Cred.ai is a financial technology company that offers a variety of innovative banking and financial services to its customers. One of the most common concerns for individuals considering opening a new account or applying for a credit card with a financial institution is the impact on their credit score. This often comes down to the question of whether the company uses a hard pull or soft pull when checking an individual’s credit history.
So, does Cred.ai do a hard pull? The answer is yes, Cred.ai does conduct a hard pull when customers apply for a credit card or a loan. This means that the company will request a full credit report from one or more of the major credit bureaus, which can have a temporary negative impact on the individual’s credit score.
While a hard pull can lead to a small, temporary decrease in a person’s credit score, it is a necessary step for financial institutions when making lending decisions. It allows them to assess the risk and decide whether to approve the individual for a line of credit or loan, and if so, at what terms and interest rates.
It’s important for potential applicants to understand the difference between hard and soft pulls. A soft pull, also known as an inquiry or a soft inquiry, is when a person or company checks your credit report as a background check, often without your consent. Soft pulls do not affect your credit score, and may occur when a company offers you a pre-approved credit card or loan offer. On the other hand, a hard pull, also known as a hard inquiry, occurs when you apply for credit such as a credit card, loan, or mortgage and the lender checks your credit report to make a lending decision.
So, while a hard pull with Cred.ai may have a temporary impact on your credit score, it’s important to keep in mind that responsible credit usage and on-time payments can help counteract this effect over time. Additionally, Cred.ai offers attractive benefits and features, such as personalized financial tools, competitive rewards, and user-friendly mobile app, which may make it worth considering despite the hard pull.
In conclusion, while Cred.ai does perform a hard pull when evaluating credit applications, individuals should weigh the potential impact on their credit score against the benefits offered by the company. Understanding the difference between hard and soft pulls and how they can affect your credit score is essential in making informed decisions about your financial future.
