![\"soft](\"https:\/\/www.autoraptor.com\/wp-content\/uploads\/2016\/05\/photodune-16165021-businesswoman-checking-credit-score-on-laptop-xs.jpg\" "\\"\\"")
A soft credit check builds trust, shows respect, and helps keep the sales process based in reality.<\/h2>\nA soft credit check builds trust, shows respect, and helps keep the sales process based in reality.<\/h2>\nFor a customer with bad credit, shopping for a new car can be a stressful undertaking. He\u00a0needs to find something affordable, but he\u00a0also doesn\u2019t want multiple dealerships doing hard credit checks that negatively impact his\u00a0already less-than-favorable credit score. When he\u00a0finally finds a car he\u00a0thinks he’ll be able to finance, your customer\u00a0crosses his\u00a0fingers and hopes an approval will be on the horizon \u2014 with a reasonable interest rate.<\/p>\n
One big way you can help your customers is by performing a soft credit check rather than a hard one while they are still in the shopping phase of buying a car<\/a>. This will give you both a glimpse into how much he might be approved for, long before getting to the financing\u00a0stage in the buying process. A soft credit check also helps the salesperson get through the sales process faster.<\/p>\n A hard inquiry is necessary when a customer is ready to buy a car because the credit check will decide whether or not a line of credit will be extended. It also determines the interest rate the customer can be offered. A hard inquiry remains on an individual\u2019s credit report for two years and can possibly have a negative impact on credit score.<\/p>\n A soft inquiry is more of a quick background check. It allows you to assess financial risk before the customer decides to apply for a line of credit \u2014 it\u2019s like a pre-approval. A soft inquiry has no effect on a customer\u2019s credit score.<\/p>\n While a hard inquiry happens when a customer is proactively applying for a line of credit (they definitely want to buy a specific car), a soft inquiry is best when the customer is still shopping.<\/p>\n Your next customer\u00a0might walk onto the lot assuming he\u00a0can drive away in a brand new vehicle, or just not have realistic expectations about what he\u00a0can and cannot afford. He also may not be the best at money management or living within his\u00a0means. It may come as a shock to him in the auto dealer financing office when he learns that his dream car isn’t aligned with his reality finance situation.<\/p>\n However, another customer may come in who understands how damaged his credit is, but needs a reliable vehicle to get to work \u2013 so that he can pay down his debt. He may be extremely anxious about working with a salesperson<\/a>, because any ping to his credit, such as\u00a0a hard inquiry, will put him in jeopardy for even getting an auto loan.<\/p>\n A soft credit check\u00a0will give you a glimpse into what your customers’\u00a0credit is like, and you’ll be able to help them\u00a0set a price range that makes sense. Once they\u00a0understand what\u00a0they can afford, show them\u00a0vehicles that match what they\u00a0are\u00a0looking for and<\/em> what they\u00a0can pay. By finding that sweet spot right off the bat, the entire car shopping experience is much easier \u2014 and it ensures your clients drive off the lot in the right<\/em> car, without damaging their credit.<\/p>\n AutoRaptor has partnered with 700Credit, a leading source of credit reporting and compliance solutions for the automotive industry. Your salespeople are able to perform a soft credit check from within the software, using only the customer\u2019s name and address. The quick check allows your salespeople to save time and fully understand how much financing their customer might be approved for when it comes time to make a purchase.<\/p>\n By performing a soft credit check first \u2014 and explaining to your customers why you feel it will help them in the long run \u2014 you’ll build trust<\/a> and show that you\u2019re not just \u201cin it\u201d to make a sale. A soft inquiry is a way to show customers you respect their credit and that you want to make sure they leave your dealership in a vehicle that is right for them. It’s a win for everyone involved.<\/p>\nHard inquiry vs. soft inquiry<\/h3>\n
Why a soft credit check\u00a0is key to finding the right car<\/h3>\n
How AutoRaptor can help with a soft credit check<\/h3>\n
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Schedule an AutoRaptor Demo Now!<\/h3>\n<\/div>\n