How to obtain a loan without hampering your credit score?

Credit score plays a vital role when you are applying for a loan. Your creditworthiness helps the lenders in analysing your eligibility for a loan. A stellar credit score increases the chance of getting a loan. No lenders willingly risk themselves to lend out to someone with a low credit score. Thus, it is necessary to maintain a high credit score. There are generally 3 credit reference agencies who compile the credit reports in the UK. They are Experian, Equifax and TransUnion (formerly CallCredit). All the financial activities like bills payment, repayment of loans, credit card payment, etc. of every individual are recorded by these agencies. Different agencies have different models for processing credit ratings. 

Now, the question is how obtaining a loan can hamper credit score? Most of us are fully aware of the fact that the FCA has made hard credit check mandatory for before approving a loan. And a hard credit check hampers credit score. Thus, get a loan through those loan brokers who imparts soft credit check when you seek for loans. A soft credit check is a formal review of the credit report and doesn’t impact the credit score. It is done to assess loan eligibility in the initial stage. Before the final approval, a hard credit check is conducted.

An individual with a bad credit score can apply for a wide range of personal loans such as Payday Loans with Soft Credit Check, wedding loans, doorstep loans, etc., Some lenders may not consider a credit score as the only deciding factor for a loan.

Maintain your credit score as that defines your financial behaviour.

Source: https://oysterloan.wordpress.com/2019/03/08/how-to-obtain-a-loan-without-hampering-your-credit-score/