Soft Credit Check Car Finance

What is a soft credit check?

A soft credit check, sometimes called a soft search, is a light look at your credit file. It uses a small amount of information from the credit reference agencies to show how you have handled credit before.

A soft search does not leave a footprint that other lenders will see. You may see it yourself when you check your own report. It does not affect your credit score. Soft checks are outlined in simple terms on the Experian website.

Soft searches are used in many everyday situations across the UK. They may be carried out when you:

• Check your eligibility for loans or car finance
• Request quotes for financial products
• Look at your own credit report
• Have simple checks done by companies you already use

Soft searches may give a general sense of your chances of being accepted before you make a full application.

Soft credit check vs hard credit check

Soft and hard checks look at similar information, but they work in different ways.

Soft credit check

• Used at the early “check my options” stage
• Gives a simple view of your credit history
• Does not affect your credit score
• Not visible to other lenders
• Helps show what you could be offered

Hard credit check

• Used for full applications
• Shows full credit history
• Leaves a footprint for around 12 months
• May have a short-term impact on your score
• Visible to other lenders

A simple comparison of the two is outlined in our guide to hard and soft credit checks.

How soft credit check car finance works with Go Car Credit

We are a direct lender offering hire purchase (HP) car finance to people with poor or limited credit histories.

When you apply with us, the steps are simple:

• Complete the short online form.
  It asks for details such as your name, address history and monthly income. You can start this on our car finance application page.
• We run a soft credit check first.
  This soft search will not affect your credit score and will not appear to other lenders. It helps us see if we may be able to offer you finance.
• We review your full situation.
  We look at income, outgoings and your wider credit history. Our approach focuses on real-world affordability, which we outline in our
  affordability information.
• If you choose to go ahead, we complete final checks.
  A full credit check may then be carried out as part of the approval process.

Why a soft credit check may help if you have bad credit

If you have a low score or several recent hard searches, you may worry about applying again. A soft check could give you an early idea of your chances without adding to your credit footprint.

A soft credit check may help you to:

• Check eligibility without damaging your score
• See a rough idea of what you could borrow
• Understand how a lender views your history
• Compare choices in a calmer way

People who may find this helpful include those with past missed payments, CCJs, an IVA, a thin credit file or a mix of work income and benefits income.

More details on these situations are outlined in our bad credit car finance information.

Is “no credit check” car finance the same as a soft credit check?

Some companies use the term “no credit check car finance”. In most cases, this still involves a soft check at the start, as UK lenders must look at credit history at some point to lend responsibly.

A soft check does not appear to other lenders and does not affect your score. A full credit check may only take place if you choose to move forward with an agreement.

What we look at alongside your credit score

A soft search is only one part of an application. We also check a few basic things about your situation. These are:

• Income: the money you receive, including any regular benefits
• Outgoings: the cost of your rent, bills and other payments you make each month
• Recent credit behaviour: such as any missed payments
• Address and job history: short checks to see how long you have been at your address and job

You can read simple information about credit in our credit explained section.

Steps to apply for soft credit check car finance

If you would like to see what could be possible, you may follow these steps:

• Check your budget.
  Think about what you may afford each month after essential costs.
• Complete our online application.
  You can begin this on our car finance application page.
• We make a soft credit check.
  This will not affect your credit score.
• We review your details.
  We may ask for documents such as proof of income if needed.
• If you choose to go ahead, final checks are made.
  A full credit check may be part of this stage.

All finance is subject to status and affordability.

Soft credit check car finance FAQs

Will a soft credit check affect my credit score?

No. A soft credit check does not affect your credit score and is not visible to other lenders. How soft checks appear is outlined on the TransUnion website.

Who can see a soft credit check?

Soft checks are normally visible only to you and the company that carried them out. They do not show up to other lenders.

Could I still be declined after a soft credit check?

Yes. A soft search gives an early view. A final decision may depend on your wider history, income and outgoings.

Is a soft credit check suitable if I have CCJs or defaults?

It could still help you explore your options. Soft checks do not affect your score, and you may still be able to continue depending on your full situation.

Do you include benefits income?

In many cases, yes, if the income is regular and reliable. More on this is outlined in our car finance on benefits page.

Thinking about soft credit check car finance?

A soft credit check could help you explore your car finance choices without affecting your credit score. It may give you a clearer view of what could be possible before you decide what to do next.

If you would like to start an application, you can use the online form on our car finance application page. The first step uses a soft search only.