Soft Credit Checks Explained

If you’re applying for a payday loan, you may see references to soft credit checks and hard credit checks.
This page explains what a soft credit check is, how it works in the UK, and how it differs from a hard credit check – so you can understand how your credit file is affected at each stage.

What Is a Soft Credit Check?

A soft credit check (also called a soft search) is a way for lenders to assess eligibility without leaving a visible mark on your credit file..

Soft credit checks are commonly used to:

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Assess initial eligibility
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Verify identity details
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Review high-level credit information
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Help lenders make responsible lending decisions

Importantly, soft credit checks do not affect your credit score.

Who Can See a Soft Credit Check?

Soft credit checks are:

  • Visible to you when you view your own credit report
  • Not visible to other lenders
  • Not used in lending decisions by third parties

This means checking your eligibility using a soft search does not signal risk to other lenders.



Which Credit Reference Agencies Are Used in the UK?

In the UK, lenders may use one or more Credit Reference Agencies (CRAs), including:

Each agency holds slightly different information, which is why credit reports can vary depending on the provider used.



How Cashfloat Uses Soft Credit Checks

Cashfloat uses soft credit checks as part of its eligibility assessment process. This allows us to:

  • Assess whether an application meets initial criteria
  • Support responsible lending decisions
  • Reduce unnecessary credit file impact for applicants

Checking eligibility with Cashfloat does not leave a permanent mark on your credit record.



When Does a Hard Credit Check Happen?

A hard credit check (also known as a hard search) is different. Hard credit checks:

  • Are visible to other lenders
  • May temporarily affect your credit score
  • Typically occur only when you choose to proceed with a credit agreement

At Cashfloat:

A hard credit check is only carried out for applications that pass affordability, credit and fraud checks and choose to proceed to a funding decision. This ensures applicants can review their options before any permanent credit search takes place.



Does a Soft Credit Check Affect My Credit Score?

No. A soft credit check:

  • Does not lower your credit score
  • Does not affect future lending decisions
  • Does not appear as a hard search

You can check eligibility using a soft search without worrying about long-term credit impact.



Why Do Lenders Use Soft Credit Checks?

Soft credit checks help lenders balance:

  • Responsible lending obligations
  • Fraud prevention
  • Customer protection

They also help reduce unnecessary harm to applicants who are exploring their options. Using soft searches at the eligibility stage is now considered best practice in regulated UK lending.



Understanding Credit Checks and Responsible Borrowing

While soft credit checks are low-impact, borrowing decisions should always be made carefully. If you’re unsure how credit checks work or how borrowing may affect you, free and impartial guidance is available from MoneyHelper.



Considering a Payday Loan?

If you want to check whether you’re eligible for a payday loan with Cashfloat, you can do so without obligation.

Check your eligibility for a payday loan

Soft credit check • No obligation • UK direct lender