Soft Searches

If you are looking to finance your next motor, you may have seen or heard the phrase ‘soft search’. But what does it mean and how does it affect your credit score? Read on to find out.

When a lender is considering your finance application, they will need to conduct a background check. If they conducted a full credit check each time, this would show on your credit report. If you apply for finance with a number of lenders, you would have multiple searches on your credit report, alerting lenders that you are looking for finance and positioning you as a risky customer.

A hard search shows up on your records and you could in fact be penalised for trying to find the best finance and credit deal. This is where a soft search comes in.

A soft search is a great way to find out your eligibility for finance. It doesn’t show up on your credit report and won’t affect your credit rating. During the comparison stage, this is the best type of search to look for to ensure you get the best deal and don’t scare off any lenders.

Sometimes referred to as a quotation search, a soft search allows lenders to review your profile and assess your situation in order to quote you on your finance package. Once you have selected a lender and a deal, a hard search will then be made to finalise things.

With hard searches, it is recommended that you do not have more than 3 to 4 conducted over the course of a one-year period. You should also spread these out as best you can to avoid worsening your credit rating.

If you’re looking for car finance in Cumbria or need some advice, get in touch with the team at Border City Autos, or visit our showroom in Carlisle.