Is it true some lenders approve auto loans only on a soft credit pull? What are some of the more popular ones that people on here have gotten loans from? Or do they all do a hard pull eventually before issuing the loan?
I noted this site ( https://instamotor.com/auto-finance/used-car-loan/how-to-protect-your-credit-while-shopping-for-a-ca... ) states:
Take Advantage Of A Soft Credit Inquiry
Finally, know that you don’t have to have a hard credit inquiry to get an idea of what your rate might be. Banks can also do what’s called a soft credit inquiry—they essentially ask you a number of questions to see which offers might apply to you. These questions may include things like employment history and address. The banks then offer you loans based on your answers. This allows you to get an idea of what the interest rate might be or what you could qualify for, before you actually apply. Once you have a number of these in hand, and have chosen the right one for you, you can formally apply and the bank will then run a hard credit check.
So this seems to indicate there's always a hard pull, eventually. But what is the purpose of the hard pull? Documentation required by underwriting? If you are pre-approved, aren't you pre-approved on a soft pull for XX days no matter what the hard pull reports? You can't go to the dealer, sign a Purchase Agreement showing your pre-approval and then the lender reneg on you? I do remember all dealers make you sign an agreement I think that if your own financing falls through, you have to use theirs. Not sure if they do a credit check, probably not. Just a safety precaution as I'm sure they'd prefer you to use their lender as opposed to walking away from the car.
