What Is a Soft Credit Check and Why It Matters When Applying for Finance

When you apply for any form of credit, lenders typically carry out a credit search to assess your financial history. However, not all credit searches are equal, and understanding the difference between a soft and a hard credit check is important — particularly if you're in the early stages of exploring your car finance options.

A hard credit check is a full search of your credit file. It leaves a visible footprint that other lenders can see, and multiple hard searches in a short period of time can negatively affect your credit score. This is something to be mindful of if you're comparing finance deals across multiple dealerships or lenders.

A soft credit check, on the other hand, does not leave a mark on your credit file. It allows a lender to carry out a preliminary assessment of your eligibility without affecting your score. You can carry out multiple soft checks with no negative impact, which makes it a much more sensible starting point when you're shopping around.

At Auto Choice Car Supermarket, we offer a free finance eligibility checker that uses a soft credit search. This means you can get a clear indication of whether you're likely to be approved for finance, and at what kind of rate, before committing to a full application. It's a risk-free way to explore your options.

Only when you decide to proceed with a specific finance agreement will a full hard search be carried out. This is standard practice across the industry and is a normal part of the credit application process.

For customers who are concerned about their credit history, starting with a soft check is always the sensible approach. It gives you useful information without any downside, and puts you in a much stronger position when you're ready to commit. Speak to our team or use our online checker to get started today.