If you’re considering using LendingClub for your financial needs, you might be wondering about its impact on your credit score. LendingClub, like many other lending platforms, conducts credit inquiries when you apply for a loan. These inquiries can be categorized as either soft or hard inquiries, each with its own effect on your credit.
Soft inquiries are the initial checks performed when you’re pre-qualified for a loan. The good news is that these soft inquiries do not affect your credit score. They are simply a way for LendingClub to provide you with personalized loan offers based on basic information.
Hard inquiries, on the other hand, are more significant. When you officially apply for a loan with LendingClub, they will conduct a hard inquiry, which can have a slight negative impact on your credit score. This is because hard inquiries are visible on your credit report and may indicate to other lenders that you are actively seeking credit.
In summary, LendingClub’s soft inquiries won’t impact your credit scores at all, which is great for exploring loan options. However, hard inquiries, which occur when you formally apply for a loan, can have a small negative impact on your credit temporarily.
(Response: LendingClub’s soft inquiries do not hurt your credit, but hard inquiries can have a slight negative impact.)