We all are aware of the fact that a credit score reflects our financial behaviour. Having a bad credit score is a nightmare that nobody wishes to have. In these difficult and uncertain economic times, it is challenging to have enough cash to deal with any emergency. Our score gets a blow every time someone runs a verification on our profile. Whenever we apply for a loan, the lender has to run a credit check to assess our borrowing power and affordability. There are two types of credit checks – soft and hard. A hard credit check allows the full visibility of your profile. That means it is a thorough check that is conducted by lenders before making their final decision. It impacts your credit score and also leaves a footprint on your report. In this blog, we will discuss the latter type of credit check in detail.
What is Soft Credit Check?
This check allows a lender or the profile inspector to have a formal review of the individual’s credit report. They do not leave any footprints on your record. They protect your score by not making any negative impact on it. Also, it helps you in knowing which lender is likely to accept your loan application without hurting your score. You will find advertisements by lenders or credit brokers who offer Soft Credit Check Loans Online. By using such credit products, you will not face any difficulty to maintain your credit score.
What are Soft Credit Check Loans?
These can be short-term loans or long-term loans. Mostly, loan comparison websites use this feature to protect the credit score of the borrowers. Knowing what products you are eligible for without harming your score is one of the best innovations in the consumer credit industry. If you already have a poor record and you are applying for a loan – you must apply with lenders and brokers who use soft searches. However, please bear in mind that a hard credit check is mandatory. Every lender has to run a hard search by law before the final point of lending.
What is the Benefit of Using Soft Searches?
Soft credit checks protect the credit score. A good score will always help us to find loans that offer a low rate of interest. While a poor one will get us offers that have high-interest rates. Moreover, you get to know about your eligibility and what APRs are available to you beforehand. It allows you a timeframe to make a firm decision.
When you are considering to apply for an Unsecured Loan, try to find lenders or brokers who are authorised by the Financial Conduct Authority. Deal with them if they use soft pulls for making initial loan quotes. Maintaining and improving a credit score needs a lot of time and effort. Also, a good credit score shows how financially fit you are.
If you want to use a soft credit check to know how much you’re eligible to borrow, click here.