Will Applying for a Loan Affect My Credit Score?

Borrowing money can be a fun and exciting opportunity, but it can also be very stressful. In an Internet era in which online applications are common, it is very easy to fill out basic financial information and apply for personal loans, car loans and credit cards in a matter of minutes. Many lenders will also give borrowers a decision within minutes. Instant approval loans are becoming a very hot topic for borrowers throughout New Zealand.

Applying for one loan will not negatively affect your credit score. In fact, credit bureaus expect borrowers to apply for loans throughout their life. If you have a strong credit history in which you have made payments on time and in full, you have a low debt utilisation ratio and you have not defaulted on any loans your credit score may benefit from taking out a loan. You can apply online for a Nectar loan today at this link.

With applications being almost effortless borrowers are left wondering if applying for a loan or many loans will affect their credit score? If I apply for 10 loans in one night, what does this tell the credit bureaus about me?

Before hitting submit multiple times in one evening or even one week, it is important to understand that applying for several loans in a short amount of time could negatively affect a credit score. Credit bureaus understand that borrowing money is acceptable but attempting to borrow too much money it too short of a time frame looks suspicious. It looks very suspicious if you have been declined for several loans yet you continue to apply for more loans.

Good credit borrowers will apply for loans but they will not apply for dozens at a time. You are safe to submit an online application but don’t do it many times in just a few days.