If you have ever applied for a loan, checked your credit score, or used an eligibility checker, you have probably come across the term soft credit check or seen the words 'won't harm your credit score.' But what does it actually mean, and how does it affect you?
The good news is that a soft credit check is nothing to worry about.
It is simply a way for you or a lender to look at certain parts of your credit file without affecting your credit score. It is quick, safe, and a helpful first step before applying for finance.
In this guide, we'll explain how a soft credit check works and how V12 Personal Finance uses them to help you apply with our lender and broker panel with confidence.
How does a soft credit check work?
A soft credit check is a gentle look at your credit information. It shows bits of your credit history, helping lenders understand whether you might be eligible for a loan.
Here's how it works in practice:
1. A lender looks at a small snapshot of your credit file - it's not the full picture, just enough to understand whether you might be eligible for a loan or finance. Think of it as a quick glance, not a deep dive.
2. It happens quickly and doesn't affect your credit score - a soft credit check leaves no mark that impacts your score, so you can use eligibility tools as much as you like.
3. Only you can see soft credit checks on your credit report - they appear on your file for transparency, but they're private. Other lenders don't see them, so they cannot influence future applications.
4. Other companies can't see soft credit checks done by anyone else - because the record of the soft credit check is hidden from third parties, soft credit checks never affect how other companies assess you. This is why they're safe to use when you're comparing options or checking your chances.
At V12 Personal Finance, we work with lenders and brokers who use soft credit checks early in the journey through our eligibility check, so you can see your likelihood of approval from the lenders and broker we work with, with no impact on your score, giving you confidence before committing.
What appears on your credit file after a soft credit check?
Soft credit checks are completely private. They appear on your credit file, but:
• Only you can see them.
• They do not influence lending decisions by other creditors
• They do not affect your credit score.
• There is no limit on how many you can have.
This is why soft credit checks are such a popular tool for people who want to understand their borrowing options without impacting their credit score.
Why do lenders use soft credit checks?
Soft credit checks are a valuable tool for both lenders and customers.
They help lenders:
• Understand whether a customer is likely to be accepted
• Prevent customers from applying for products they are unlikely to get
• Support responsible lending
• Give people clarity before they apply
For customers, they help take the stress out of applying. You can see if you are likely to be approved before moving forward, without worrying about harming your credit score. It's never guaranteed but will give you a really good indication.
How V12 Personal Finance uses soft credit checks
At V12 Personal Finance, transparency and clarity are at the heart of everything we do.
During our eligibility check, our lenders use a soft credit check that lets us show you:
• Your likelihood of being approved
• Your potential loan options, personalised interest rate, and repayment amounts
From there, you can make informed choices and continue knowing your credit score is unaffected
Before applying for a personal loan
The demand for personal loans is growing across the UK. But for all the benefits of a personal loan, it's important to know the risks.
It's important to carefully consider the type of loan that best suits your needs, as well as the term and amount that are suitable and affordable to you. If you are a homeowner, V12 Personal Finance may provide you with details of loans which require you to use your home as security.
YOUR HOME IS AT RISK. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Everyone is different, so be sure to research whether a loan is right for you before committing to one.
Check your chances with the V12 Personal Loan Eligibility Checker
If you are thinking about applying for a personal loan, our V12 Personal Loan Eligibility Checker is the quick and easy way to see where you stand.
Here is what you can expect:
• A soft credit check that does not affect your credit score
• A quick and easy indication of your eligibility
• No obligation to apply
• No footprint that lenders can see
• A simple, clear and transparent experience
It is designed to give you confidence upfront, helping you make the right decision for your financial well-being. It's important to remember that a successful soft credit check is not a guarantee of lending.
When might finance companies use a soft credit check?
Soft credit checks are useful in many everyday situations, including when you do things like:
• Comparing personal loans
• Check your credit score
• See what finance products you might be eligible for
• Plan for future borrowing
• Shop around for the best finance option
If you are unsure whether you should apply for finance immediately or whether you would be eligible, a soft check is a safe and smart first step.
Soft checks and responsible borrowing
At V12 Personal Finance, we're committed to making your borrowing journey as straightforward and transparent as possible. Our personal loan eligibility check keeps you fully informed from the very start, helping you understand your options before you apply.
If you're considering a personal loan, start with our V12 Personal Loan Eligibility Checker to see your chances in minutes. No pressure. No impact on your credit score. Just clear information to help you choose the right path for your needs.
FAQs
1. Does a soft credit check affect my credit score?
No. Soft credit checks never impact your credit score.
2. Who can see a soft credit check on my file?
Only you can see it. Lenders cannot view soft credit checks.
3. How is a soft credit check different from a hard credit check?
We use a soft credit check is for eligibility checking purposes, while a hard credit check is used by lenders when you submit a full application for a loan. Hard credit checks can impact your score.
4. Does using the V12 Personal Finance eligibility checker affect my credit score?
No. It uses a soft credit check, which leaves no mark on your credit file that lenders can see. Take a look at our personal loan eligibility checker here.
5. Does a soft credit check guarantee loan approval?
Not always. It shows how likely you are to be accepted, but a full application still includes a hard credit check and an affordability assessment.
Representative 21.8% APR
Representative example: If you borrow £5,500 over 5 Years at a Representative APR of 21.8% and an annual interest rate of 21.8% (fixed) you would pay £152.28 per month. Total amount repayable £9,136.80. Minimum repayment period is 12 months. Total charge for credit will be £3,636.80. Credit is subject to status, the % APR rate you will be offered is dependent on your personal circumstances.
It's important to carefully consider the type of loan that best suits your needs as well as a term and amount that is suitable and affordable.
V12 Retail Finance Limited is registered in England and Wales 4585692. Authorised and regulated by the Financial Conduct Authority. Registration number: 679653. Registered office: Yorke House, Arleston Way, Solihull, B90 4LH Correspondence address: 25-26 Neptune Court, Vanguard Way, Cardiff, CF24 5PJ. V12 Personal Finance is a trading name of V12 Retail Finance Limited.
V12 Personal Finance is a credit broker, not a lender. V12 Personal Finance introduces you to a limited range of brokers or lenders who may offer you a loan. V12 Personal Finance does not work with the whole of the lending market, meaning other loans may be available to you elsewhere.
V12 Personal Finance does not give you any recommendation or advice. V12 Personal Finance acts for itself and is not impartial. It does not act for you or for the lenders or brokers it works with.
V12 Personal Finance receives a fixed or percentage commission payment from the lender or broker if you take out a loan. The commission it receives varies depending on the product, loan amount or APR. Loan offers (if available) are shown in this order: unsecured loans followed by secured loans, ranked by the closest matched loan amount, term and lowest APR respectively. Before completing your application, you will be shown the commission arrangement between V12 Personal Finance and the lender or broker you have selected.
Credit is subject to status. You must be UK resident aged 18 and over, with a regular provable income. If you are a homeowner, V12 Personal Finance may provide you with details of loans which require you to use your home as security. YOUR HOME IS AT RISK. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
To make things easier, we'll share the information (including your personal details) that you confirm and provided during this eligibility check with our panel of lenders or brokers. We do this so that they can provide you with a quote for the loan you have requested and to save you from having to tell them again. Details of our panel can be found here.
You can read more about how we use your personal data in our privacy statement.
Warning: late payment can cause serious money problems.
For help, go to moneyhelper.org.uk