25 May 2023
A soft credit search, also known as a soft credit check or soft inquiry, is a type of credit check that does not have a significant impact on an individual's credit score. Soft credit searches are often used for informational purposes, such as when a person checks their own credit report or when a lender pre-approves a potential borrower for a loan. Unlike hard credit searches, soft credit searches are not visible to other lenders and do not affect creditworthiness.
Understanding soft credit searches is important for borrowers as it allows them to check their own credit information without worrying about negative consequences on their credit score. It also helps borrowers assess their eligibility for credit products without formally applying, which can be useful for comparison shopping and determining the likelihood of approval. Soft credit searches provide valuable information without the risk of negative impacts on creditworthiness.
Suppose an individual is interested in exploring car finance options and wants to assess their eligibility for different loan offers. They approach a car finance broker who conducts a soft credit search to obtain the individual's credit information. The soft credit search provides the broker with an overview of the individual's credit history, allowing them to evaluate potential loan options and provide tailored recommendations. This helps the individual make informed decisions about car finance without affecting their credit score.
|Total charge of credit||£0|
|Total amount payable||£0|