Comparison

Soft pull vs hard pull: the differences that decide it.

A neutral side-by-side, with the arithmetic, so you can pick the structure that fits.

✓ Checking what you qualify for does not affect your credit score.

The short version

A credit check can be a gentle look or a formal inquiry. Knowing which one you are agreeing to before you apply protects your score and your leverage when shopping.

Soft pullA review that does not affect your credit score and is not visible to other lenders.

Hard pullA formal inquiry that appears on your credit file and may lower your score slightly.

When it happensSoft: prequalification and eligibility checks. Hard: a formal application for credit.

Effect of severalSoft: none. Hard: several in a short window can add up.

What it showsSoft: a summary. Hard: the full detail a lender needs to underwrite.

Your choiceYou can usually check eligibility with a soft pull before committing to a hard pull.

For advancesMany advances weigh deposits more than credit, so the inquiry type is often less of a concern.

A worked example

Illustrative arithmetic

A salon owner depositing about $36,000 a month asks for $15,000 for a refit. At a 1.26 factor the payback is $18,900, a cost of $3,900. Over roughly 5 months that is about $180 per business day, or close to 10% of monthly deposits.

Total payback on the advance: $18,900.
Cost: $3,900.
Roughly $180 per business day, or about 10% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

How to decide

Start with an eligibility check that does not affect your score.
Ask each provider in advance which type of pull they use and when.
Apply for several offers inside a short window so inquiries are treated together.
If your score is already thin, prefer providers that read deposits first.

Where people go wrong

Applying everywhere at once without asking about the pull.
Assuming all inquiries are the same.
Avoiding a good offer because of a one-point score dip.

Common questions

Does checking eligibility affect my credit score?

Checking what you qualify for here does not affect your credit score.

How long does a hard pull last on my file?

It appears on your credit report for a period and its effect fades over time.

Do advances always hard-pull?

Not necessarily. Ask at the start.