By Clare Yates
4 min read
Here’s a simple, jargon-free guide to how they work.
What are soft credit searches?
A soft search is like a quick background check. It gives lenders a sneak peek at your credit report without leaving a mark that others can see. You might not even realise a soft search has happened, and it won’t affect your credit score.
They are also used when you're checking your own credit score, perhaps when seeing if you're likely to be accepted for a loan or a mortgage agreement in principle.
Soft searches are used for:
Eligibility checks: Before you apply for a credit card or loan, many lenders do a soft check to see if you’re likely to be approved.
Mortgage agreements in principle: Some lenders do a soft check at this early stage, before a full application.
Checking your own credit report: Whether it’s through Experian, Equifax or another service, this won’t harm your credit score.
What are hard credit searches?
A hard credit search is more serious. It’s a full look at your credit history and leaves a visible mark on your credit file. Other lenders can see it, and too many hard searches in a short space of time can raise a few eyebrows.
They are used when you actually apply for credit – whether that’s a personal loan, credit card, mortgage, or something like a mobile phone contract with finance involved.
Hard searches happen when you:
Apply for a loan or credit card: This is when lenders take a proper look at your credit history.
Apply for a mortgage: A full mortgage application always involves a hard check.
Sign up for finance or a contract: Think car finance, buy-now-pay-later, or some mobile and utility contracts.
Why do lenders do credit checks?
Lenders need to know whether you’re likely to repay what you borrow. Credit checks give them the information to make that call. A soft check gives them a rough idea. A hard check gives them the full picture.
It’s not just about your past borrowing, either. Lenders look at your current debts, how much credit you’re using, and even whether you’re registered to vote. They want to see if you're a responsible borrower, and whether lending to you is a safe bet.
A credit check helps lenders check:
Your repayment history.
Your total debts and credit use.
Whether you’re financially stable.
Any past defaults or missed payments.
When might searches hurt your credit score?
Soft searches don’t show up to anyone but you, and they don’t affect your credit rating at all.
A single hard search won’t do much harm. But several close together? That can start to chip away at your score. Lenders might see it as a sign that you’re desperate for credit or struggling to manage money.
What to keep in mind:
Hard searches stay on your file for 12 months.
Multiple hard checks in a short time can look risky.
Soft checks are completely invisible to other lenders.
How to manage credit checks smartly
If you’re planning to apply for credit soon, it pays to be tactical. Space out any applications, use eligibility checkers, and keep an eye on your credit file.
Top tips to stay credit-smart:
Use soft search tools first: Check your chances before you commit.
Don’t apply for lots of credit at once: It can set alarm bells ringing.
Track your file: You can see soft and hard searches using free credit tools.
Fix mistakes fast: If there’s something on your report that shouldn’t be there, get it sorted.
Understanding the difference between hard and soft credit checks puts you in control. You can plan better, protect your credit score, and avoid nasty surprises. Before you apply, see what you’re eligible for. And if the odds are low? Maybe hit pause, improve your credit file, and try again when you’re in a stronger spot.