Exploring Homeownership Shouldn’t Be Hard: INHP Switches to Soft Credit Pulls
INHP recently updated its registration process by eliminating the hard credit pull. Now, when you register with INHP, we will run a soft credit check for $35 to evaluate your financial status without negatively impacting your credit score.
Why does INHP check your credit? Knowing your credit history will help us assess your financial situation so we can determine your best path to homeownership. This change benefits you in two ways: 1) we can discover what we need to know without impacting your credit score, and 2) you can save money at registration!
Here’s the difference between hard and soft credit pulls:
Soft credit pulls: A soft credit pull doesn’t impact your credit score. It’s a more informal check that may occur when you check your credit or when a lender pre-qualifies you for a loan offer.
Hard credit pulls: When a lender checks your credit report as part of the loan application process, it’s called a hard credit pull. This type can lower your credit score and appear on your credit report for up to two years. Multiple hard pulls in a short time period can make lenders think that you are a higher credit risk.
Key differences:
- Consent: For a hard pull, a lender needs permission to check your credit, however, they do not for a soft pull.
- Credit score: Hard pulls may cause your credit score to drop up to five points whereas soft pulls do not affect your score.
- Visibility: Both pulls appear on your report for up to two years, but soft pulls are typically only visible to you and not shared with other creditors or lenders.
- Cost: Soft pulls are generally less expensive than hard pulls.
Still thinking about registration? If you want to ask an INHP staff a question before completing registration, we welcome you to contact us first. Ready to register? Get started here.
