Answer

Is the credit check soft or hard when I apply?

An early eligibility check is usually a soft search, which does not affect your credit score; a hard search normally happens only when you proceed to a formal application. Soft searches are visible only to you and leave no mark others can see. A hard search is recorded and can be seen by other lenders, which is why it comes later, once you have decided to go ahead.

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Soft firstEligibility checks don't mark your file

Hard laterRecorded at formal application

CompanyCredicorp assesses the business

Soft versus hard searches

A soft search is a look at credit information that does not leave a visible footprint for other lenders; only you can see it. A hard search is logged on the file and visible to others, and several in a short window can dent a score. This is why early, no-obligation checks are designed to be soft. See will applying for a loan hurt my credit score.

Why the order matters

Running a soft check first means you can find out whether borrowing is realistic before anything is recorded. Only when you choose to proceed to a full application does a hard search typically take place. That keeps casual enquiries from marking your file.

Whose file is checked

Because Credicorp lends to the company and not the director personally, the focus is the business's own credit position and trading. For how that sits alongside your personal file, see do business loans affect my personal credit.

Frequently asked questions

Will checking my eligibility lower my score?

A soft eligibility check does not affect your score and is not visible to other lenders. Only a hard search, usually at formal application, is recorded for others to see.

How many hard searches is too many?

There is no fixed number, but several hard searches in a short period can suggest you are seeking credit widely, which lenders may read cautiously. Spacing applications helps.