Banks That Start with a Soft Check and Provide Preliminary Information Without Affecting Your Credit Score
Capital One only performs soft inquiries in its pre-approval system. This means that users can see how much credit they can get on which cards before completing their application. Moreover, this system has been using the same algorithm for years, so its prediction accuracy is quite high.
American Express offers personalized card offers through its “Check for Offers” feature using a soft pull. The APR rate displayed on the offer screen is typically nearly identical to the rate received after the application. This allows users to evaluate options without taking on additional risk.
Discover uses soft pulls to show users cards with a “high approval likelihood” during the pre-approval stage. However, according to detailed user reviews, even if pre-approval is granted, there is no 100% approval guarantee; especially inconsistencies in income reported at the last minute can lead to the application being canceled.
Bank of America performs a soft pull in some cases by obtaining permission from the user on the “online prequalification” screen. However, the system occasionally presents different offers to the same user on different days — indicating that the algorithm is updated in real-time based on external factors.
Examples of What Appears to be “Prequalification” but is Actually a Hard Pull
Although some Chase credit cards have a “See If You're Prequalified” button, most users have realized that this is not actually a soft check. Tests conducted on forums have revealed that in some cases, the system performs a hard inquiry in the background and lowers the credit score.
Wells Fargo stated that it only performed soft pulls on card invitations sent under the heading “Pre-selected Offers,” but there have been numerous user complaints about sudden hard checks during the application process. This situation poses a trap for users who do not read the fine print.
Examples from Real User Experiences
According to a post on Reddit, if the message “You're Pre-Approved” appears in the Capital One system, it actually means that the user has not been pre-approved. Even if the system performs a soft pull, it does not offer a serious chance of approval.
A user on the MyFICO forums reported receiving approval for three cards through the American Express pre-approval system, applying for only one, and finding that the other two remained in the system. After a month, they reapplied and received the second card. This indicates that soft pull information is retained in the system for a period of time.
Is it possible to get investment cards and premium cards with a soft pull?
Generally, premium cards (such as Amex Platinum and Chase Sapphire Reserve) require a direct application and do not have prequalification systems. However, some users report that they started with a lower-tier card (such as Amex Blue Cash) and received an invitation after six months.
Cards approved with a soft pull typically have low limits. However, banks like Discover and Capital One send automatic limit increase offers three months after the card is opened — this can be used as a strategy to reach a higher limit without taking on additional risk.
What is the actual impact of a soft pull on your credit score?
The FICO and VantageScore systems consider soft pull inquiries as “viewing” and therefore do not affect your credit score in any way. However, some mortgage or special credit lenders may interpret too many soft checks as “credit shopping.”
According to Experian data, some banks may interpret having more than 10 soft pulls in a year as a “tendency to change credit habits,” which could have indirect effects on application evaluations. While this typically doesn't reflect on your credit score, it can make a difference in card approvals.
Why Are Not All Soft Pulls the Same?
While banks like Capital One and Discover perform soft checks directly through TransUnion or Experian, some banks use their own internal scoring algorithms. These systems can be more “biased” based on external data; for example, if you have a history of late payments, you may be denied even if your external score is good.
Some banks use soft pulls to look only at your “current credit relationships,” while others also create a risk score based on your spending habits and income statements. As a result, not all pre-approvals offer the same level of transparency.
Fintech Companies Using Soft Pulls and Modern Approaches
Apple Card (in partnership with Goldman Sachs): Only a soft pull is performed on the application screen, and the approval status, limit, and APR are clearly displayed to the user. If the user does not complete the application at this stage, their credit score is not affected. Apple's approach stands out as a transparent alternative to traditional banks' “hidden terms.”
Petal Card performs a preliminary assessment using soft pulls for users with no or poor credit history. However, the assessment is not based solely on credit reports but also on the individual's bank transactions and income-expense patterns. This system, known as “cash flow underwriting,” is gaining traction in developed countries as an alternative to traditional scoring systems.
Some new-generation cards, such as TomoCredit, do not check credit scores at all. Instead, they request access to the user's bank accounts and analyze their payment capacity directly based on their monthly cash flow. Tomo's system issues cards without even performing a soft pull, as it completely bypasses credit reports. Fintech companies like Avant and Upgrade offer hybrid products that resemble credit cards but primarily feature credit limit capabilities. These companies only perform a soft check before application but differentiate themselves from traditional cards by offering a “fixed payment” structure after the card is issued.
The Most Advantageous Cards and Bonuses Available with Soft Checks
Discover it® Cash Back: One of the most generous cards available after a soft pull. Thanks to its feature of doubling all cashback in the first year, it offers serious savings opportunities, especially for users who shop at grocery stores and online.
