Soft credit checks and how they work in car finance
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Rates from 9.9% APR.
Representative APR of 21.9% APR
APR Example
Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0.00, the monthly would be £178.52, with a total cost of credit of £3711.20 and a total amount payable of £10,711.20. Rates may differ as they are dependent on individual circumstances'. Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Quick Car Finance are a broker not a lender.
Credit checks take place before any car finance deal can be confirmed!
- Non-invasive
- Know your credit history
- Helps to decide affordability
- Gives lenders an overview
Soft credit checks
One thing many companies offer, including ourselves, is a soft credit check. It provides you with an idea of your rates as it shows you what you could be offered while not showing up your credit report.
It is a great idea to be aware of your credit score. No one wants to have bad credit as it can impact your ability to get various types of loans. You can also use our car finance calculator to review your eligibility, by choosing how much you want to borrow, how long you’ll pay it over and also show a bad, fair, good or excellent credit score rating.
How can I make sure I get accepted for car finance?
- Make sure you don't have any missed payments.
- Avoid going over or close to your credit card limit.
- Leave some time between credit applications.
- Register to vote so it's easier for lenders to confirm your identity.
QCF financing deals for everyone
Does everyone get approved for car finance?
Should I worry about a soft credit check
A soft credit check is a gentle way of checking a person's credit information. Unlike a hard credit check, which can negatively impact a person's credit score, a soft credit check does not have any such impact. A soft credit check only provides lenders with an overview of a person's credit history, which is used to pre-approve them for a loan or to estimate interest rates. This information is not reported to credit bureaus and does not appear on a person's credit report. Therefore, a soft credit check is a safe and non-invasive way to check one's credit information.
Why choose Quick Car FInance
No matter where you go, there is no set credit score that will gurantee or prevent you from finding car finance. If you do have a low credit score, which people do, whilst yes it may be more difficult to secure a loan but it is not impossible. Quick Car Finance can advise you personally on your next steps such as applying for joint car finance or putting down a larger deposit to reduce the amount you need to borrow.
You can also take steps to improve your credit score such as registering on the electoral roll or keeping up with your monthly bills and checking your credit report regularly.
Soft credit check and what it means for me
When applying for car finance, lenders typically conduct a soft credit search at the beginning of the application process. This type of search provides the lender with a basic overview of the applicant's credit history without leaving a visible mark on their credit report.
If the customer is deemed eligible for the car finance based on the soft search, the lender may proceed to the next stage of the application and carry out a hard credit search. A hard credit search is a more detailed investigation into the applicant's credit history and will leave a visible mark on their credit report.
It is important to note that a hard credit search can potentially impact an individual's credit score, so it is generally only carried out when the customer has given their consent and is happy to proceed with the finance agreement.
When making an application with QCF, we'll ensure we obtain this consent from you. In the event a lender needs to do a hard search from the beginning, we'll ensure you are aware of this and provide us with your consent.
Take it directly from the people who know!
Fantastic help and assistance from Jack Sherwin. QCF were professional throughout and made the process of buying a new vehicle uncomplicated. From the initial call, to finding a car and eceiving the funds was arranged in a matter of a few days. Can’t speak highly enough about the company.
Soft Credit Check Car Finance FAQs
- Can I get a car on finance if I'm self-employed?
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Yes, it is possible to finance a car through your business. This is commonly done through a business car loan or a business car lease. It's important to note that the availability of business car finance options and the specific terms may vary depending on your business structure (e.g., sole proprietorship, partnership, limited company) and the lender's policies. When financing a car through your business, you'll typically need to provide financial documentation for the business, such as profit and loss statements, bank statements, and potentially business tax returns. Additionally, the car may need to be registered in the name of the business.
- Can you put car finance through your business?
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Yes, being self-employed can potentially impact your credit score, but it's important to understand how: Income Reporting: When you're self-employed, your income may be less predictable or consistent compared to traditional employment. Lenders may consider this when assessing your creditworthiness. Verification of Income: Lenders may require additional documentation to verify your income, such as tax returns, business financial statements, or bank statements. In some cases, this process may be more detailed than for salaried employees. Impact on Creditworthiness: The effect on your credit score will depend on how well you manage your finances and meet your financial obligations. Timely payments on loans, credit cards, and other debts will have a positive impact on your credit score, regardless of employment status.
- Can you get finance without payslips?
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Yes, it is possible to get finance without payslips, especially if you're self-employed or have alternative sources of income. However, not having payslips may make the application process more complex, as lenders typically use payslips to verify income for traditional employees. If you don't have payslips, you may need to provide alternative documentation to demonstrate your income and financial stability. This could include: Bank Statements: Providing several months' worth of bank statements can show a steady income flow. Tax Returns: For self-employed individuals, tax returns can be a crucial document to verify income. Business Financial Statements: If you own a business, providing financial statements can help prove your income. Other Sources of Income: If you have income from sources other than traditional employment, such as rental income, investments, or freelance work, you should disclose and document these. Proof of Benefits or Pension: If applicable, documentation of government benefits or pension income can be used to support your application. Letter from an Accountant or Financial Advisor: A professional letter attesting to your income and financial stability may also be accepted. It's important to note that not all lenders may accept alternative income documentation, and they may have specific requirements. If you're applying for finance without payslips, it's advisable to discuss your situation with the lender or seek advice from a financial advisor who can help guide you through the application process.