: Many insurers use credit-based insurance scores to help set your premiums for auto or home coverage. Hard vs. Soft Credit Checks
A credit check, also known as a credit pull or inquiry, occurs when a business or individual reviews your credit report to evaluate your financial reliability. Common Reasons for a Credit Check credit check for
: Landlords use your credit history to assess the risk of non-payment or lease defaults. : Many insurers use credit-based insurance scores to
It is critical to know which type of check is being performed, as they impact your credit score differently: What Is a Soft Credit Check? Soft Pull vs. Hard Pull especially in finance-related roles
: Employers, especially in finance-related roles, may check credit to verify your identity or assess financial responsibility.