When shopping around for finance for a car, customers are often concerned that the initial credit search will leave a mark on their credit report. This is because marks on your credit file, especially if the search doesn’t result in obtaining finance, can impact on your future ability to obtain credit.
At My Car Credit we overcome this by only carrying out a ‘Soft Search’ at the point of your online application.
What is a soft search?
My Car Credit can help customers check their eligibility for obtaining credit before they formally apply for car finance.
We’ll ask you to complete the short online application form that should take no longer than 3 minutes – the form will require details such as name, address, DOB, contact details, employment details and history etc.
Customers will then receive an instant online decision onscreen, as well as by email and text. Prime customers (those with a good credit status) will receive an actual APR – this is transparent and in the majority of cases, will be the rate you will pay.
Subprime customers (those with a weakened credit history) will receive confirmation of their application and the My Car Credit team will work hard to access our panel of over 25 lenders to get the best possible rate.
A Soft Search is still recorded on your credit file but lenders can’t see the search and so it won’t affect their decision. The searches check the same sort of data that a ‘hard’ application would so they should be just as accurate, but without the risk.
If you ask to see your credit report, you will be able to see the soft search on there. Within reason, you can have as many soft searches as you like on your credit profile and they won’t make a difference or damage credit score.
The main advantage of a Soft Search is that it allows you to shop around for finance for a car before making a final decision. Once the application has been completed, you can either walk away from your application and there will be no footprint left on your credit profile, or if you are happy with the rate you’ve been quoted, you can go ahead and complete the full application.
Although a Soft Search will be a very good indication of where you stand in terms of being approved for credit, nothing is completely certain. Before applying for finance, it’s always a good idea to check your credit history as you may need to work on improving this before making an application.
My Car Credit have partnered with Credit Angel to offer advice and a FREE credit check.