How can you do a credit inquiry and not affect my credit?

A soft inquiry is when someone checks your credit report for any number of reasons (rent, background check, pre-approval, etc.), and it does not affect your credit score. When you check your rate for a Payoff Loan, we perform a soft inquiry.

A hard inquiry is when a financial institution (a bank, Payoff, credit card or mortgage company, etc.) checks your credit report before giving you a loan. Unlike soft inquiries, hard inquiries can affect your credit score and remain on your credit report for two years. For added security, we do a hard inquiry right before you finalize your Payoff Loan to check for new unsecured personal loans as well as bankruptcies and delinquencies.

- A hard inquiry may impact your credit score, but good news, Payoff Members see an average increase of 40 points † to their credit score.

† Based upon a study of Payoff Members between October 2015 and February 2016. Payoff Members who paid off at least $5,000 in credit card balances, after receiving a Payoff Loan™, saw an average increase in their FICO® score of 40 points. Individual results may vary.


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