Q: I received a letter in the mail telling me that I could qualify for a personal loan. Does it hurt my credit to request a quote to see what my personal loan rate will be?
The personal loan services will sometimes send letters or flyers in the mail telling you that you may be eligible to take a loan. This correspondence will direct you to the service website and ask you to fill out a form to get a quote on what your interest rate would be if you applied for the loan. Tempting as it might be, you should always be careful when credit issues are involved. Do you ask for a loan rate quote personal hurt your credit?
Lending Club request personal loan rate quote
Breathe! Request a loan rate of custom quote will not hurt
The first step for many personal loan process is to apply for a rate quote. Usually it will ask you to provide your name, address, contact information and financial information, such as your income. Sometimes your social security number will also be requested during the quotation process. You can also specify the amount you want to borrow. This basic information will be used to prove your identity and allow the lending service to perform what is known as a fresh investigation on your credit reports. A soft inquiry just look at the bases of your information and will not be registered by the credit bureaus. This information is used to determine a personal loan rate to offer if you want to make a loan application. During the quotation process, you may also be refused if your credit or financial information is deemed unworthy of a loan.
What happens if I choose to apply for a loan?
If you receive a quote for a personal loan rate that works for you and decide to go for a loan, then a difficult investigation will be made on your credit reports. This in itself is not a bad thing - hard inquiry is conducted to ensure that you get the best loan rates at the end. However, it is good to keep in mind that if you should be turned down before receiving the money, you might want to wait a while before trying again. Too many difficult questions in a close period of time on your credit report can lower your credit score.
all personal loan services not offer rate quotes before applying. It is important to learn the differences between each service before deciding which to apply for a loan with. Fortunately, we have reviewed the main personal loan services to give you a head start.