24 January 2024
Snap Finance employs a soft check methodology when checking eligibility for loan approvals, which is different from the traditional hard credit checks. However, upon completion of your loan application and making a deposit payment, a hard search will be conducted.
Checks that won't affect your credit file
When you apply for a loan through Snap Finance, we will initially conduct a soft inquiry into your credit history. This involves reviewing your credit report to gain insights into your financial background, including your payment history, outstanding debts, and other relevant factors.
Checks that won’t affect your credit file
The non-invasive nature of a soft check allows Snap Finance to assess your eligibility for a loan without any negative impact on your credit score. Whether you're approved or denied, this soft inquiry doesn't leave a mark on your credit report.
This is particularly beneficial if you are concerned about maintaining or improving your credit score while looking for finance. So, Snap Finance's use of soft checks not only streamlines the loan approval process but also protects your credit profile, offering a more flexible and responsible borrowing solution.
When we carry out a hard check
Once you decide to take out the loan with Snap Finance, we will carry out a hard check and register your loan with credit reference agencies. At this stage, it will be registered on your credit file.
How do we assess your affordability?
If you fail a traditional credit check and Snap Finance is unable to get the information required with the initial soft check, rather than rejecting your application, we may give you the option to submit your affordability through OpenBanking or the Snap Finance team may review your application manually.
Ready to apply with Snap? Click here to check your eligibility today.