There are 2 different types of credits when you are applying: soft credit pull and hard credit pull. The differences between these two credit types must be understood well when applying for a car loan. They can impact your credit score and your overall financial health.
A soft inquiry never impacts your credit score. You can pre-qualify from applying for an auto loan if you plan to buy used cars in reno. You can apply for a soft pull approval and get pre-qualified. Buying a used car can save more money than a new car.
Aside from the brand new car price, you can also save from the other factors, such as:
- Insurance
- Registration
- Taxes
- Depreciation
However, the current used car market offers cheaper prices, especially when looking for a late-model vehicle. Aside from the advantage of lower prices of used cars, you can also use tools that make your shopping experience easier. One tool that has been used by many used car buyers today is the soft pull approval.
Soft pull approval for used cars
A soft pull is a credit check, which does not impact your credit score. You can still apply for soft pull if you have a bad credit score. If you have doubts about getting approved for an auto loan, apply for a soft pull approval to indicate whether you qualify. It can help you determine and address possible issues to get a loan.
Get pre-qualified for a used car loan!
Pre-qualification helps find out a rate estimated based on your financial information. Since pre-qualification can’t impact your credit score, you can still make the right decision. You can decide which used car to buy. Buying a used car doesn’t have to be stressful on your end. There is no need to get pressured since you still have the time to estimate or check which used car fits your financial status.
Being pre-qualified on your car loan application means you can make advanced preparations or awareness of the whole car loan terms, such as:
- Rate
- Term
- Payment amount
So, you can still decide to get the car you planned to have or switch to another car that fits your financial information.
Benefits of auto loan pre-qualification
Auto loan pre-qualification with soft pull approval is the early stage of loan research. It is the process of gathering information without impacting your credit score. But, it is not an approval of the credit. A pre-qualified loan can receive estimates. It offers a change after the lender completes the full credit check.
Why buy a used car?
Buying a vehicle requires a serious commitment and decision. There are some points to weigh when buying a used car, such as:
- Less depreciation. Depreciation is according to the price difference of a car. The depreciation largely drops in the first year. It continually drops from 15% to 20% in the first year. Purchasing a used car that is a year old can save that percentage. When you can buy a used car that is at the 3-year mark, you will be saving around half of the original car’s cost.
- Lower purchase price. When you consider the depreciation statistics, the overall purchase price is lower. As mentioned above, used cars have lower depreciation compared to brand-new cars.
- Lower insurance. A used car is cheaper when getting insurance for it because it has a lower price than brand-new cars.
You can have the soft pull approval if you are still unsure of your capability of getting a car loan. These are the reasons why many car buyers usually look for used cars to buy.