Does Navy Federal Pre-Approval Auto Loan Affect Credit Score?
When it comes to financing a new or used vehicle, many car buyers consider applying for pre-approval from lenders, including Navy Federal Credit Union. One of the most common questions asked is whether a pre-approval auto loan from Navy Federal affects credit score. In this article, we will delve into the details and provide a direct answer to this question.
Does Navy Federal Pre-Approval Auto Loan Affect Credit Score?
The answer is NO, a Navy Federal pre-approval auto loan does not affect your credit score. When you apply for pre-approval, Navy Federal only performs a soft inquiry on your credit report, which is a gentle and non-invasive check that does not harm your credit score.
What is a Soft Inquiry?
A soft inquiry is a type of credit check that is used to review your credit report and credit score without affecting your credit score. Soft inquiries are often used for pre-approval purposes, such as when you’re applying for a loan or credit card. Unlike hard inquiries, which can temporarily lower your credit score, soft inquiries do not have any impact on your credit score.
What is a Hard Inquiry?
A hard inquiry, on the other hand, is a type of credit check that is used to review your credit report and credit score and can potentially lower your credit score. Hard inquiries are often used when you’re applying for a loan or credit card and the lender needs to verify your creditworthiness. Hard inquiries can stay on your credit report for up to two years and can affect your credit score for up to 12 months.
How Many Soft Inquiries Can I Have?
The good news is that there is no limit to the number of soft inquiries you can have. This means that you can apply for pre-approval with multiple lenders, including Navy Federal, without worrying about affecting your credit score.
Table: Soft Inquiries vs. Hard Inquiries
| Soft Inquiry | Hard Inquiry | |
|---|---|---|
| Effect on Credit Score | No effect | Can lower credit score |
| Purpose | Pre-approval, credit checks | Loan or credit card applications |
| Duration on Credit Report | None | Up to 2 years |
Why Choose Navy Federal for Pre-Approval?
Navy Federal is a well-established credit union with a reputation for offering competitive rates and terms on auto loans. Here are some reasons why you should consider Navy Federal for pre-approval:
- Competitive Rates: Navy Federal offers competitive rates on auto loans, which can help you save money on your monthly payments.
- Flexible Terms: Navy Federal offers flexible terms on auto loans, including 36, 48, 60, and 72-month terms.
- Low Fees: Navy Federal has low fees compared to other lenders, which can help you save money on your loan.
- Easy Application Process: Navy Federal’s online application process is easy and quick, which can help you get pre-approved in just a few minutes.
Conclusion
In conclusion, a Navy Federal pre-approval auto loan does not affect your credit score. Soft inquiries are used to review your credit report and credit score without affecting your credit score, and you can have multiple soft inquiries without worrying about affecting your credit score. Navy Federal is a great option for pre-approval, with competitive rates, flexible terms, low fees, and an easy application process.
