Credit Score Basics > Are soft searches a good indication of being accepted for credit?

Are soft searches a good indication of being accepted for credit?

Wollit Team2 minute read · Updated 23rd July 2024

Soft credit searches, for example the ones from websites like MoneySuperMarket or ClearScore, can be a useful tool to check your eligibility for credit products without hurting your credit score.

However, while soft searches can give a decent indication of your chances of being approved, you should take their results with a pinch of salt – they do not guarantee that your loan application will actually get approved. Here is how they work.

What is a soft credit search?

A soft credit search, also known as a soft credit check or soft inquiry, is a credit check that allows lenders to review your credit report without leaving a visible footprint. This means that soft searches do not affect your credit score and cannot be seen by other lenders when they look at your credit history.

Soft searches are usually run by lenders to “pre-screen” you and figure out which credit products you may qualify for. They are also used when you check your own credit report or when a company runs a credit check as part of an identity verification process.

How are soft searches different from hard credit checks?

The main difference between soft and hard credit checks is the impact they have on your credit score and credit report.

Hard credit checks:

• Happen when you actually apply for credit, such as a loan, credit card, or mortgage.
• Leave a visible trace on your credit report, which can be seen by other lenders.
• Can temporarily lower your credit score, as they show that you are actively seeking new credit.

Soft credit checks, on the other hand:

• Do not leave a visible trace on your credit report.
• Cannot be seen by other lenders.
• And do not affect your credit score, no matter how many of them you have.

Basically, you can check your eligibility for credit products without the risk of hurting your credit score. This allows you to shop around and compare offers without worrying about the effect on your credit rating.

If I pass a soft credit search, does it mean I will get approved?

Not really. Soft searches can give you a decent indication of your chances of being approved for credit, but they are not a guarantee. This is because while lenders use soft searches to pre-screen you and get a general idea of your creditworthiness, they still need to run a more thorough hard credit check before making a final decision on your application. It’s a legal requirement.

Whether a soft search is accurate in predicting your credit approval depends on a few factors:

1. Your credit profile. If your credit profile is strong and you don’t have “adverse events” like bankruptcies or missed payments in your credit history, a soft search is more likely to accurately predict a successful application.
2. The specific credit product you’re applying for. Some of them, such as personal loans or credit cards, may have a bit more lenient eligibility criteria than mortgages, for example. A soft search may be a better indicator of approval for the former than the latter.
3. The lender's criteria. Each lender has its own set of criteria for approving credit applications. A soft search may mean that you are likely to be approved by one lender, but not necessarily by another with different requirements.

In other words, even if a soft search suggests you are likely to be approved, your actual application could still get rejected. Lenders may uncover additional information during the hard credit check that could affect their decision.

This is why it’s so important to work on your credit score so your credit history is in the best shape possible. One of the ways you can do this is to download a credit-building app like Wollit.

Wollit works by reporting a fixed fee monthly subscription as a loan repayment to the credit reference agencies (Experian, Equifax, and TransUnion). This helps you build or rebuild your credit history by showing that you can pay debt on time. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills when they’re due. In time, this will help you improve your credit score so you won’t need to be worried about any credit check ever again.

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