Credit checks explained: what happens when you apply

The two kinds of search

A soft search checks your eligibility and leaves no footprint visible to other lenders — it does not affect the score. A hard search is recorded and visible, and is made when you formally apply. The distinction matters because hard searches accumulate.

What each is used for

Lenders use a soft search to give an indicative decision or quote before you commit — a safe way to gauge your chances. The hard search comes at full application, when the lender is seriously assessing you. Wherever possible, check eligibility with a soft search first.

How they affect your file

One hard search has little effect, but several in a short window can suggest financial strain and dent the score. Scattering applications across many lenders at once is therefore self-defeating. Space them, and apply only where you have a real chance.

Company vs personal checks

For company-only lending with no personal guarantee, the check is on the company, not on you personally. See no-PG loans and checking your report.

Check before you commit

Confirm affordability yourself first, so any hard search comes on an application you expect to succeed.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.