“Soft pull personal loans” is probably a term you might have run into. This can be an excellent option for a loan, as it does not affect your credit score and provides fast approval.
We’ll help you understand how asking for funding can impact credit scores in the major credit bureaus and your chances of a lender approving you. Find here a list of the best financing available today.
The Best Personal Loans With a Soft Credit Check
Let’s dive into the top three lenders to consider when you need a personal loan with a soft credit check!
At Camino Financial, our number one belief is that no matter what the circumstance is, everyone is deserving of access to the money they need.
Looking for online loans with a soft credit check? Try Camino Financial’s Loans:
You can get from $1,500 to $7,500, with an APR of 33% to 35% and 12 to 36 months to pay. Plus, you can pay off your loan before without having to worry about prepayment penalties.
Even better yet, you can get money in your account as soon as five days
What makes us unique:
We designed our process to tailor to your specific needs. This means that:
- You can apply with an ITIN if you don’t have an SSN
- You can get an instant prequalification
- We offer unsecured loans, so you won’t need to pledge collateral to qualify
- You can use the loan proceeds for your business expenses
On top of these things, some of the benefits you’ll find with our soft pull personal loans include:
- A straightforward online application process to get a startup business loan.
- A loan application that doesn’t affect credit score.
- A completely safe and secure process.
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If you’re interested in a simple unsecured personal loan, feel free to submit an application today!
If your credit report is not perfect, OneMain may have personal loans with no credit check options for you.
To get approved for a loan with OneMain, you’ll need to visit one of their storefront locations to finish the loan application process.
If you don’t feel comfortable navigating your way through the borrowing process online, this might be a selling point for you. But if you’re looking for the convenience that online loans offer, this may not be your best option.
One Main’s Loans:
You might be able to get a loan with a minimum loan amount of as little as $1,500 and up to $20,000, with a term of 24 to 60 months and an APR (annual percentage rate) starting at 18% and capping off at 35.99%.
One of the benefits of applying for one of the best soft pull personal loans with Avant is that the range of the loan amount you can get is relatively wide.
These soft credit check loans from a direct lender have another benefit: they can be fast. They can get you your money relatively quickly if they approve the loan.
Avant offers several different types of loans, including personal loans, debt consolidation loans, and medical expense loans.
You can get a loan anywhere from $2,000 to $35,000 with an APR from 9.95% to 35.99%. Then, you can choose loan terms from 24 to 60 months to repay.
What Are Soft and Hard Credit Inquiries?
Lenders check your credit score to see if you’re eligible for a loan and use it to get an idea of your creditworthiness.
They will often do this credit pull before applying for a loan to see if they will likely approve you.
They’re looking at information such as your credit history, payment history, outstanding debts, and credit utilization.
This information helps them determine whether you’re a good candidate for a loan.
If you have a strong credit history and are up-to-date on your payments, you’re more likely to be approved for a loan than someone with a weak credit history.
What Is a Hard Pull Credit Inquiry?
Hard inquiries occur when you or someone else requests your credit report from a lender, such as a bank or credit card company, for the purpose of extending your credit.
A hard inquiry will appear on your credit report and may negatively impact your credit score.
Understanding the Soft and Hard Pull Inquiries
Your credit report is crucial if you want to understand a soft pull credit check vs. a hard pull.
When someone performs soft inquiries, you don’t have to worry about your credit score dropping or receiving any damage.
Because soft credit pulls do not appear on your credit report.
When a lender performs a hard pull, it will become part of your credit report, and your credit score will take a bit of a hit.
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So, in what scenarios will people perform soft inquiries? Well, these could include:
- Soft pull personal loans applications
- Pre-approved offers for credit
- Offers from lenders or creditors with that you already have an account with
- Insurance companies
The critical point here – if a financial institution performs a credit check when you are pre-approved for personal loans or the loan is “a soft credit check loan,” your credit report won’t get dinged.
You don’t need to restrict yourself to borrowing money from a storefront lender. You can also find personal loan lenders with a soft credit check, which might be a little more convenient for you if you don’t want to worry about travel time, having to apply within regular business hours, and waiting in lines.
Are Soft Credit Checks Bad?
The short answer is no; soft credit checks are not bad. They can be quite helpful in certain situations.
