So, you’ve decided it’s time to get a new-to-you vehicle. Whether you’re shopping for a car that’s actually new or a pre-owned model, you’re likely going to require financing to help pay for the vehicle. Whether you’re going to opt for an automotive loan or choose to lease your vehicle, the lender will need to determine your creditworthiness. It’s important to know the difference between a soft pull and a hard pull, so that you know how your credit score might be affected throughout the process.
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Soft vs Hard Credit Check
The bare-bones explanation of soft vs hard credit checks is that a hard pull will always affect your credit, while soft pulls never will. We’ll explain each to give you a better idea of the differences between them. A company might do a soft pull as part of a background check. This might include potential employers, credit card companies, insurance companies and so on. A soft pull simply gives the viewer a review of your credit, rather than any in-depth details.
A hard pull, on the other hand, is a more in-depth look at your credit history, as it is used to determine whether or not you’re worthy of being given some sort of loan or credit. For example, a company might request a hard pull if they’re potentially lending you money, opening a line of credit for you, or renting you an apartment. Hard pulls, especially many of them in a short amount of time, can negatively affect your credit score.
Why buy from Carnamic?
As you can see, it’s important to manage the types of credit checks companies might be making, so that your credit score isn’t affected. When you decide to purchase a vehicle from Carnamic and utilize our automotive financing, we’ll discuss your employment and finances directly before ever running your credit. That way, we can make sure that we are sending your application to the most qualified lenders based on your personal situation. We pride ourselves on executing this process to not only make sure that you’re getting approved, but to make sure you’re getting the best and rate and to minimize the impact on your credit score as much as possible.
If you’re interested in learning more about our automotive financing process or have any questions, don’t hesitate to get in touch with us. Otherwise, be sure to check out our inventory to find your next vehicle!
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