Consumer Credit: The Benefits of a Soft Credit Check
Consumers are opting for "soft pull" credit checks, an alternative to "hard pull" credit checks which can negatively affect credit scores

At LendPro, we regularly consult with retailers about all our possible lending options for their customers. Seamless, fast and easy, our system matches the customer with the best credit option by simply clicking a button. There’s no awkward elephant-in-the-room discussion between a customer and a sales associate about being declined, which requires the customer to fill out a whole new application. With LendPro, merchants save their valued customers from repeated credit rejections and embarrassment.  While we are improving the journey for the consumer, we also save the sales team’s time!

In the last six months, a trend has emerged with secondary lenders and some prime lenders to use “soft pull” credit inquiries that don’t affect a customer’s credit score. The customer is presented an offer based on the lender’s underwriting algorithm and soft credit check, and, if the customer agrees, only then will the lender perform a complete“hard pull” to verify the information and identity of the applicant. If a customer happens to be declined after a soft inquiry, no hard credit pull is performed, and the customer has the choice to submit to another lender option without further effort.

These lenders are opting not to use Vantage scores, a credit bureau collaboration with Equifax, Experian and TransUnion. Instead, the varied attributes they’re collecting may be from just one credit bureau like Equifax or a company like LexisNexis to provide insights into credit risk assessments that assign correlations for the lender to present an offer to the consumer.

In today’s retail market, both merchants and customers want to know - and should be made aware - if credit is being pulled. Using a full credit check may affect the consumer’s credit score and remain on their report for up to two years. This could also negatively affect their relationship with the retailer. By using a soft inquiry coupled with an offer before pulling a hard credit report, retailers can offer consumers more control in choosing their financing options. This customer-comes-first approach will always keep consumers happy and will bring a multitude of benefits to retailers who pay attention to consumer preferences.  

Contact us at (434) 202-0137 or via email: to discuss whether your lender portfolio is right for your customers, and to learn more about the availability of lenders who take the soft pull approach.