Why Soft Credit Checks Matter When You're Comparing Credit Cards
Applying for a new credit card is exciting, but it can also be a little scary.
Maybe you’re interested in a card’s rewards, travel perks or insurance benefits, but still wonder: What happens if I apply and don’t get approved?
At the root of this uncertainty is a pesky step known as the credit inquiry, sometimes called a credit check or credit pull.
A hard credit check can have a negative — though temporary — effect on your credit score. Anxiety around hard credit checks is understandable — no one wants to ding their credit just to be rejected for the card they want.
That’s why some lenders are adding more transparency to the application process, and giving you a chance to pre-qualify through a soft credit check that won’t affect your credit score.
Soft credit check vs. hard credit check
A soft credit check is a review of your credit file that doesn’t affect your credit score.
A hard credit check is typically tied to a formal credit application and may temporarily affect your credit score.
Soft and hard checks both involve a review of information in your credit report, like payment history, account balances and credit limits. The bigger differences are why the information is pulled, whether it can affect your score and if other lenders can see the inquiry.
Lenders use a soft credit check to gauge your eligibility or creditworthiness without affecting your score. It acts as an initial “background check” to see if you qualify for specific offers.
Type of credit check | What it tells the lender | When it might happen | Credit score impact |
|---|---|---|---|
Soft credit check | Your credit score, payment history, credit utilization ratio, account details, and any info that's in the public record, such as bankruptcy. | When you check your own credit, receive some pre-approval offers or check eligibility through certain tools. | None. Not generally visible to other lenders. |
Hard credit check | Your credit score, payment history, credit utilization ratio, account details, and any info that's in the public record, such as bankruptcy. | When you formally apply for credit, such as a credit card, loan or other lending product. | May temporarily affect your credit score. Other lenders can see it on |
How the soft credit check process actually works
To demonstrate what it feels like to go through a soft credit check, let’s take a look at American Express’s Apply With Confidence feature.
Apply with Confidence is notable because it brings a pre-qualification experience to personal credit cards — an industry where soft-check shopping tools still aren’t especially common in Canada.
Note: American Express says the soft-check process is currently available for online consumer card applications only — it's not available for business cards or if you apply over the phone.
Here’s how it works:
Go online and find the American Express card you want to apply for. Look for the 'Apply with Confidence' box and tap the 'Apply Now' button.
Provide your details. Enter required personal details and review important terms and conditions.
American Express checks your eligibility. You’ll immediately find out whether you qualify for the card, with no impact to your credit score.
You decide whether to submit the application. If you’re eligible and want to continue, you can submit a full application. At that point, a hard credit check may occur.
Example👉That last step is important: this isn’t a ‘no credit check’ experience. Using Apply with Confidence just means you get more information before deciding whether to proceed.
What Apply with Confidence does — and doesn’t — tell you
It helps you understand... | It won't tell you... |
|---|---|
Whether you’re eligible before you submit a full application. | Whether the card is a good fit for your spending habits. |
Whether you can proceed without an initial credit score impact. | What your credit limit will be. |
If it’s worth continuing with the application. | Whether you can afford to carry a balance. |
Try it! Apply with Confidence to these American Express Cards
Rewards rate 1x-2x Points | Rewards rate 1x-5x Points | Rewards rate 2%-4% |
Annual fee $799 | Annual fee $191.88 | Annual fee $119.88 |
Recommended credit score N/A | Recommended credit score 660-724 | Recommended credit score 660-724 |
Who benefits from a soft credit check?
A soft-credit check option may be especially helpful if you're:
Comparing several cards and want to avoid unnecessary hard inquiries.
Unsure whether your credit profile meets a card’s requirements.
Planning another major credit application, such as a mortgage or auto loan, and want to be careful about adding new hard inquiries to your credit report.
Want more clarity before applying for a card with a higher annual fee or premium benefits.
NerdWallet’s bottom line on soft credit checks
Features like Apply With Confidence can make the application process feel more transparent, but they’re not a shortcut — you still have to do your homework and borrow responsibly.
Before you proceed, consider:
Eligibility isn’t the only factor. A card may still be a poor fit if the annual fee, rewards structure or benefits don’t match your spending habits.
A hard check will still happen. The soft-check stage helps you decide whether to continue; it does not necessarily eliminate a hard inquiry if you submit the application.
The feature may not apply to every product. Right now, the soft-check process is available for American Express personal cards but not yet for business cards.
‘Approved’ doesn’t mean ‘you can afford this.’ A new credit card can be useful, but carrying a balance can lead to interest charges. As always, evaluate your full financial picture before taking on more debt.
Frequently asked questions
Does American Express Apply with Confidence exist in Canada?
Yes, the Apply with Confidence feature first became available to select Canadian users in 2025. Now, it’s a standard option for most of American Express’ personal credit cards.
Does prequalifying mean a credit card is right for me?
Not necessarily. You still need to compare fees, rewards, interest rates, acceptance and your ability to pay the balance.
Does Apply With Confidence mean there’s no hard credit check?
No. It means the eligibility check won’t impact your credit score. A hard check may still occur if you submit the full application.