2 min read
What each search does
A soft search checks your credit position without leaving a mark that other lenders can see. Lenders use them for quotes, agreements in principle and eligibility checks. A hard search is a formal footprint, logged on your file and visible to anyone who searches next; lenders run one when you make a full application or accept an offer.
Why the difference matters
Soft searches never affect your score, so you can gather several quotes freely. Hard searches each leave a small, temporary mark, and several in a short window can look like a company scrambling for cash — which underwriters read as risk. This is why you save the hard search for the offer you intend to take.
Checking which one applies
Always ask a lender which type they use at each stage. Reputable business lenders confirm that quotes and agreements in principle are soft. You can also monitor your own file — the business credit report guide shows how — so you know exactly what has been recorded.
Frequently asked questions
Does a soft search ever show on my report?
You can see your own soft searches, but other lenders cannot. They have no effect on your score and are not treated as applications.
How long does a hard search stay visible?
Typically around 12 months on your business credit file, though its impact fades well before it drops off. One or two are unremarkable; a cluster in weeks is what draws attention.
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