If you are considering applying for car finance to fund your next vehicle purchase, you may be concerned about how it will affect your credit score. Before finance providers agree to lend you the amount required to cover the cost of a vehicle, it is necessary for them to conduct a credit check to see how reliable you are as a borrower. Prior to this stage, you can use a soft credit search to see how likely it is that you will be accepted for finance. If you are unsure what exactly this entails, this article should explain what a soft credit search is.
What is a soft credit check?
A soft credit search is one that does not leave a ‘footprint’ on your credit record and will not be visible to third parties. Instead of having your credit record searched in great detail, you may simply be asked about your credit history based on information you have given during the application process.
How will a soft credit search affect my credit score?
Soft searches may appear on your credit report, however it is unlikely that they will have any effect on your credit rating. This makes soft searches ideal for shopping around and comparing quotes, as brokers and lenders can give you an idea of whether or not you will be eligible for car finance.
When you apply for used car finance in Warrington with RIX Motors, we will take the information you provide in our quick online survey and use it to gain an idea of your current credit situation in an initial soft search. This will allow us to determine your eligibility for a finance agreement and provide the most relevant quotes from our lenders. We are partnered with multiple finance providers which allows us to compare rates quickly, which will save you time and effort and won’t impact your credit score. You can then proceed with the right lender for you, with peace of mind knowing that you have compared options and chosen the best deal without staining your credit history.
What is a hard credit check?
A hard credit search will leave a permanent footprint on your credit record. This will be visible to any finance providers you apply to in the future. Multiple hard credit searches in a short space of time can deter lenders because it suggests that you may have been refused or that you are desperate, which can result in you being considered as a high-risk candidate for finance. This is why it is important to make sure that you only get soft credit searches done while you are shopping around for the best deal.
Applying for car finance with a soft search approach
If you would like to check your eligibility for used car finance in Warrington, complete the quick and easy application process on the RIX website. Rest assured that this will only require a soft credit search and will not leave a footprint on your credit report! For more information about finance agreements and credit checks, please give us a call or an email and our knowledgeable team will tell you everything you need to know!