Online loan application can affect your credit score. When you apply for a loan, the lender typically performs a credit check, which may be either a hard inquiry or a soft inquiry. Hard inquiries can have a negative impact on your credit score, while soft inquiries do not affect your credit score. However, once you receive the loan and start making on-time payments, your credit score can improve over time. Always check with the lender to determine the type of credit inquiry they use during the application process.