The majority of loans (if denied) will leave a mark on our credit file. ‘Soft’ search technology however is a much more appealing loan tool. Instead of leaving a footprint that can be viewed by other lenders, only you will be able to view this search on your record.

A good option for those trying to protect their credit report

Using a loan company that offers ‘soft’ search technology is a great idea for those who wish to protect their credit report. Applying for loan after loan is never a good idea as it can lead lender’s to believe you’re struggling to find money. If you’re refused more than once, other lenders are less likely to offer you a loan. A ‘hard’ credit search will leave an imprint on your credit report, which can be viewed by all other lenders. This mark could be the reason they choose not to offer you a loan.

Will applying for a loan affect my credit rating?

Applying for loan with a high acceptance rate will only affect your credit rating if you agree to actually get a loan from the company performing the credit search. The ‘soft search’ method allows those who wish to borrow to do so in confidence. In order to keep your credit history in tip-top condition, it’s wise to stay up-to-date with repayments and if you can, pay them off in full each and every month. You may need to lend again in the future and if so, your credit history must stay blemish-free.

Do many lenders use the soft searching method?

‘Soft’ searching is relatively new to the financial market but it is available from some lenders. It’s always better to opt for a lender that uses ‘soft’ searching as having too many ‘hard’ search hits on your credit record will reduce your chances when it comes to successfully applying for a loan in the future. This is because most credit companies use this data to assess your potential for a loan.