Online auto retailer Carvana has added a prequalification program to its car buying platform, which will allow consumers to seek a credit check for vehicles on the website without it negatively impacting their score, the company announced in a press release.
By answering 10 questions, the company says shoppers on the site will be able to see personalized financing options in real time based on their own credit history, as well as exact payment terms for which they prequalify.
Prior to this launch, consumers would have to endure a hard inquiry, which can lower credit scores by up to five points and remain on a person’s history for up to two years, the company said.
“Our main focus is on consumers, with the goal to bring transparency back into the antiquated car buying process,” said Ernie Garcia, Carvana chief executive and co-founder, in the release. “We believe consumers should have the ability to shop around and inquire about financing options to help them better understand life events without negative effects on their credit.”
Credit is extremely important to financial success said Scott Brackin, vice president of auto finance at the alternative credit data research company FactorTrust, in the release. “With various important situations in life that can affect consumers’ credit scores, such as student loans, mortgages and even rental applications and cell phone contracts, it is vital for consumers to be aware of these elements and make smart purchasing decisions,” Brackin said. “I applaud Carvana for realizing the need for a solution that puts the consumer first and has no burden on credit scores.”
