Quick tips: There is a better way to find a great personal loan AND protect your credit score.
Unfortunately we often see people come to us looking for help with a personal loan thinking they have a good credit score.
They are surprised when we tell them their credit score has fallen significantly recently because they have applied for a personal loan directly to lots of different lenders.
You see, when you apply for a personal loan directly to a lender this can get marked on your credit file as a ‘hard’ credit enquiry which lowers your credit score.
So, as people are shopping around looking for the best rate for a personal loan they are actually hurting their credit score with all these applications direct to lenders.
Because credit scores have a really big impact on the interest rate you get for a personal loan, lots of shopping around can end up costing you money because your interest rate will be higher.
Now I’m sure you are thinking ‘but how can I find the best rate for a personal loan if applying for one hurts my credit score’?
We strongly recommend using a loan finding service like LendLab because we can compare personal loans for you without hurting your credit score.
There’s two reasons a loan finding service won’t hurt your credit score.
Firstly, good loan finding services only do soft credit checks which does not impact your credit score.
Secondly, a good loan finding service knows lenders really well and won’t try getting you a loan from a lender who doesn’t fit your credit profile. This helps protect your credit score.
So to avoid hurting your credit score use a loan finding service. Make sure they do not do hard credit checks, have over 40 lenders to choose from and have great google ratings. Hint: that’s LendLab!
If you’d like us to help find you a personal or car loan from our large panel of lenders fill in our application form now. It takes less than 10 minutes!
The LendLab difference:
We'll find you a great rate from our panel of over 40 lenders
No upfront credit checks
apply in less than 10 minutes
5 star Google rating
Written by Michelle Gorsevski