What’s the difference between a soft and hard credit search?

Whenever you apply for any form of credit – be that a loan, a credit card or a mobile phone contract – the lender will run a check on you with one of the major credit reference agencies. That check will help the lender decide whether you represent a safe prospect and that you are likely to meet all of your repayments on time. Alternatively, if you have had problems in the past and perhaps have some late repayments, defaults or county court judgements on your file, then it is more likely that you will be turned down for new borrow ing. Such a search is often referred to as a “hard” credit check because it is an extensive and detailed look at your credit history and a record of the search is left on your file. In fact, every time that you apply for credit and a lender checks your credit record, that search is added to the record. And as a rule of thumb, the more searches there are on your file, the less likely it is that you will be approved for further borrowing. What’s a sof


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