Does borrowing from affect my credit score?

Yes — when you apply for a loan, your information is sent to a UK credit reference agency and the search will be noted on your credit record whether or not your application is successful. If you make repayments on time then this may improve your credit score. As people can have a poor credit score simply due to not having previously used credit very much, a loan can also help to pad out a thin credit file and increase your credit score for that reason. However, if you don't repay or are late in repaying your loan then this could have a negative effect on your credit score.

See our privacy policy for further information on how your information is used by credit reference agencies.


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