Most patient financing providers now pre-qualify with a soft pull, which makes patients more willing to apply. A hard pull may still occur when the loan is accepted.
From our data: 9 of 14 patient financing providers we track use a soft pull.
Soft and hard inquiries
A soft inquiry is visible only to the consumer and does not change the credit score. A hard inquiry is recorded when credit is actually applied for and can lower the score by a few points for a time.
In patient financing, prequalification is normally a soft inquiry. With a credit card product, submitting the full application is a hard inquiry. Installment lenders such as Cherry state that they use only a soft check.
Why practices care
Patients are more willing to check their options when it carries no risk to their score, so soft-check prequalification raises application rates.