Soft Credit Checks vs. Hard Credit Checks: What Clinics Need to Know
One of the first questions patients ask when applying for financing is:
“Will this affect my credit score?”
It’s an important concern — and one your team should feel confident addressing.
The good news:
Most modern patient financing platforms use a soft credit check for the initial application.
This allows patients to see their options without risking their credit.
Understanding how soft and hard checks differ helps your clinic introduce financing clearly and build trust at checkout.
What is a soft credit check?
A soft credit check (or “soft pull”) is a type of inquiry that:
- Does not impact the patient’s credit score
- Does not show up on their credit report as a new credit application
- Returns results instantly
- Is used for prequalification and early approval decisions
Common examples of soft checks:
- Checking your credit score through apps like Credit Karma
- Pre-approval offers from lenders
- Most “Pay in 4” and short-term BNPL applications
- Initial patient financing applications inside clinics
Soft pulls allow a patient to explore monthly payment options with zero credit risk.
This is why clinics see dramatically higher willingness to apply when they clarify this upfront.
What is a hard credit check?
A hard credit check (or “hard pull”) is a more detailed inquiry used when someone formally accepts and activates a credit product.
Key characteristics:
- May temporarily lower a patient’s credit score
- Appears on their credit report
- Usually required for traditional loans or long-term financing
- Happens only when the borrower agrees to move forward
In the context of patient financing:
A hard pull is never used during the initial in-clinic prequalification.
It is only used if the lender requires it for a long-term loan the patient chooses to accept.
How modern financing platforms handle credit checks
This is where things vary by lender, but the pattern is consistent industry-wide:
✔ Initial application → soft pull
Used for:
- Prequalification
- Quick decisions
- Showing monthly options
- Zero impact on the patient’s credit
✔ Loan acceptance (certain long-term plans) → may require hard pull
This depends on:
- The lender
- The loan amount
- The repayment term
- Regulatory requirements
Not every lender uses hard pulls, and many use soft-only models for short-term or low-ticket plans.
What your clinic should communicate to patients
Patients rarely need deep details.
They simply want to know:
“Can I check my options without hurting my credit?”
Your team can confidently say:
- “Yes — the initial check is a soft pull and does not affect your credit score.”
- “If you decide to move forward with certain long-term plans, the lender may perform a hard pull at that stage.”
- “You’ll always see your options first, with no impact to your credit.”
This keeps the conversation accurate, transparent, and pressure-free.
Why soft pulls matter for treatment acceptance
1. Patients feel safe applying
If they believe applying will hurt their score, many won’t even try.
When they learn it's a soft pull, their response changes to:
“Okay, let’s see what I qualify for.”
2. Instant decisions keep momentum
Soft pulls return decisions in seconds, allowing your team to:
- Present the treatment plan
- Show monthly options
- Schedule next steps
- Close the case while the patient is still engaged
3. Less awkwardness at checkout
Patients can explore monthly payments privately and comfortably.
Staff can say:
“We’ll check your options — this won’t impact your credit.”
It removes friction for both parties.
A simple script for your front desk or treatment coordinator
Use clear, friendly language like:
“We use a soft credit check to show your monthly options.
It won’t affect your credit score, and you’re not committing to anything yet.”
Or:
“This is just a prequalification. If you choose a long-term plan, some lenders may do a hard pull later — but the initial check is soft only.”
This balances reassurance with accuracy.
How Luma approaches credit checks
Luma’s financing workflow is designed around soft credit checks for the initial application.
This ensures:
- Patients can check their options safely
- Approvals return instantly
- Staff can introduce financing confidently
- Clinics avoid unnecessary friction during checkout
If a patient chooses a long-term plan offered by a specific lender, that lender may require a hard pull at acceptance — but only after the patient has reviewed and selected their final terms.
Our goal is simple:
Make monthly payments as easy and approachable as any other payment option.
Final takeaway for clinics
Soft credit checks are a cornerstone of modern patient financing.
They allow your clinic to:
- Introduce monthly payments without pressure
- Reassure patients they won’t hurt their credit
- Increase financing application rates
- Improve case acceptance for larger treatments
- Keep the checkout experience smooth and modern
By understanding the difference between soft and hard checks, your team can communicate clearly and guide patients toward the treatment they need — without fear or confusion.