Soft Credit Pulls Vs. Hard Credit Pulls

Soft Credit Pulls Vs. Hard Credit Pulls

April 5, 2024
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Here in Orlando, FL, your credit score plays a crucial role in determining your eligibility for a loan and the terms you might receive from local car dealerships. This score is tracked by three major credit bureaus, which monitor your financial behaviors and decisions. At Credit Cars, we believe that bad things can happen to good people, such as missed payments or repossessions, which are seen as high-risk and thus reflected in lower credit scores. We specialize in assisting individuals with bad credit or no credit at all.

Soft Pull Credit Inquiries

Soft pulls, or soft inquiries, are credit score checks that do not directly pertain to the issuance of credit. For instance, when we pre-approve you for financing, it involves conducting a soft pull. Important aspects of soft inquiries include the fact that they do not require your consent and they have no impact on your credit score. Therefore, when we offer pre-approval for a loan, even if you have poor credit, it’s done through a soft pull, thus protecting your credit rating!

Hard Pull Credit Inquiries

Conversely, hard pulls are thorough examinations of your credit history, performed by other car dealerships when they consider you for credit towards a new vehicle. These inquiries are officially recorded on your credit report and can remain there for up to two years, affecting your score!

In Conclusion

Applying for multiple loans within a short timeframe, such as when other dealerships submit your application to up to 20 different banks simultaneously, can significantly harm your credit score. It’s essential to understand that dealership pre-approvals for vehicle financing, like what we offer at Credit Cars, only involve soft pulls. This is possible because we act as your sole lender and do not need to shop your application around. Stop by today to explore our inventory!

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