soft credit search vs hard credit search

ellison007

Can anyone tell me the difference between a soft search and a hard search? Many AIP's for mortgages offer soft searches (TSB, Halifax, NatWest) & also for some credit cards (e.g. Barclaycard).


I just don't get it tho', what can a potential lender see on a hard search which they cannot see on a soft search?


Any thoughts anyone?


Many thanks,

PaulW922

A potential lender can see the same information of they ask the agency for it. The status of the search is more relevant to the purpose for which it is made. A soft search cannot be seen by other potential lenders in the future. Many lenders regard a high number of searches in a short period as negative information, hence the existence of soft searches. Without them you could not, for example, shop around for a mortgage quote. Other soft searches include ID/anti money laundering checks, insurance quotes etc

In practice however a soft search (such as one telling you how likely you are to be accepted for a credit card) is often more basic than the full search.