Although a ‘hard credit check’ is impossible to avoid when committing to a full credit card application, it’s best to make sure you’re not doing too many at once. This can affect your credit score.
Take advantage of our ‘soft credit checks’ when you need to. This lets you see which cards you might be eligible for – or are more likely to be accepted for – before you apply.
Can I remove hard credit checks from my file
You can’t remove ‘hard credit checks’ from your credit file. But they will disappear over time.
Because you can’t manually remove them from your credit score, it’s important you don’t make too many applications and only commit to ‘hard searches’ when you’re likely to be accepted.