A soft credit check is simply a way for a lender to check your credit history without impacting your credit score.
This is important because your credit score is one of the most important factors that lenders consider when determining whether or not to approve, for example, a personal loan.
While a soft credit check will not impact your credit score, it is still important to be aware of the potential implications of having one on your record.
For instance, if you are applying for a mortgage or another type of loan, a lender may see a soft credit check on your file and decide to deny your loan application.
Examples of Soft and Hard Inquiries
- Checking your credit score or report
- Pre-approval for a loan or credit card
- Requesting a copy of your credit report
- Account reviews by your current creditors
- Renting an apartment
- Submitting a correction to your credit report
- Applying for a new loan or credit card
- Opening a new bank account
- Applying for a mortgage
- Applying for a car loan
- Opening a new line of credit
- Leasing an apartment or rental property
Read more about the differences between hard pull and soft pull credit checks.
How Does a Credit Check Affect the Credit Score?
When you check your credit score, it is important to know how this will affect your score.
A hard inquiry will lower your score by a few points, but this is usually only temporary.
If you have a good credit history, your score will quickly rebound.
However, if you have a poor credit history, checking your score could further damage your score.
If you are considering applying for a loan or credit card, it is important to check your credit score first. This will give you an idea of where you stand and whether or not you will be approved for the loan or credit card.
It is also important to remember that a hard inquiry will stay on your credit report for two years. However, it will only impact your score for the first 12 months. After that, it will have no effect on your credit score.
Why You Should Get Soft Credit Check Loans
Applying for soft pull personal loans that won’t affect your credit score it’s the best way to choose the right lender.
Some Can Help You Build Up Your Credit History
Some loans that do soft credit checks can help you improve your credit score. This is because when you make timely payments on these loans, they report them to credit bureaus.
If you have no credit history, or a very limited one, then taking out a soft credit check loan and making timely repayments can help to establish a good credit history. Just make sure you ask the lender if they report the payments.
This can make it easier to get loans in the future, as lenders will see that you have a track record of repaying your debts.
They Can Help You to Reduce Your Debt-To-Income Ratio
This is because when you take out a loan and make repayments on time, it will reduce the amount of debt that you have in relation to your income.
So, if you need to apply for a personal loan without affecting your credit score, it is possible. Don’t worry if your credit score might drop a few points; take a look at the lender’s website to try and see if their loan offer uses hard or soft inquiries.
If they only offer soft pull financing, you’re in the clear!
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Apply and Pre-qualify Without Hurting Your Credit
We understand how overwhelming it can be to walk into the world of personal loans without knowing where to start and what to look for.
That’s why our main aim is to help educate you on what you need to know and make the borrowing process as simple as possible!
If you need cash but don’t want a credit inquiry to damage your credit score, soft pull loans might be the right choice for you.
Apply for a personal loan today if you need a financial boost.
What Are Other Ways to Avoid Hurting My Credit Score?
Here are some quick tips that can help you to apply for a loan that doesn’t impact on credit score:
Can Soft Pull Personal Loans Help Me Build Credit?
It depends on the financial institutions. If it reports your payments to one of the three major credit bureaus, you might be able to improve your credit score!
How does this work exactly?
Well, your payment history and ability to make timely monthly payments on your credit accounts are some of the most significant factors that affect your credit score.v
So, as long as you don’t miss any payments on your soft pull personal loans, your credit report and credit score will remain healthy. Plus, you might be able to give your credit score a boost!
How to do a soft credit check?
There are a few different ways to make a soft credit inquiry. You can go through a credit monitoring service, like Credit Karma or Mint, or you can pull your own credit report from the three major bureaus (Experian, TransUnion, and Equifax)
What Can Lenders See With a Soft Pull?
Lenders can see your overall credit history with a soft pull, including how you’ve repaid the debt in the past, the monthly payment, and whether you have any current loans or credit card balances. It usually also includes information about your employment and salary.
Where Can I Find a Personal Loan Soft Pull?
Another thing to keep in mind is that you can find soft credit check loans from a direct lender or a loan matching service.
Both systems have their merit, so do a bit of research to figure out what might work better for your situation.
Camino Financial is an online direct lender with minimum requirements and friendly repayment terms. And applying online for our loans that don’t hurt your credit will expand your financial options for you and your business.