What Is a Soft Search in Car Finance?

What is a soft search in car finance?

A soft search, also known as a soft credit check or soft inquiry, is a type of credit check that does not leave a mark on a person’s credit report. Soft searches are typically done by lenders, credit card companies, and other organisations when a person applies for a loan, credit card, or other credit-related product.

A soft search is used to check a person’s creditworthiness, and to see if they are likely to be approved for a loan or credit card. This is done by checking the person’s credit score and credit history, as well as other information such as their income and employment status. Soft searches do not affect a person’s credit score and are not visible to other lenders or organisations.

Examples of soft searches include when you check your own credit report, when you pre-qualify for a credit card or loan, or when a lender or credit card company checks to see if you are pre-approved for a product. We only perform soft searches on our customers credit files, meaning we can gain approvals from multiple finance lenders without impact to a customers credit score and whilst obtaining the best interest rate possible for that individual.

It’s important to note that hard search or hard credit check, which brokers elsewhere may perform, will leave a mark on your credit report and can affect your credit score. Once applying with us, its important to limit other applications elsewhere as multiple hard searches by other organisations may impact an approval or rate we can obtain for you.