When is a Soft Pull Used?

Soft pulls are often used for pre-screening

A soft pull typically occurs when you check your own credit report whether you are considering buying a house, car, solar panels, renting an apartment, getting any form of insurance or planning any number of borrowing decisions. Furthermore, it can also occur if you’re starting a new job and give your employer permission to check your credit as part of a background check, or if financial companies you already work with decide to check your credit.
 

This can happen, for example, in the case of preapproved credit cards—which you are qualified for using soft pulls. 

However, due to their nature, you can also make use of soft pulls to get a better understanding of how lenders and institutions view your financial history. You can do so by checking your credit score routinely using a service such as Credit Karma. 

Services such as these use soft pulls to be aware of their creditworthiness as they plan their lives. Creditworthiness is critical when it comes to many important aspects of life such as buying a home or vehicle, or taking out a business loan.