Does Applying For A Loan Affect My Credit Score FAQ
Does applying for a loan affect my credit score?
Applying for a loan can impact your credit score. When you apply for a loan, lenders may perform a credit check. This may affect your credit score.
Many lenders perform a full search of your credit report – known as a “hard search”. If multiple hard searches are carried out on your credit report over a short timeframe, it could affect your credit score.
- A hard search is when a lender makes a full search of your credit report
- Too many hard searches over a short timeframe could affect your credit score
Lenders may perform different types of credit checks (hard and soft) at different stages of the loan application process. There are also many other factors that can affect your credit score.
For a typical loan of £30,000.00 over 120 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £598.34.
Including a Product Fee of £2,400.00 (8% of the loan amount) and a Lending Fee of £807.00, the total amount repayable is £71,800.20.
Annual Interest Rates ranging from 11.88% to 29.38% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