Capital One QuicksilverOne: The approval process begins with a soft check. It is preferred by users with weak credit history but regular income due to its 1.5% fixed cashback rate and the possibility of increasing the limit. Apple Card integrates cashback benefits with Apple Pay. With up to 3% cashback, it is particularly attractive for users with a strong Apple ecosystem in the US. Although the cashback is lower when the card is used physically, it is quite advantageous for online transactions.
Critical Mistakes Users Make Even When a Soft Check Is Performed
Applying for multiple cards “on a trial basis” because a soft check is performed can cause banks to classify you as a “risky user.” In particular, performing pre-approval checks for 3-4 different cards within the same week can give the impression that you are “desperate for credit.”
Some users rely on soft pull results and exaggerate their income when applying. However, when the application is completed, the system switches to a hard pull, and any inconsistencies are detected. Even if this does not result in a credit score drop, it can be recorded as a “malicious application” by banks.
Many users who receive a positive prequalification result apply for a card, thinking, “I'm already approved,” and select a high spending limit. This can lead to a low credit limit being approved and disappointment. It is recommended to make realistic choices.
Technological Differences Behind Soft Pull Systems
Some banks only obtain data from TransUnion, while others work with different agencies such as Experian or Equifax. This can result in different scores and recommendations for the same user in different systems. For example, a user with a score of 690 on TransUnion may have a score of 720 on Experian.
Fintech companies use artificial intelligence-powered “behavioral underwriting” systems instead of traditional credit reports. These systems analyze not only credit history, but also micro behaviors such as online payment habits, use of automatic payments, and bill payment delinquency rates.
Differences in Soft Pull Legislation in the US, UK, and Canada
In the US, the Fair Credit Reporting Act (FCRA) of 1970 does not require banks to notify users of soft inquiries. This means that banks can send you pre-approval offers without your knowledge, and these inquiries will not affect your credit score. However, banks must obtain “prescreen permission” from you beforehand—this permission is typically granted automatically when you apply for a card.
In the UK, under Financial Conduct Authority (FCA) regulations, companies must clearly state that a soft check will not affect your credit score. Additionally, these inquiries typically require explicit consent via a checkbox on the website. Soft checks cannot be conducted without the user's knowledge. In Canada, soft pull inquiries appear in a separate section of Equifax or TransUnion reports, but these inquiries do not affect your credit score. However, some employers or landlords may comment on the frequency of soft checks when reviewing these reports. This can affect your perceived reliability, especially if you have accumulated fintech applications.
“Approved” Then Rejected: How Legal Is It?
In the US, many banks present pre-approval results as “final approval,” but these are not legally binding. Companies like Capital One and Discover clearly state on their screens that “Pre-Approval is not a guarantee of approval.” Therefore, consumers cannot appeal if they are denied after applying.
On platforms like Reddit and MyFICO, hundreds of users report being denied despite receiving approval after a soft pull, citing reasons such as income document discrepancies, Social Security number mismatches, or previously undiscovered debts discovered at the last minute. Old hospital debts and unpaid student loans are among the reasons that are often discovered at the last minute during the approval process. Some users who are rejected after applying complain to banks, saying, “But I received pre-approval.” However, banks can take advantage of legal loopholes in such cases, stating that “the decision has changed based on new information.”
Are Soft Pulls Visible in Terms of Consumer Rights?
In the US, credit report providers (Experian, TransUnion, Equifax) are required to provide users with a free credit report once a year. However, most of these reports only list hard inquiries. Soft inquiries are usually listed under the “hidden” tab and are overlooked by many users.
In the UK, users can obtain free credit reports weekly through Clearscore, Experian, or Credit Karma UK. These platforms also display soft checks and provide users with information such as “Who accessed it, when, and why.” Similar systems in Canada have a lower level of transparency.
Consumer Misconceptions About Pre-Approved Offers
The belief that “I got pre-approved, so the card is mine” is still very common. However, a soft pull is based solely on an analysis of past data, and the bank does not see your current financial situation in real time. If the information you provide on your credit card application differs from the information obtained during the soft check, the system may decide to cancel your application.
Some users receive pre-approval from both Capital One and Discover on the same day and submit both applications. However, the system may interpret these two applications submitted within a few minutes as “possibly rejected by other banks” and reject the second application. This means that the algorithms also monitor other banks.
Future Trends Based on the Soft Pull System
With the development of open banking systems, behavioral analytics is becoming more important than credit scores. The entry of tech giants such as Apple and Google into the financial sector will lead to the soft pull system being replaced by more personalized systems that perform real-time risk analysis.
“Buy Now, Pay Later” (BNPL) systems currently enable transactions without soft pulls or any credit checks. However, in some countries, these systems are being regulated due to their contribution to rising debt levels. In the near future, the widespread adoption of “controlled BNPL” systems requiring soft pulls is expected. In the US, some fintech companies are experimenting with completely eliminating credit scores and granting credit based solely on user behavior. In this model, there is no “soft check” either, as the system labels you as “risky” or “reliable,” and decisions are made based on this label.