Businesses rely on soft credit checks for various reasons:
Employee Screening: Employers may perform soft credit checks during the hiring process to assess the financial responsibility of potential employees, particularly for roles that involve handling money or sensitive information. Marketing and Pre-Approvals: Companies use soft credit checks to identify individuals who may qualify for their products or services, such as credit cards or personal loans, and to extend pre-approval offers. Vendor and Partner Evaluation: Businesses might conduct soft credit checks on potential vendors or partners to ensure they are financially stable and reliable. Customer Insights: Businesses may use soft credit checks to gain insights into their customers' credit profiles for better targeted marketing and personalized services.