No hard credit check is a phrase that does a lot of work in lending ads, and it’s easy to hear more in it than it actually says. (You’ll also see it written as no hard credit inquiry. Same thing.) Some people take it to mean nobody’s going to look at their finances. Others hear it as a sign they’ll be approved. It means neither.

Here’s what it does refer to, what it can save you, and what it doesn’t promise.

What’s the difference between a hard and a soft inquiry?

When someone checks your credit report, the credit bureau records it as an inquiry. The Financial Consumer Agency of Canada separates these into two kinds.

Hard inquiries show up on your credit report, can be seen by anyone who looks at it, and affect your credit score. FCAC gives credit card, mortgage, and credit and loan applications as typical examples.

Soft inquiries only appear on the version of your report that you can see, and they don’t affect your score. Requesting your own credit report is a soft inquiry.

FCAC also notes that several hard inquiries close together can make lenders think you’re urgently looking for credit or spending beyond your means. That’s why shopping around carelessly can cost you.

So what does no hard inquiry mean?

It means applying won’t add a hard inquiry to your credit report. No new hard inquiry means no new mark for other lenders to see, and no effect on your score from that inquiry.

That’s useful if you’re trying to keep your score steady before a bigger application, like a car loan or a rental, or if you’ve had a few applications recently and don’t want another one on there. It also lets you find out whether you’d qualify without the application itself counting against you.

Does it mean nobody looks at my finances?

No. A lender that skips a hard credit check isn’t skipping the question of whether you can repay. It’s answering that question with different information. A credit report shows your history with credit, and that’s not the whole picture. People who are new to Canada, young, or rebuilding after a rough stretch often have thin or bruised files that don’t reflect where they are now.

Does it mean I’ll be approved?

No again. Be wary of any lender that pairs no credit check with guaranteed approval. Lending to people whether or not they can repay isn’t generosity. It’s how debt traps start.

And whatever kind of inquiry is used, the loan itself still counts. Taking one on means committing to pay it back.

How does this work with Buffer?

Buffer doesn’t make a hard credit inquiry. Its underwriting looks at your employment, your income and your bank transaction history, not only a traditional credit score. The idea is to get a fuller picture of your current situation than a credit file alone gives, which can matter if your credit history doesn’t reflect where you are now.

Buffer still looks at your finances before deciding, though, and approval isn’t guaranteed. If you’re approved and accept a loan, you’re taking on a repayment obligation.

Buffer works with Equifax Canada. With your consent, Buffer gets a soft credit inquiry from Equifax to assess your application. According to Buffer’s privacy policy, that soft inquiry doesn’t appear on your credit report and doesn’t affect your credit score on its own.

The loan itself is a different matter. If you’re approved and accept a loan, Buffer reports your loan account to Equifax as a tradeline. That covers the opening and terms of the loan, your repayment history (on-time payments and missed payments), and any default or collection activity. It becomes part of your Equifax credit file and may affect your credit score. Your loan agreement sets out the details, so read it before you accept.

A few tips, whoever the lender is

Ask before you apply. Will this application create a hard inquiry on my credit report? It’s a fair question, and worth asking at every stage, since some lenders do a soft check first and a hard one later.

Space out your applications. If you do need credit that involves a hard inquiry, try not to send several applications at once. FCAC notes that when you shop for a car loan or mortgage, quotes from different lenders within about two weeks are treated as one inquiry. That’s specific to those products, so don’t assume it works elsewhere.

Check your own report. You can request your own credit report, and it’s a soft inquiry, so it won’t affect your score. It’s worth checking for errors, especially before a big application.

Easy to apply isn’t the same as right for you. A quick application is convenient. Whether the loan makes sense is a separate question, and if you do borrow, read the terms carefully first.