How Long Does a Credit Check Take?

The length of time a credit check usually takes will vary, depending on the type of check performed. Read on to find out more.

What’s the difference between a credit score and credit report?

The terms credit score and credit report are often used interchangeably, but they’re not actually the same.

Your credit score is a three-digit number. It signifies your overall credit risk and history to lenders.

Your credit report is a detailed account of your credit and borrowing history. A credit report is therefore a far more in-depth indicator of the type of borrower you are. Information like your address and court records, repayment and borrowing habits, ongoing payments, past and present debt(s), and application history will all show up on your credit report.

Be aware that credit scores don’t guarantee acceptance for credit. As a general rule, higher credit scores make you more attractive as a candidate for finance. However, lenders may have their own eligibility criteria, so don’t assume that a high credit score is an absolute guarantee of loan acceptance.

You can check your credit rating with companies like Experian. They’ll give you a free credit report, allowing you to understand how you may look to lenders.

What’s a good credit score?

Different credit scoring agencies calculate credit scores in various ways. However, you can generally assume a credit score above 700 to be considered good, with scores over 800 marked exceptional. Poor credit scores rank lower than 300.

What’s the difference between a hard and soft credit check?

There are two main types of credit check – hard and soft.

A hard credit check will leave a mark on your credit report. This shows lenders that you’ve been looking for credit. Hard credit checks typically stay on your report for 12 months.

If your credit report shows multiple hard credit checks over a period of six months, this will impact your finance eligibility. Lenders can see this as a sign that you’re in financial trouble, or over-rely on borrowing. They may subsequently be less willing to approve your application. Plus, multiple hard credit checks will negatively impact your overall credit rating.

By contrast, a soft credit check involves lenders taking an initial look at your credit report.

Unlike a hard credit check, a soft credit check won’t leave a mark on your report, they’re not visible to companies – only you can see them. As such, a soft search won’t damage your overall rating.

A soft credit check is designed to give any potential lender the opportunity to gauge how successful your application will be if you decide to advance it. If you do so, you’ll then undergo a hard credit check.

Soft credit checks also help you to see how eligible you are for a range of credit without having to undergo a hard credit check that might negatively affect your report. You can’t fail a soft credit check.

At My Car Credit, we only perform an initial soft credit check at the start of your application. It allows us to ascertain your eligibility, and you’ll get a sense of whether your application is likely to be approved.

Be aware however, should you progress, some lenders may perform a hard search on your credit file.

How long does a credit check take?

Credit checks are typically pretty speedy, depending on the type of credit check performed.

Expect a hard credit check to take anywhere from two to ten days.

Our initial soft credit checks are typically performed within a couple of hours. As such, we can help you to secure stress-free and quick car finance.

That said, if the lender doesn’t have access to all the information they need, this will lengthen the process. Prevent delays by having all necessary information to hand before you apply for a credit check.

What kind of credit check takes the longest?

As indicated above, hard credit checks take longer than soft credit checks.

You can expect longer credit checks if you’re applying for a more significant loan.

So, for example, if you’re applying for a new mobile phone contract, checks should take from a few minutes to a couple of hours.

Alternatively, credit checks for a mortgage might take up to a week, or potentially longer.

You can speed the process along by providing all information in a timely manner. You can also help by ensuring that your address history is error-free and updated, and regularly checking your credit report to ensure that no mistakes are listed.

Can I get car finance with poor credit?

At My Car Credit, we’re dedicated to helping all drivers secure car finance, no matter their credit score.

If you’re looking for car finance with a credit report that’s less than ideal, we’ve got poor credit car finance. We consider all circumstances, combining a wide panel of trusted lenders with a sensible approach. That way, you’re more likely to secure the right car finance lender for your circumstances. In fact, we may even be able to approve you for car finance where others haven’t.

Find super quick car finance with My Car Credit

If you’re looking to secure speedy car finance with minimal fuss, get in contact with My Car Credit.

My Car Credit are car finance experts, and you can crunch the numbers on car finance by using our handy Car Finance Calculator today.