Many customers wonder whether Katapult performs a hard inquiry, also known as a hard pull, when evaluating their creditworthiness. So, let’s take a closer look at whether Katapult does indeed conduct a hard pull and understand the implications for potential customers.
1. What is a hard pull?
A hard pull, often referred to as a hard inquiry, occurs when a lender checks an individual’s credit report as part of their loan application evaluation process. This type of credit inquiry can slightly impact a person’s credit score and remains on their credit history for up to two years.
2. Katapult’s credit evaluation process
Katapult has designed its credit approval process with the aim of helping customers make purchases with minimal hassle. Unlike traditional lenders or credit bureaus, Katapult does not perform a hard pull when reviewing an application, which is excellent news for individuals concerned about potential negative effects on their credit score.
3. Soft pull versus hard pull
It’s essential to understand the distinction between a soft pull and a hard pull. While a hard pull leaves a mark on your credit history, a soft pull does not impact your credit score or financial standing. Katapult relies on a soft pull to assess your creditworthiness, ensuring that your credit score remains unaffected.
Here’s a breakdown of the key differences:
- A hard pull is recorded on your credit report and can affect your credit score temporarily.
- A soft pull does not appear on your credit report and has no impact on your credit score.
- Katapult utilizes a soft pull, offering flexibility and convenience to potential customers.
4. Credit approval process with Katapult
Katapult’s credit approval process is designed to be accessible and user-friendly for all customers. Here is an outline of the steps involved:
- Choose the items you want to purchase.
- Submit your application online or in-store.
- Katapult performs a soft credit check to evaluate your creditworthiness.
- Upon successful approval, you can complete your purchase and enjoy your items.
5. Benefits of Katapult’s soft pull
Katapult’s decision to utilize a soft pull as part of their credit evaluation process offers several advantages for potential customers:
- Minimized impact on credit score: A soft pull does not lower your credit score or leave any lasting effects.
- More accessible approval process: Customers with limited or no credit history still have an opportunity to be approved for financing.
- No risk to creditworthiness: A soft pull safeguards your creditworthiness and ensures peace of mind when applying for leases.
In conclusion, customers can rest assured that Katapult does not perform a hard pull when evaluating their applications. By utilizing a soft pull instead, Katapult promotes accessibility and convenience, allowing customers to enjoy their purchases without unnecessary credit score complications.