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Credit pull
Also called credit inquiry, hard pull, soft pull, credit check.
A request for your credit file, either a soft inquiry that does not affect scores or a hard inquiry that does and is visible to other lenders.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
A soft pull happens without your application for new credit, or with your permission for pre-qualification. It shows on your own report but not to other lenders, and it does not affect the score. A hard pull is recorded when you apply for credit, is visible to others, and can reduce the score modestly.
The normal sequence in alternative funding is a soft pull at application to price and screen, then a hard pull at or near funding. Business credit reports on the entity are a separate matter and do not affect the owner's personal score, though they are often pulled at the same time.
Personal credit is pulled on business applications because the owner is guaranteeing, and because for smaller businesses the owner's payment behavior is the best available predictor. Under the Fair Credit Reporting Act, a permissible purpose is required, which is why the application contains a consent paragraph.
Regulation B applies to business credit applications and requires notification of the action taken, with the specific obligations depending on the applicant's revenue and whether reasons are requested in writing. Whether a receivables purchase counts as credit for these purposes is contested, and practice varies across the market.
Where this one catches people
The rate-shopping window that lets multiple inquiries count as one applies to mortgage, auto and student loan shopping under the common FICO models. It does not reliably extend to business funding applications. When a broker submits your file to fifteen funders and several pull hard, you can accumulate a cluster of separate inquiries in a week. Ask how many funders will receive the file and which of them pull hard before you consent.
Where you will meet this term
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Credit pull — common questions
What does credit pull mean?
A request for your credit file, either a soft inquiry that does not affect scores or a hard inquiry that does and is visible to other lenders.
Where does credit pull catch people out?
The rate-shopping window that lets multiple inquiries count as one applies to mortgage, auto and student loan shopping under the common FICO models. It does not reliably extend to business funding applications. When a broker submits your file to fifteen funders and several pull hard, you can accumulate a cluster of separate inquiries in a week. Ask how many funders will receive the file and which of them pull hard before you consent.
Is credit pull the same as an interest rate?
Credit pull is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does credit pull apply to?
Merchant Cash Advance, Working Capital, Term Loan, Business Line of Credit, SBA Loan, Equipment Financing.
Is there a worked example of credit pull?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside credit pull?
Adverse action notice, Approval, Broker, Business credit score, Creditworthiness.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.