Soft Search Loans

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When you apply for a loan, it can sometimes feel like you’re simply guessing what you will be accepted for, and when hard checks leave a mark on your credit history, this can have a negative effect, making it less likely you’ll be accepted. This is where soft search loans come into play, as they allow you to check your eligibility before you fully apply with a lender, without affecting your credit score.

What is a soft search loan?

Soft search loans allow a lender to check your credit history and access your report but they don’t leave a marker behind. Insurance providers have been using this function for many years now when you apply for a quote. This allows a loan provider to see a top-level overview of your credit history so that they can pre-approve you. It simply means you can learn how likely you are to be accepted for a loan and how much the lender will offer you, with no impact on your credit score.

When a soft credit check is completed by a lender, it will be recorded on your credit report, but only you will be able to see it. As providers can’t see these checks, it doesn’t affect your credit score.

Related: What is a credit score?.

Benefits of a soft search loan

Soft credit check loans have a range of benefits, including:

  • It doesn’t show on your credit report, even if you are rejected
  • You can use this search to compare what different lenders will offer you
  • It’s a great way to check your own credit score

Difference between hard and soft search loans

The biggest difference between a hard and soft credit check is that the soft search does not leave a marker on your credit record, whereas a hard search does. This is because a hard search will appear on your credit score for lenders to see, whereas only you can see soft searches.

A soft search is done when you request a quotation from a loan provider to find out what they are likely to approve you for and what interest rate you can expect. This is done before you apply for a loan, allowing you to check your eligibility and compare lenders. A hard credit check, on the other hand, is done when you actually apply for a loan. The hard search will allow the loan provider to see a full view of your credit history and how you’ve managed borrowing in the past. Therefore, a hard search can negatively affect your credit score, but a soft search does not.

There are lots of things that can affect your credit score, not just applying for loans. In fact, you may be surprised at some factors that can have a negative effect! Read our blog on surprise factors that can affect your credit rating to find out more.

What to consider before applying for a soft search loan

Before applying for a soft search loan, be sure to consider the following:

  • Income and outgoings – Your income and outgoings will help a lender decide if you can afford monthly repayments
  • Credit history – You don’t need a perfect credit score to get a loan, but it’s important to be upfront and honest so the lender can assess you properly on the soft search
  • Eligibility – Each lender has their own lending criteria; if you don’t meet these, you won’t be accepted for a loan
  • Why you require a loan – Some lenders will only accept loans for certain purposes, so be honest about the reason you require a loan

Trustpilot

Representative 89% APR

Representative Example: Representative example: Amount of credit: £1000 for 18 months at £102.42 per month. Total amount repayable of £1843.60 Interest: £843.60. Interest rate: 89% pa (fixed). Representative 89% APR. Rates between 9.3% APR and 1721% APR – your no-obligation quote and APR will be based on your personal circumstances. Individuals with a good credit score may have access to cheaper interest rates. Interest rates associated with short-term loans tend to be higher than those of traditional personal loans. Loan term lengths from 3 to 36 months. Subject to lender’s requirements and approval.

Sunny Loans is a registered trading name of Upward Finance Limited, who is an appointed representative of Flux Funding Limited, who is a credit broker, not a lender. Loan repayment terms are 3-36 month loans.

Warning: Late repayment can cause you serious money problems. For help, go to www.moneyhelper.org.uk.

Soft search loans FAQs

We've answered some common questions about soft search loans below.

  • Which lenders offer soft search?

    There are a few lenders that offer a soft credit check when you supply your details to receive an instant decision. We have a market-leading panel of lenders who all use a soft search to check your eligibility for a loan

  • Are soft searches visible to lenders?

    No, soft searches aren’t visible to lenders. Soft searches can only be seen by you, so it doesn’t matter how many soft credit checks you have; it won’t affect your credit score.

  • Will there still be a credit check later?

    Yes, a soft search is only used to confirm how much you may be able to borrow and the likelihood of you being approved. If you decide to go ahead with the amount offered to you, then a full credit and affordability check (known as a hard search) will be carried out, which will impact your credit score.

  • How long does a soft search last?

    You will be able to see the soft searches on your credit report for 12 months. But it is only you who will see these.

  • Can I use soft search for payday loans?

    A soft search is only provided by certain lenders at the moment, check that the payday loan provider you’re considering offers this function before you apply. All of the lenders on our panel use Soft Search when assessing you for a payday loan.

How do soft search loans work with Sunny?

Soft search allows lenders to determine how much you may be able to borrow, without affecting your credit score. Here’s what the process looks like:

  • You provide us with some details – We securely send our application to our panel of lenders.
  • They check your credit report and history – This won’t affect your credit score and the response will come back straight away.
  • They will confirm how much you may be able to borrow – You can then decide if you want to go ahead and complete the full application for a loan (if you do, the lender will then complete a hard credit check).

Soft search loans offer confidence when applying for a loan. While any quote doesn’t guarantee you’ll be accepted, it does give you an idea of how much you should be able to borrow without affecting your credit score.

Need a soft search loan?

You can apply for a short-term loan at Sunny today, learn how much you could borrow from a panel of lenders with their soft search and then have the money today# if you are approved. Use the button to begin your application.

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Representative 89% APR

Terms and Conditions

A lender eligibility check will assess whether you meet their lending criteria. Even if you are eligible, they may still require proof of ID and/or proof of income before they approve the loan.