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How Much Does A Credit Check Affect Your Credit Score ?
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How Much Does A Credit Check Affect Your Credit Score ?

18/04/2019

Credit checks are a crucial part of the decision-making process for any lender. They ensure credit isn’t given to individuals who are likely to end up in financial difficulty because of it. As a finance provider, a question we are asked a lot is ‘how much will a credit check affect my customer’s credit rating?’ According to Experian.com, the short answer is, not that much.

What is the difference between a soft and hard credit check?

When it comes to credit there are two different types of check, a hard check and a soft check. A soft check occurs when you look at your own credit rating on sites such as Experian.com. This can also happen when a company pre-approves you for credit, such as when your bank sends you information about credit cards you would be approved for. The soft credit check leaves no mark on your credit report and cannot affect future credit applications.

A hard credit check occurs when you apply for credit such as a mortgage, finance for a car or a contract for a mobile phone. Unlike the soft credit check, this does appear on your credit report and can affect future credit applications.

How does a hard credit check affect your credit score?

Despite the hard credit checks appearing on your credit report, there are other factors that lenders are far more likely to consider when reviewing your credit application. Factors such as repayment history, the types of products credit has been taken out for, how long you have used credit and your credit utilisation ratio (how much of the credit you have available to you has already been used). Hard credit checks stay on your report for around two years, but their affect grows weaker over time.

If you’re applying for credit with Auto Service Finance or another company it is important to think about your existing credit, if you have any, and how new credit will fit into this. Select a repayment date that works best for you and ensure the number of instalments you are choosing is the one that works best with your other outgoing payments.

If you would like to split your repair bill over 0% monthly instalments, use our ‘Find a Garage’ tool on the For Drivers section of our website to find an ASF approved garage or dealership in your area.

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*By using Bumper, you are taking out a form of credit. You must be 18+ & a UK resident to apply. There are no fees, no interest or additional charges, however missed payments may incur a £12 administration fee and may impact your credit score. In extreme cases, recovering missed payments may include using a responsible debt collection agency, or as a last resort, taking legal action. Bumper’s instalment credit products are not regulated by the FCA.