Are you considering car finance but worried about the impact it could have on your credit rating? Don’t worry, a car finance soft check will not affect your credit rating.
It is only natural to worry about your credit rating, especially if you are looking to secure car finance, or get any other form of loan.
However, I’ll explain exactly why you have nothing to worry about.
- What a soft credit check is
- What the lender will find out through the soft check
- The reason lenders do soft checks & why they benefit you
Let’s get into it!
What is a Car Finance Soft Check?
A car finance soft check is a quick and efficient way for lenders to assess your creditworthiness without impacting your credit score. It’s like a sneak peek into your financial background, including:
- Personal details such as your name, date of birth and address.
- The types of credit you currently have including mortgages, any other loans, bank accounts and credit cards
- Your repayment history including missed payments
- A note of anyone you’re financially linked to, for example, a joint account with your spouse.
- Any CCJs, bankruptcies and IVAs over the past six years
Soft searches will be visible by you when you look at your own credit report. However, they will not be visible to other companies or lenders.
Think of it as a way for lenders to get a sense of your creditworthiness without making a big commitment. This is why so many lenders do a car finance soft check at pre-approval stage.
So, if you’re considering car finance, a soft check is definitely something to consider. It’s a hassle-free way to explore your options and make informed decisions.
Will a Car Finance soft check affect my credit rating?
No, a car finance soft credit check will not affect your credit rating.
A soft check is designed specifically to avoid impacting your credit score.
So, you can explore multiple finance options and shop around for the best deal without worrying about any negative effects on your credit.
Benefits of doing a car finance soft credit check
Lenders carry out soft credit checks for car finance so that they can give customers a quick decision (or pre-approval) without affecting their credit rating.
A full credit check costs the lender more money and resources & will affect the customers credit score.
It makes sense to do only go through with this when you are serious about accepting the finance you are applying for.
Soft credit checks for car finance on the other hand can be beneficial:
- Peace of mind: A soft credit check allows you to assess your chances of approval without any negative consequences. You can explore your finance options without worrying about damaging your credit score.
- Save time and effort: By doing a soft credit check, you can quickly find out if you’re likely to be approved for car finance. This saves you from going through the full application process for multiple lenders.
Remember, a soft credit check is a useful tool that helps you make informed decisions without any negative impact on your credit rating.
Soft Check Car Finance FAQs
Are you worried about failing a soft credit check? Well, there’s no need to stress. When it comes to a soft credit check, you don’t have to worry about passing or failing. It’s simply a way for lenders to assess your creditworthiness without impacting your credit score. So, relax and let the soft credit check do its job.
But what exactly does a soft credit check look for? It’s all about gathering important details to determine if you’re likely to be approved for credit. Lenders use this information to make informed decisions about your suitability for finance. Rest assured, a soft credit check is not something you need to be concerned about.
Can You Fail a Soft Credit Check?
You can fail a soft credit check if the lender determines that you are not suitable for credit approval. A soft credit check provides lenders with information to assess your creditworthiness and make an informed decision. While a soft credit check does not have a direct impact on your credit score, it does not guarantee credit approval either.
Lenders may consider factors such as your income, employment history, and existing debts to determine your suitability for credit. If the lender determines that you do not meet their criteria, you may fail the soft credit check. However, failing a soft credit check does not mean that you cannot explore other finance options or that you will necessarily fail a full credit check. It simply means that the lender may not be able to offer you credit based on the information available at that time.
Should I worry about a soft credit check?
Don’t stress about a soft credit check, as it won’t negatively impact your credit score. A soft credit check is a quick and efficient way for lenders to assess your creditworthiness without leaving a trace on your credit report.
It’s like taking a snapshot of your credit situation to give lenders an idea of your likelihood of approval. So, there’s no need to worry about it affecting your chances of getting car finance.
In fact, a soft credit check can be beneficial because it allows you to explore multiple finance options without any consequences. It’s like window shopping for the best deal before making a final decision.
So, relax and use a soft credit check to your advantage in finding the right car finance option for you.
What does a soft credit check look for?
A soft credit check looks at factors such as your credit payment history, outstanding debts, and credit utilisation. They use this information to determine if you’re likely to be approved for credit.