Credit is a valuable resource and an important factor in determining your financial future. So, when considering any new financial product, you should be mindful of its potential impact on your credit score. With that said, many individuals are curious about Loanosity and if using it can hurt their credit. We provide an overview of this company in our Loanosity Review.
Will Loanosity Hurt My Credit?
Loanosity is an online marketplace that connects borrowers with lenders, allowing them to quickly compare loan offers from multiple sources. While this process could potentially save borrowers time and money, they should be aware of how applying for multiple loans through Loanosity might affect their credit score.
The good news is that the Loanosity platform has certain safeguards in place to protect borrowers against potential damage to their credit scores. Specifically, each lender who partners with Loanosity performs a soft pull of a borrower’s credit report prior to displaying loan offers. This type of inquiry does not negatively affect your score because lenders do not see individual results; instead, they only see the general range in which your score falls, such as “good” or “excellent,” rather than seeing the actual score itself. Once a borrower applies for the selected loan offer, then the lender will perform a hard pull of the report, and any inquiries made within 14 days count as one single hit to your credit report.
It’s also important to note that simply having multiple loans listed on your credit report does not necessarily hurt your overall score either; however, several factors will come into play, such as how much debt you currently have versus available funds or if those accounts are current and active or if they were closed with zero balances (because this shows lenders that you were able to manage those debts properly).
Overall, utilizing Loanosity can help you effectively shop around for competitively priced loans without damaging your credit score as long as you maintain healthy borrowing habits and practice responsible money management.