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What’s a Soft Credit Pull—and Why It’s Better for Pre-Approval?
- Dakota DeRego
- Aug 5
- 2 min read
When it comes to applying for credit—whether it’s for an auto refinance, a credit card, or a personal loan—you’ve probably heard the terms soft pull and hard pull. But what do they really mean, and why should you care?
If you're shopping around for the best auto refinance deal, knowing the difference can save you from unnecessary credit score dings. Let’s break it down.
🔍 What Is a Soft Credit Pull?
A soft credit pull (or soft inquiry) is a basic, no-impact check on your credit. It gives lenders a quick snapshot of your credit history—enough to pre-approve you or give a rate estimate—but it does NOT affect your credit score.
Soft pulls typically happen when:
You check your own credit score
A lender does a pre-qualification check
You’re pre-approved for an offer (like a credit card or loan)
A potential employer does a background check
In other words, a soft pull is a risk-free way to explore your loan options without triggering any negative impact.
What Is a Hard Credit Pull?
A hard credit pull (or hard inquiry) occurs when a lender reviews your full credit report to make a lending decision. This type of inquiry can affect your credit score—usually by a few points.
Hard pulls happen when:
You officially apply for a loan or credit card
A lender processes a mortgage, auto loan, or refinance application
You accept a final offer and move forward with financing
Too many hard pulls in a short period of time can signal to lenders that you're desperate for credit, which can temporarily lower your score or hurt your chances of approval.
🚗 Why Start with a Soft Pull for Auto Refinance?
When you're looking to refinance your car loan, the last thing you want is to lower your score just by shopping around. That’s where soft pulls shine.
Benefits of starting with a soft pull:
✅ No impact on your credit score
✅ Lets you compare rates before committing
✅ Helps you pre-qualify without pressure
✅ Gives you peace of mind before applying
✅ Great for borrowers rebuilding credit
It’s like test-driving a loan—you get a real sense of what you qualify for, without having to sign on the dotted line (or take a hit to your credit).
💡 Pro Tip: Choose Lenders That Use Soft Pulls for Pre-Approvals
Not all lenders or platforms offer soft pull pre-approvals. Make sure you work with a provider who clearly states they use soft credit checks during the initial process.
At Digital Auto Refi, our pre-qualification process is 100% soft pull—meaning you can check your rate in seconds with no risk to your credit.
✅ Bottom Line
If you're considering refinancing your car loan, start with a soft pull. It’s the smart, low-risk way to explore your options, find the best rate, and move forward with confidence.
🔎 Ready to see what you qualify for without hurting your score?👉 Check your rate with a soft pull – no impact to credit
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