What Is a Soft Credit Check for a Business Loan?

This post was originally published on On Deck

There’s a lot of jargon in business financing and it can be difficult to feel like you’ve got a solid understanding of every term. The difference between a hard and soft credit check can be one of the more confusing things to learn.

So what is a soft credit check, and how does it impact your business credit?

Let’s break it down and explore how this knowledge can help you navigate the challenges of business financing successfully.

What Is a Soft Credit Check for a Business Loan?

A soft credit check for a business loan usually means the lender is pulling a small overview of your personal credit history. It allows the lender to gauge your creditworthiness without the impact to your credit file that comes with a hard check. In general, soft credit checks of personal credit won’t impact your FICO score.

A hard credit check for a business loan, on the other hand, could include a check on your personal credit, your business credit or both. For personal credit, a hard credit check means the lender has requested access to your complete credit file. A hard credit check on your personal credit can impact your score.

When it

Read the rest of this post, which was originally published on On Deck.

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