The answer to this is both yes and no. Taking out a loan and repaying it in time will not affect your credit rating and will improve it as it highlights your ability to repay a loan. However, if you miss a repayment or fail to repay the loan, then, of course, your credit rating will be negatively affected. While this sounds fairly simple, there is another way to damage your credit rating and one that many people are not even aware of. If you apply for a loan and are declined, your credit score could, as a result, be downgraded, which in turn makes it even more difficult to be approved in the future.
To break this vicious and often damaging cycle, and provide everyone with equal access to loans, we enable you to perform a ‘Soft Credit Match’.