Soft check vs hard check: the difference
A hard credit check is recorded on your credit file and is visible to other lenders. It can temporarily reduce your credit score and is typically used when you apply for credit — a loan, overdraft or credit card. A soft check is an identity verification that does not leave a footprint visible to other lenders and does not affect your credit score.
Tide runs a soft electronic identity check when you apply for a business account. This check verifies your identity and confirms you are who you say you are, as required by UK anti-money laundering regulations. Because Tide does not offer overdrafts or credit facilities on the standard business current account, it has no reason to run a hard credit check during the account-opening process.
The practical implication is significant: if you have a poor credit history, CCJs, or a discharged bankruptcy, you can still open a Tide business account as long as you pass the identity and business verification checks. Tide's published eligibility page confirms that it does not run a hard credit check for the standard business current account.
What Tide does check
While Tide does not run a hard credit check, it does carry out several verification steps before approving an account. These include: electronic identity verification (checking your name, date of birth and address against reference databases); document verification (a photo ID and selfie); Companies House checks for limited company directors; and anti-money laundering screening against sanctions and politically exposed person lists.
Tide can and does decline applications. The most common reasons for a declined application are: failing the identity check (documents not matching), the business type being on Tide's excluded list (cryptocurrency, charities, certain regulated activities), or the application triggering a manual review that does not pass. A declined application is not the same as a failed credit check.
Does using REFER200 affect the credit check?
No. The REFER200 partner campaign code is entered during the signup flow and attaches a marketing campaign to your application. It does not change the account type, the verification process, or the checks Tide runs. Whether you use a referral code or not, Tide's identity and business verification process is the same.
Tide vs Starling and Monzo: credit check comparison
Tide's soft-check-only approach is a meaningful advantage over some competitors. Starling Bank and Monzo Business both run harder checks as part of their application process, which can leave a footprint on your credit file. For a business owner with a thin or adverse credit history, Tide's approach removes a barrier that would exist with a fully licensed bank.
| Provider | Credit check type | Affects credit score? | Good for bad credit? |
|---|---|---|---|
| Tide | Soft identity check only | No | ✓ Yes |
| Starling Business | Hard credit check | Yes | Depends on score |
| Monzo Business | Hard credit check | Yes | Depends on score |
| Revolut Business | Soft check | No | ✓ Yes |