A Guide to Soft Credit Check Auto Loans

Find the Best Loan Without Damaging Your Credit

When you need a car but have less-than-perfect credit, a soft check auto loan allows you to see if you prequalify without impacting your credit score. Soft inquiries, as opposed to hard inquiries, don’t affect your score since they aren’t visible to others checking your credit. With a soft pull loan, you can easily shop rates to find the best auto financing option for your situation.

In this post, we’ll explain what soft pull loans are, where to get prequalified, whether you can still get approved with bad credit, and more. We’ll also provide a comparison of top lenders offering soft check auto loans so you can zero in on the right choice.

What is a Soft Pull Auto Loan?

The main difference between a soft credit check and a hard check relates to how each affects your credit score. According to the FTC, soft checks don’t impact your score at all. Hard checks, on the other hand, can result in a few points being docked since they indicate you are applying for new credit.

The reasoning is that opening too many new accounts can up your overall debt obligations, raising concerns about repayment ability. However, rate shopping within a two-week window only counts as one inquiry on your report.

Where Can I Get Prequalified for an Auto Loan?

The five lenders below all prequalify applicants so you can see if a loan is possible before formally applying. They work with networks of subprime lenders open to buyers with less than perfect credit.

By prequalifying you first, they avoid an unnecessary hard pull that could damage your score if you end up not qualifying with a given lender. But be aware a hard pull will likely happen upon formally applying with any lender after preapproval.

Auto Credit Express

Rating: 4.9/5
Loan Amount Range: $5,000 – $100,000
Min FICO Score: 300
Interest Rate Range: 3.99% – 29.99%
Minimum Interest Rate: 3.99%
Average Interest Rate: 16.99%

MyAutoLoan

Rating: 4.8/5
Loan Amount Range: $5,000 – $100,000
Min FICO Score: 300
Interest Rate Range: 3.99% – 26%
Minimum Interest Rate: 3.99%
Average Interest Rate: 15.0%

Carvana

Rating: 4.7/5
Loan Amount Range: $5,000 – $100,000
Min FICO Score: 300
Interest Rate Range: 8.99% – 26.99%
Minimum Interest Rate: 8.99%
Average Interest Rate: 17.99%

Carmax

Rating: 4.5/5
Loan Amount Range: $5,000 – $100,000
Min FICO Score: 300
Interest Rate Range: 7.69% – 26.74%
Minimum Interest Rate: 7.69%
Average Interest Rate: 17.215%

Car.Loan.Com

Rating: 4.5/5
Loan Amount Range: $5,000 – $100,000
Min FICO Score: 300
Interest Rate Range: Varies
Minimum Interest Rate: Varies
Average Interest Rate: Varies

Auto Credit Express

Auto Credit Express has over 20 years experience specializing in bad credit auto loans. They have helped over 1 million people with credit challenges get financed. Their lender network provides loans ranging from $5,000-$100,000 to borrowers with FICO scores as low as 300.

MyAutoLoan

MyAutoLoan makes it easy to compare personalized loan offers from their network of lenders. Prequalify online in minutes without affecting your credit score. Loans from $5,000 to $100,000 are available for borrowers across all credit profiles, even with minimum FICO scores of 300.

Carvana Carvana is an online used car retailer that also provides financing. Their direct auto loans ranging from $5,000 to $100,000 help those with minimum credit scores of 300 drive away in the vehicle they choose. Quick online applications and eSigning speeds up the lending process.

Carvana

Carvana is an online used car retailer that also provides financing. Their direct auto loans ranging from $5,000 to $100,000 help those with minimum credit scores of 300 drive away in the vehicle they choose. Quick online applications and eSigning speeds up the lending process.

Carmax

Carmax is America’s largest used car dealer and has their own financing arm. They provide auto loans up to $100,000 to borrowers starting with 300 FICO scores. Receive a lending decision as fast as 30 minutes when you apply in store.

Car.Loan.Com With 25+ years matching borrowers to lenders, Car.Loan.com specializes in helping those with bad credit, no credit or even recent bankruptcy secure auto loan financing with low minimum requirements. Loan amounts from $5,000 to $100,000 and interest rates are customized to each borrower’s unique credit profile.

Car.Loan.Com

With 25+ years matching borrowers to lenders, Car.Loan.com specializes in helping those with bad credit, no credit or even recent bankruptcy secure auto loan financing with low minimum requirements. Loan amounts from $5,000 to $100,000 and interest rates are customized to each borrower’s unique credit profile.

Frequently Asked Questions About Soft Check Auto Loans

Can I Still Get Approved for a Car Loan with Bad Credit?

The lenders we reviewed specialize in subprime borrowers with credit scores below 580 on the 300-850 FICO model. Approval odds decrease further down the score range, but the auto industry wants to say “yes” when possible since transportation remains vital even with bad credit.

Because auto loans are secured debt, backed by the car itself, lenders can repossess the vehicle if you default. This lowers their risk versus unsecured personal loans. Some common requirements with subprime applicants are down payments and weekly installment schedules. Also expect to pay higher interest rates and fees compared to prime borrowers.

What credit score is needed to qualify?

Some lenders claim no official minimum score requirement. However, extremely low scores below 500 may still struggle getting approved affordably even on subprime loans. The prequalification process lets you see if loan offers are possible before applying.

Can I get 0% interest on a soft check auto loan?

For buyers with lower credit, 0% interest is very rare on any auto loan product. Two ways to secure this rate potentially are 1) Have a prime score of 720+ and qualify for top-tier incentives from the automaker on select new car models or 2) Receive dealer/lender financing as part of lease deal when getting a new car.

How fast can I get loan funds after approval?

Online preapprovals through networks like the ones we reviewed can match you with a lender willing to fund approved loans as soon as the next day in some cases. The ability to eSign documents electronically further speeds up the process compared to taking physical loan contracts into a branch.

Should I only apply to one lender I prequalify with?

No, the benefit of soft check prequalification is you can submit inquiry forms to multiple lenders without accumulating hard pulls on your report. Prequalify with several providers to find the best loan terms and interest rate for your situation. Applying widely maximizes chances of approval too.

What documents do I need to provide upon formally applying?

After prequalifying comes gathering what lenders require to underwrite your application before final approval. Typical documents are a valid state ID, recent pay stubs verifying income claimed, proof of address, references, car purchase paperwork if buying, and perhaps bank statements. Double check each lender’s list so your app isn’t delayed.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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