What is a soft search?

You will have likely heard the phrase ‘soft search’ when looking for finance but do you know what it means and what it entails? If not, read on for our answers…

A soft search is used to check if you could be eligible for finance. It doesn’t affect your credit rating and can be a great tool to find out what your options are when you are exploring car finance.

A hard search, on the other hand, is far more in depth and appears on your credit report.

This isn’t necessarily a bad thing, but it is recommended you only have three or four hard searched on your report per year, and you should spread them out. So, if you are shopping around for finance, it could negatively impact your credit rating.

When you are looking around, lenders will have access to your credit report, and a number of searches in a short space can set alarm bells ringing – and you could end up with a higher APR and interest rate. The hope is that technology will catch up with us and it will be able to recognise you are being a savvy shopper, not a fraudster, but in the meantime, we have soft searches.

The advantage of them is you can scope out what is available at no detriment to you. Of course, if you wanted to go ahead with a deal, a hard search would be carried out. But, in the interim, soft searches give you the freedom to shop around without worry and to explore the finance options available to you.

At Instant Car Finance, we can carry out soft searches on any of our vehicles, and the best part is, getting started only takes a couple of minutes. Visit the application section of the website to find car finance in Manchester, or get in touch with a member of the team to find out more.