Author
Last updated and reviewed - 5 October 2026
Credit checks for car finance
Before agreeing to lend, lenders assess your creditworthiness, including whether you can afford the repayments. They may use soft or hard credit searches as part of that assessment. A soft search does not affect your credit score. A hard search is recorded on your credit report, can be seen by other lenders and may affect your score.
There is no single credit score to finance a car, as lenders use different criteria and consider your wider credit history, income and affordability. This guide explains how car finance credit checks work, the difference between soft and hard searches, what lenders look for and how applying for finance can affect your credit score.
Car finance companies may use both soft and hard credit checks.
With AutoMoney Trust, your initial application uses a soft credit search, so checking your eligibility will not affect your credit score. A hard credit search is carried out if the soft search is positive and you wish to continue with your application. Not all lenders follow this two-stage approach. Some run a hard search immediately on application, which is why it pays to understand a lender's process before you apply.
A soft credit search is a limited check of your credit file that does not affect your credit score. It is not visible to other lenders, only you. It gives a lender enough information to help assess whether you may be eligible for finance without carrying out a full credit search.
A hard search is recorded on your credit report and can be seen by other lenders. How long it remains depends on the credit reference agency and search type. Several hard searches close together may affect your credit score and how lenders assess you. A soft eligibility check can help you explore an option before a full application, but it does not guarantee approval.
Car finance lenders look at your credit history alongside your wider financial circumstances and affordability.
Lenders look at a combination of the following:
Different lenders use a different criterion, so your credit score alone does not determine whether you will be accepted.
A credit checks shows lenders about your identity, credit accounts, payment history and previous borrowing.
This helps them understand how you have managed credit in the past and assess your car finance application. Your credit report may include:
Lenders use this information alongside other checks, including your income and affordability, to decide whether car finance is suitable for your circumstances.
A hard search may affect your credit score. The effect varies, and several hard searches close together may affect how lenders assess you. If you are declined, try to understand why and check your credit report before applying again. There is no waiting period that guarantees a different result.
While applying for car finance can result in a hard search, managing the agreement afterwards can also influence your credit profile. If you're wondering "does car finance improve credit score?", making your repayments in full and on time can contribute to a positive payment history. However, taking out car finance does not guarantee that your credit score will improve, as your score if influenced by a range of factors.
For more on how your credit file is affected by car finance, see our guide on how car finance can affect your credit score.
Regulated lenders must carry out an appropriate creditworthiness assessment, including whether you can afford the repayments. This does not mean every lender must use the same type of credit search. AutoMoney Trust uses a soft search for the initial eligibility check and a hard search if you choose to continue with a full application. Be cautious about promises of guaranteed finance without affordability checks.
There is no single credit score that guarantees car finance. Some lenders consider applicants with little credit history. AutoMoney Trust requires some credit history, although it does not need to be a strong one. We consider applications from people with poor credit, CCJs and defaults. Approval also depends on our other lending criteria and affordability checks.
You can request your statutory credit report free from the credit reference agencies. You are not limited to one free report a year, and checking your own report does not affect your credit score. Different agencies may hold different information. You do not need a paid subscription to get a statutory report.
When you check your file, look for:
Correcting errors before you apply can improve your chances. Disputed entries can be flagged to the credit reference agency for investigation and, if upheld, removed or corrected.
If you have been turned down previously and want to understand your options, see our guide on what to do if you have been refused car finance.
You can check your eligibility for car finance with AutoMoney Trust using a soft credit search that will not affect your credit score. If you decide to proceed with a full application, a hard credit search will be carried out as part of our assessment.
All applications are subject to status and affordability, and approval is not guaranteed.
We consider applications from people with poor credit and CCJs.
Finance is available from £4,000 to £25,000 over 36 to 84 months with no deposit required. Start on our apply for car finance page.
Car finance can affect your credit score positively or negatively depending on how you manage your agreement. Making regular, on-time payments can help build a positive credit history and demonstrate responsible borrowing, while late or missed payments can negatively affect your credit score and make it more difficult or expensive to access credit in the future.
If payments are not made on time, they may be reported to credit reference agencies, which can lower your credit score and make future borrowing more difficult or potentially more expensive.
A lender may carry out a hard credit search when you apply. Other lenders can see it on your credit report, and it may affect your score. Several hard searches close together may affect how lenders assess you.
For more information about how applications are assessed, read our guide on Credit Checks for Car Finance.
AutoMoney Trust offers a fixed interest rate, so your rate will not rise during the agreement. Your payment schedule is agreed at the start. The first or final payment may be different if it includes a fee, so check the full schedule when planning your budget. With a variable interest rate, the rate and payments may change. Compare the APR, payment schedule and total amount payable before deciding.
The length of your car finance agreement can have a significant impact on both your monthly payments and the total cost of borrowing.
Choosing a longer finance term, such as 60 or 84 months, spreads the cost of the vehicle over a greater number of payments. This can make your monthly payments more affordable, but it may mean you pay more interest overall throughout the agreement.
A shorter car finance term, such as 36 months, usually results in higher monthly payments because the balance is repaid over a shorter period. However, paying the agreement off sooner can reduce the overall amount of interest paid, making it a potentially lower-cost option over the full term.
When choosing the right finance term, it is important to consider your budget, monthly affordability, and how long you plan to keep the vehicle. The best option is one that allows you to comfortably manage your payments without putting unnecessary pressure on your finances.
AutoMoney Trust offers car finance terms from 36 to 84 months, giving you flexibility to choose an agreement that suits your circumstances. Use our car finance calculator to compare different term lengths and understand how your monthly payments and overall costs could change before applying.
With an AutoMoney Trust hire purchase agreement, legal ownership of the car transfers to you only after you have made all of your monthly payments and paid the £10 option to purchase fee at the end of the agreement. Until then, the vehicle remains the property of AutoMoney Trust.
Although you won't legally own the car during the finance term, you are responsible for its day-to-day running costs, including vehicle tax, insurance, MOT, servicing, and maintenance. As the finance provider owns the vehicle until the agreement is complete, you cannot normally sell, transfer ownership of, or make significant modifications to the car without our permission.
It is also important to keep up with your car finance payments, as missed payments could lead to arrears and, in some circumstances, the vehicle may be at risk of repossession if the agreement is not brought back up to date.
Once you have made your final monthly payment and paid the option to purchase fee, legal ownership transfers to you, and the car becomes fully yours with no further finance obligations.
