What is the impact of a soft credit inquiry?

A soft credit inquiry is a type of credit check that does not affect an individual's credit score. This is because soft inquiries are typically made for purposes such as background checks, pre-approved credit offers, or by individuals checking their own credit. Since they do not indicate that the consumer is actively seeking new credit, they do not influence credit scores in the same way that hard inquiries do.

Understanding this distinction is important for consumer credit management. Many individuals might be concerned about how their actions impact their credit score, but knowing that soft inquiries do not affect it can alleviate some of that concern. It is crucial for consumers to be aware of this when they are checking their own credit or when receiving promotional offers.