topic Re: Question about a soft pull in General Credit Topics

Question about a soft pull

Anonymous — Tue, 25 Feb 2020 15:30:52 GMT

Im applying for a car lease and the dealer is claiming they can soft pull which will hit my credit but only stay for a few weeks,

is this bs? just want some advice if this is actually true. Thanks!

Re: Question about a soft pull

Remedios — Tue, 25 Feb 2020 15:38:46 GMT

@Anonymous wrote:
Im applying for a car lease and the dealer is claiming they can soft pull which will hit my credit but only stay for a few weeks,
is this bs? just want some advice if this is actually true. Thanks!

Hi. Welcome to the forums!

Nope. SPs stay as long as HPs do, but aren't visible to lenders.

Most, if not all auto loans will result in HP. The only difference is, if done within certain period of time, multiple HPs would be scored as one.

Lenders however see individual HPs

Either they are not telling you the truth, or you misunderstood what he/she is saying.

Re: Question about a soft pull

Anonymous — Tue, 25 Feb 2020 15:54:59 GMT

she said "it is pulled as a soft inquirie" "it will hit your credit report but will not stay for more then a few weeks"

Sounds like bs?

Re: Question about a soft pull

Anonymous — Tue, 25 Feb 2020 16:43:29 GMT

She's either misinformed or willfully lying about it. Either way, I'd reconsider options there.

Having bought several cars over the years, the only "soft inquiry" was a Capital One pre-approval, which would turn into a hard inquiry upon completion of the deal. I'd never trust a car salesman or dealer when they say it's not a hard inquiry. Always assume it's a hard inquiry.

Re: Question about a soft pull

PicoFico — Tue, 25 Feb 2020 18:28:40 GMT

@Anonymous wrote:
she said "it is pulled as a soft inquirie" "it will hit your credit report but will not stay for more then a few weeks"

Sounds like bs?

So there's some things happening that's confusing you or them, and I'm leaning that you know what you heard.

A soft pull/inquiry stays on your report for the same time as a hard pull/inquiry. So yes, technically, its bs being there for a "few weeks".

Secondly, they can't control the time it stays on your report, that's controlled by the CRA. I interpret them implying it's under their control.

Regardless, if they soft pull you to see if you can prequal for financing, they will have to hard pull you eventually (which is normal) to finish the lending process and that's the part the isn't being discussed so I'm not sure why the emphasis on soft pull in the conversation.

I suspect they're trying to gauge where you're at credit wise so they can start thinking about terms, if you're a potential go.

My instinct would be walk away just for the misinformation about a soft pull. Auto dealers are literally a dime a dozen and what one, doesn't know/can't do, the next may be willing.

Re: Question about a soft pull

Remedios — Tue, 25 Feb 2020 17:53:06 GMT

It's quite possible she's only taking about doing SP for possible prequalification

Re: Question about a soft pull

Nomad3 — Tue, 25 Feb 2020 19:18:15 GMT

They might be new? Maybe they don't fully understand the world of credit?

If its a HP you have 2 weeks to shop around for other financing and they all get scored as only 1 inq. (For auto/mortgage so you arent penalized heavily for rate shopping)

If you haven't given them the go-ahead yet maybe ask them again or talk to a different person in the F&I dept. It's _possible_ it's a SP for prequal and the HP comes later when you are ready to finalize, but I'd assume its a HP.

Re: Question about a soft pull

coreysw12 — Tue, 25 Feb 2020 21:32:45 GMT

@Remedios wrote:
It's quite possible she's only taking about doing SP for possible prequalification

That was my thought, but then the soft pull would not affect your scores at all... neither before nor after "a couple weeks".

The "couple of weeks" remark is the confusing part. Nothing in the credit reporting world lasts only a couple weeks.

That is, unless maybe the dealership has some sort of scheme where they do an actual Hard Pull, and then submit a request for the CRA's to delete the HP a couple weeks later. Which sounds fishy to me, but I suppose it's theoretically possible. If that's what's happening, then make dang sure you get the dealership to put that deal in writing so they're obligated to follow through with it.

Re: Question about a soft pull

Remedios — Tue, 25 Feb 2020 21:46:50 GMT

@coreysw12 wrote:
@Remedios wrote:
It's quite possible she's only taking about doing SP for possible prequalification
That was my thought, but then the soft pull would not affect your scores at all... neither before nor after "a couple weeks".

The "couple of weeks" remark is the confusing part. Nothing in the credit reporting world lasts only a couple weeks.

That is, unless maybe the dealership has some sort of scheme where they do an actual Hard Pull, and then submit a request for the CRA's to delete the HP a couple weeks later. Which sounds fishy to me, but I suppose it's theoretically possible. If that's what's happening, then make dang sure you get the dealership to put that deal in writing so they're obligated to follow through with it.

I dont expect people who work at the dealership to be involved into scoring minutiae.

Even if they were aware of how it works, their job is to sell cars.

I dont believe there is anything nefarious going on here, probably just trying to "sweeten the pot a little. Besides, if you're buying a car, most likely you're getting a HP (or multiple) at some point..

SP is helpful because it allows them and buyer to see where they stand financing wise.

I really wouldn't spend too much time dwelling on this if I were OP.

HP is cost of doing business, not a punishment.

Re: Question about a soft pull

donkort — Tue, 25 Feb 2020 23:53:40 GMT

I have HUNDREDS of soft pulls. They don't affect my credit score at all. They stay around for as long as hard pulls.

I have three hard pulls from Experian, none from TransUnion, and two from Equifax.

The salesperson might have a mistaken conception of what a "soft pull" is. You ALWAYS get hard pulls if you want to get a credit card, or finance a car, or get a mortgage.

Even though the Apple Card provides offers through a soft pull, you must go through a hard pull in order to get approved for the card.

Re: Question about a soft pull

Anonymous — Fri, 28 Feb 2020 01:36:11 GMT

They lie they lie they lie. I’ve never had a car dealership SP me ever, there always HPs. Get it in writing. Furthermore you should go get your financing elsewhere and then go to the dealership.

Re: Question about a soft pull

Anonymous — Fri, 28 Feb 2020 18:28:30 GMT

Agreed, i wouldn't believe 98% of the BS coming out of their mouth. It's all a sales pitch to sell you something!

It can't be stressed enough for anyone loking to buy an auto, go to you local bank first. Or go online to the various prequal that are SP to guage you chances and loan amount rates etc.

Going directly to the dealer shouldn't be the first thing you do regarding financing, you're only there to test drive the vehicle.

Re: Question about a soft pull

Medic981 — Sat, 29 Feb 2020 20:41:32 GMT

@Anonymous wrote:
They lie they lie they lie. I’ve never had a car dealership SP me ever, there always HPs. Get it in writing. Furthermore you should go get your financing elsewhere and then go to the dealership.

You should always try to find the best auto loan rate yourself before going to the dealership. If you walk into a dealership with a pre-approved auto loan for let's say, $25,000 @ 3.75% then you can skip the "how much can you afford a month" BS negotiation and focus on the out the door price of the car.

Once you have negotiated the out the door price of the car then you might consider letting the dealership try to beat the interest rate of the loan you have been pre-approved for.

Dealerships make money by adding points to the interest rate. The dealership might be able to finance you at 3.75% but only offer you a 5.75% interest rate loan and pocket the additional 2% as profit for themselves.

Remember the dealership finance office is the most dangerous point in your car buying journey and your best weapon is to be willing to walk out of the dealership if they are unwilling to meet reasonable requests.