Buying a car is a milestone in your life. Your first car gives you a sense of financial stability whereas the subsequent purchases represent the beginning of a new phase in your life. When it comes to financing the car, you may have to rely on an auto loan.
However, did you know that there is something known as soft pull pre approval auto loan? Read on to find out what it is and how it can benefit you.
Whenever you apply for any type of credit, be it a loan or a credit card, the lender will check your credit score and credit history. This is known as a credit pull. There are two types of credit pulls – hard and soft.
A hard credit check takes place when you apply for a loan or mortgage or a new credit card. A soft credit check is when someone accesses your credit history and credit score as a part of a wider credit check. These can occur without your knowledge and usually include the following details –
There are multiple reasons why you should consider a soft pull auto loan –
When there is a hard enquiry on your credit, it creates a small impact. The impact is negligible if it is only one hard check. However, multiple hard checks in a short period can negatively impact your credit score.
With a soft credit check car loan, there is no impact on your credit score.
When a lender runs a soft credit check, they can see the other pre-approved loan offers that you have. It can prompt them to offer a better deal for your soft credit check auto loan.
When a soft credit check reveals that you have an excellent credit history, the lender is more likely to offer you a prequalify auto loan soft pull with a higher loan amount. You may not even need to make a down payment.
A soft pull pre-approval auto loan can help you tremendously while purchasing your car without impacting your credit score in any way. If you are purchasing a car, then do consider it to get the best offers. Get a Quote
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