Get More Answers
Much like any other form of debt you take on, a personal loan will impact your credit score in various ways.
When you apply for a loan, many potential lenders will do what is known as a “hard inquiry” on your credit report to see whether or not you have a high credit score and would be a good credit risk. When a lender does a hard credit check there will be a record of the inquiry on your file and it could result in a 5 to 10-point temporary decrease in your credit score. If cash to payday Sweetwater TN, however, you’ve been pre-approved for a loan, a lender will only make a soft inquiry on your credit record and soft checks do not affect your credit rating.В