Do debt consolidation loans hurt your credit score?
Debt consolidation can cause a temporary dip in your credit score but can improve your rating over time.
This is because being accepted for a loan will require what’s known as a ‘hard search’ – a type of credit check that will leave a record on your file which can lower your credit score and can be seen by other lenders.
But over time, debt consolidation loans may help to improve your credit score. That’s because having one monthly repayment can make it easier for you to pay on time, every time.
Receiving a quote for a debt consolidation loan from Shawbrook Bank won’t affect your credit score as the record, known as a ‘soft search’, isn’t visible to anybody but you. You will only impact your credit score if you apply for the loan.