Lending Club Hard Pull: What You Need To Know

Lending Club is a loan and credit provider that offers personal loans to cover emergency costs, purchases, or refinancing high-interest debt. When applying for credit, it is important to understand the difference between soft and hard credit checks, as they can impact your credit score differently. A hard credit inquiry, also known as a hard pull, occurs when a lender or company reviews your full credit report during the loan or credit card application process. Lending Club does perform hard credit pulls, but only when you are approved, accept the terms, and your loan is issued.

Soft credit checks do not impact credit scores

LendingClub does not perform a hard credit pull during the account opening process. Instead, they obtain information from a credit bureau to validate your personal information. This request for information does not affect your credit score. However, if you get approved, accept the terms, and your loan is issued, LendingClub will perform a hard credit pull, which can impact your score.

Soft credit checks, also known as soft pulls or soft inquiries, do not impact your credit score. They are commonly performed as part of background checks or pre-approval offers. They may also occur when you check your credit score or when you get pre-qualified or pre-approved for a credit card. Soft credit checks can be initiated by you, an authorized individual, or an organization reviewing your credit report.

Unlike hard inquiries, soft inquiries are not connected to a specific application for new credit. They are only visible to you when you view your credit report. Soft credit checks can be performed without your permission, such as when a credit card issuer checks your credit to see if you qualify for certain offers. Your employer might also run a soft inquiry before hiring you.

While soft credit checks do not impact your credit score, it is important to note that they may or may not be recorded in your credit reports, depending on the credit bureau. Soft inquiries can remain in your credit files for up to two years but typically only impact your score for one year or less.

Hard credit checks can lower credit scores

LendingClub does not perform a hard credit pull when you check your rate for a personal loan. However, they will do a hard credit pull if you get approved, accept the terms, and the loan is issued.

A hard credit check can lower your credit score. This type of credit inquiry is typically initiated by landlords and lenders to evaluate whether you can meet your current and future financial obligations. A hard credit check occurs when you apply for a loan, credit card, or line of credit. It is an indicator of uncertainty and a possible increase in risk for the lender. This is because if someone is trying to get a lot of credit at once (multiple loans and credit cards), it could be a sign that they are unable to pay their existing bills.

Hard credit checks can cause your credit score to dip by a few points, and they may stay on your credit report for up to two years. However, they will only affect your score for one year or less. Credit scoring models like FICO® Score and VantageScore® will recalculate your scores by a few points. For instance, a single hard inquiry will usually take fewer than five points off your FICO® Score. While hard inquiries can impact your score, other factors, such as responsible credit behaviour, carry more weight in popular credit scoring models.

It is important to note that soft credit checks, which occur when you check your own credit score or when a company wishes to pre-approve you for a loan offer, do not impact your credit score.

Hard credit checks are used when applying for loans

When applying for a loan, a hard credit check is often required. This is also known as a "hard pull" or "hard credit inquiry", and it can lower your credit score. It involves a financial institution, lender, or credit card issuer reviewing your credit report and credit history to assess your ability to meet current and future financial obligations. This information is used to determine your eligibility for their lending products and to make a final decision on your application.

A hard credit check is typically required when you apply for a loan, mortgage, or credit card. While it can slightly decrease your credit score, the impact is usually temporary and may only affect your score for up to a year. Multiple hard inquiries within a short time frame are more likely to have a significant impact on your score. This is because lenders and credit-scoring models view multiple credit applications in a short period as a sign of increased risk. Therefore, it is generally recommended to apply for credit only when necessary and to space out your applications.

It is important to distinguish between hard and soft credit checks. Soft credit checks, or soft pulls, do not impact your credit score and are often used for pre-approvals or background checks. They provide an initial assessment of your eligibility without leaving a marker on your credit report. Soft credit checks are commonly used to match applicants with potential lenders and to provide an indication of the likelihood of approval.

LendingClub, for example, performs a soft credit check when you check your rate for a personal loan. However, if you proceed with the application and it is approved, LendingClub will conduct a hard credit pull, which may impact your credit score. Therefore, while checking your rate with LendingClub will not affect your credit score, proceeding with the application and receiving approval may result in a hard credit pull that can influence your score.

In summary, hard credit checks are an essential part of the loan application process, providing lenders with a comprehensive assessment of your creditworthiness. While these inquiries can slightly lower your credit score, their impact is generally temporary, and spacing out your applications can help mitigate their effect. Soft credit checks, on the other hand, provide an initial screening without impacting your score, making them useful for pre-approvals and matching applicants with suitable lenders.

LendingClub does not do hard credit pulls when opening an account

LendingClub does not perform a hard credit pull when opening an account. However, they do obtain information from a credit bureau to validate your personal information. This request for information does not affect your credit score.

A hard credit pull, also known as a hard credit check or hard inquiry, is a type of credit information request that occurs when a lender or company reviews your full credit report during the loan or credit card application process. This type of inquiry can cause a temporary decrease in your credit score and is used to determine how much risk you present as a potential borrower.

On the other hand, a soft credit pull or soft inquiry is a type of credit check that does not impact your credit score. Soft pulls are often used for pre-approvals, background checks, or during the prequalification process for a loan. While soft pulls do not affect your credit score, they can show up on your credit report and may remain there for up to two years.

LendingClub specifies that they only perform a hard credit pull if you get approved, accept the terms, and your loan is issued. Therefore, when opening an account with LendingClub, there is no need to worry about a hard credit pull affecting your credit score.

It is important to note that while a single hard credit pull may have a small impact on your credit score, multiple inquiries may have a more significant impact as they could signal financial distress to lenders.

Hard credit checks may remain on credit reports for two years

LendingClub does not perform a hard credit pull as part of its account opening process. However, they do obtain information from a credit bureau to validate your personal information. This request for information does not affect your credit score. If you get approved, accept the terms, and your loan is issued, LendingClub will do a hard credit pull that could impact your score.

Hard credit checks or hard inquiries are typically initiated by potential landlords and lenders to evaluate whether you can meet your current and future financial obligations. Hard credit checks can lower your credit score and are used when you apply for loans. Soft credit pulls, on the other hand, do not impact your credit score and are often used for pre-approvals or background checks.

Hard credit checks may remain on your credit report for up to two years, but they may only affect your score for one year. According to FICO®, hard inquiries only affect your credit score for a year, but they remain on your credit report for two years. Credit scoring models such as FICO® Score and VantageScore® typically recalculate your scores by a few points after a hard credit check. While hard inquiries can impact your score, other factors, such as timely bill payment and overall debt burden, carry more weight in popular credit scoring models.

The impact of a hard inquiry depends on your credit history and overall credit health. Generally, a single hard inquiry is unlikely to significantly affect your approval for a new card or loan. Multiple hard inquiries in a short period can have a larger impact on your credit and signal financial distress. Lenders and credit scoring models view multiple credit applications in a short amount of time as a sign of risk. Therefore, it is important to space out your credit card applications and only apply for and open new credit accounts as needed.

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