Understanding the Difference: Soft Credit Checks vs. Hard Credit Checks

Cashco Financial used to never do credit checks in any of our branches across Canada, nor online. As of this month though, we have started to perform soft credit checks to facilitate the approval process and get more accurate information on what dollar amount is right for each client who takes out a payday loan.

It is important to understand that the credit checks we will be performing going forward are “soft credit checks”. That means that they will not show up on your credit report and will never harm your credit score. On the other hand, hard credit checks can certainly harm your credit score. But try not to worry about these hard credit checks too much because they cannot be performed without your expressed consent. That means that if you don’t want a hard credit check performed on you and your credit report, then simply refuse and it will not be done. However, sometimes having a hard credit check performed is the only way you can qualify for some types of credit or financing.

Soft credit checks and hard credit checks are often referred to as inquiries. Here is a list of examples when a hard inquiry is done vs. when a soft inquiry is done:

Hard Inquiry:

  • Applying for an auto loan
  • Applying for a mortgage
  • Applying for a credit card
  • During the lease agreement process of an apartment
  • Renting a car
  • Getting a credit card limit increase
  • Getting a cell phone with a contract
  • Applying for different short term loans from different lenders within a short period of time

Soft Inquiry:

Building Your Credit is Important

Having good credit is great and makes life so much easier. If you have bad credit or no credit though, getting good credit sometimes seems impossible. Luckily there are companies like Cashco Financial that offer products that are easy to qualify for and can rebuild your credit score quickly and easily. If you are struggling with debts, or a poor credit score, get a Flex Loan from Cashco Financial. With a Flex loan, you can get up to $5, 000 today so you can pay off any debts or bills that have been piling up all at once. Then with affordable instalment payment every two weeks, you can rebuild your credit score. If bi-weekly instalments do not work best for you, no worries because we can set you up with weekly or monthly instalments and anything in between. Our Flex Loans will flexibly fit to you and your exact needs.

Choose Cashco Financial for your financial needs and we will help you get back on the right track for success.


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