What is a soft credit search?

What is a credit search?

A credit search is something lenders carry out to determine your financial behaviour. All this information will be compiled into what is known as a credit report.

Companies such as loan providers will look at your credit report, but they must have a legitimate reason to do so. For example, you’ve completed a finance application.

When analysis your credit history, lenders will look for the following:

-Whether you’ve paid back your repayments on time
-How much credit you currently have and how you’re managing with it
-Any financial associations you have (for example if you have a joint account with someone) and what their credit history is

There are two main types of credit search; a soft search and a hard search. We’ll go through soft search, how it works and what happens to your credit report when one is completed.

What is a soft credit search?

A soft credit check is essentially a less in depth search of your credit report. This type of search won’t let the company accessing your report see every piece of information, and they’ll only be shown certain information. Companies perform these checks to determine whether your application will be successful.

While soft credit checks appear on your credit report for you, crucially they don’t appear to third party organisations such as banks if they decide to carry out a hard credit search. They also don’t leave a mark on your credit score, so you can perform as many soft searches as you like.

When would a soft credit search happen?

-If you use a credit comparison website
-You search your own credit report
-A company searches your credit report as part of an identity check

When would a hard credit search happen?
 

-You apply for a loan, credit card or mortgage
-You apply to a utility company
-You apply for a pay-monthly mobile phone contract

Are soft credit checks bad or good?

Soft credit checks are a great option if you want to see how eligible you are for a wide range of finance options, without it affecting your credit score. Because they’re not visible on your credit report to anyone else but you, companies can still see how eligible you are for credit products, whether you’re looking to finance a car or after a credit card for everyday purchases, and you can perform as many as you want.
 

When you apply for car finance with Hilton Garage, you will be subjected to a soft credit check that will have no effect on your credit score. You can start your application and see what you're eligible for by using our free online checking tool. Within 60 seconds, we'll make a choice for you. Keep in mind that we are a credit broker, not a lender.

Apply online with Hilton Garage today, get a decision, and drive away!