Differences between a hard and soft credit check
What is a soft credit check?
A soft credit check happens when a credit report is accessed for non-lending purpose. These occur when
Employers or landlords conduct background screenings
Individuals check their own credit score or report
Someone applies for utility services
Soft checks don't affect credit scores and aren't visible to lenders reviewing the report. More importantly, Tenalet runs a soft credit check for tenant screening.
What is a hard credit check?
A hard credit check happens when lenders review credit reports to decide whether to approve loans, or credit cards. Unlike soft checks, hard checks can lower credit scores by a few points and remain on credit reports for about two years. Multiple hard checks in a short period may signal financial stress to lenders.
For landlords, using soft credit checks for tenant screening protects applicants' credit scores while still giving you the financial information you need.
For tenants, with the soft credit check run by Tenalet, applying for a rental won't impact your credit score the way applying for a loan would.
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