Are short-term loans good for your credit rating?
Applying for a short-term loan will initially dent your credit rating but as long as you repay it on time and in full as agreed, then this could build your credit history and may help your credit rating to improve over time.
It’s worth noting that if you choose Sunny, you will be able to search for a loan with something called soft search. This allows a panel of lenders to take a look at your credit report and determine your likelihood of being accepted for a loan but it does not leave a mark on your credit report.
If you’re looking to get a short term loan, we’ve created this guide detailing why you might choose one, what they involve and why Sunny may be the best fit for you and your circumstances.
A short-term loan can affect your financial situation, especially if you are facing temporary financial difficulties. While it may initially lower your credit score, responsible repayment practices can lead to improvements over time. This makes short-term loans suitable for those needing quick financial relief.