What is a soft credit search?

February 3, 2021 • The Team

Applying for a loan or credit can feel like a daunting task. You may not be sure how the process works, whether you’ll be accepted, or the potential impact it could have on your credit score. That’s where a soft credit search can help you make a more informed decision without the added worry.

It’s natural to be cautious, and sensible to arm yourself with all the facts before diving in. We’ve put together some answers to help demystify the process and make using our soft search tool a little easier.

Please be aware, the result of the soft credit search is not a decision, an application still needs to be made and may have a different outcome.

What is a soft credit search?

A soft credit search allows lenders to run an eligibility check without affecting your credit rating. It isn’t a guarantee of a loan, just a good indicator if you’re likely to be accepted.

Will it leave a footprint on my credit file?

No. It will leave a mark so that you can see the searches made on your credit report, but lenders won’t see this. A soft search is a great way to get an indication if you’re eligible, with peace of mind you won’t be leaving an unnecessary footprint on your credit file.

Is there a cost to use your tool? Will I be committing to anything?

No. We do not charge or ask for any commitment to proceed with your application. Simply answer a few questions to receive an instant decision based on your answers.

How is my data used? How long will it be kept for?

Through the search we collect your name, date of birth, gender, email address and home address. We use this information to complete a “soft” search on your credit file and repayment history with other credit providers. This data helps us to provide an indication of whether you are likely to be accepted for a loan from us. We hold the data for 6 years to make sure we’re able to answer any questions relating to the search that you may have in the future.

I’ve completed my soft search and look likely to be accepted, how can I see what sort of repayments I’d making?

Our customers can choose the repayments they want to pay to suit their budget: weekly, fortnightly, monthly or even four weekly. You can use our handy loan calculator to see the different types of payment plans available, as well as the potential repayments.

I don’t look likely to be accepted, but really need an essential item for my home, is there anything I can do?

Our mission is to provide a fair and ethical alternative to high-cost lending, giving households access to the essential items they need. As a responsible lender we only offer loans to people we believe can afford to make the repayments. We review every application individually and look to see if the loan is affordable, and that you’re managing your existing credit.

If you find yourself struggling or in debt, don’t worry, there are still organisations who can provide support and advice. Turn2Us is a national charity set up to help people in financial hardship gain access to grants and benefits. You can use their benefits calculator to find out if you’re entitled to any grants or funds that could help you.

We’ve cherry picked a few extra blogs we think you may find useful:

What can you do if you need to get furniture for your living room and you have poor store credit?

Why Was I Declined for a Loan?

To learn more about improving your credit score head to the How To section of our blog.

This entry was posted in How To's and Blog
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