Hard Pulls vs Soft Pulls: What Applying for Credit Really Costs
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- Understanding hard pulls vs soft pulls is essential because hard credit inquiries can temporarily lower your credit score, while soft pulls have zero impact.
- Rate shopping for major purchases like cars or mortgages is grouped together by scoring models if done within a specific window, protecting your score.
- Buy now, pay later plans are becoming increasingly popular for holiday spending, but users need to watch out for hidden fees and the temptation to overspend.
- Forming an LLC can provide liability protection for freelancers, but it doesn't automatically cut your tax bill until you consider structures like an S corporation.
- Clearing out clutter and selling items you no longer use is a practical way to generate quick cash up to $75 without taking on new debt.
In today's episode, Ralph Estep Jr. and Juliet focus on what an LLC actually changes for a growing freelancer, along with a new marketplace repayment rule, holiday pay-later plans, and credit applications.
In This Episode
✓ Marketplace open enrollment and the end of the repayment cap on excess premium credits
✓ Nearly 2 in 5 holiday spenders plan to use buy now, pay later
✓ Employers think workers have enough saved, and workers say otherwise
✓ What a hard credit pull really costs, and how rate shopping works
✓ What an LLC changes for a freelancer, and when an S corporation makes sense
✓ Hosting Thanksgiving for 12 without leaning on a credit card
✓ Money move: sell something you don't use, up to $75
If you've ever wondered whether an LLC will cut your tax bill, this episode gives you a straight answer.
Resources
Watch live:
https://www.becomingfinanciallyconfident.com/live
Christmas Bonus giveaway:
https://www.becomingfinanciallyconfident.com/giveaway
Year-End Personal Tax Review:
https://www.becomingfinanciallyconfident.com/yearend
Book a call:
https://www.ralphestepjr.com/schedule
HealthCare.gov open enrollment:
https://www.healthcare.gov/get-answers/
NerdWallet 2026 Holiday Spending Report:
https://www.nerdwallet.com/credit-cards/studies/holiday-spending-report
myFICO on rate shopping:
https://www.myfico.com/credit-education/blog/rate-shop
IRS self-employment tax:
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Companies Mentioned
NerdWallet
The Harris Poll
Transamerica
Highmark Blue Cross Blue Shield
Walmart
Macy's
Nordstrom
Toyota
Cadillac
Honda
Hyundai
Google Meet
YouTube
Frequently Asked Questions
What is the difference between hard pulls vs soft pulls?
A soft pull occurs when you check your own credit or a lender pre-approves you, which does not affect your credit score. A hard pull happens when a lender checks your credit in response to a formal application for a loan or credit card, which can cause a minor, temporary dip in your score.
How does rate shopping affect your credit score?
Credit scoring models recognize that you are shopping for the best loan rate on a major purchase like a car or home. Multiple inquiries for the same type of loan within a specific 14-to-45-day window are typically counted as a single inquiry to protect your score.
Does forming an LLC automatically lower a freelancer's taxes?
No, simply forming an LLC does not automatically reduce your tax burden. You still pay self-employment tax on net earnings, though electing S corporation status later can offer tax savings once your income reaches a certain threshold.
