Will asking about finance affect my credit score?
Sterling's answer Asking me does nothing to your credit file, because Ask Sterling never runs a credit search. If our funding partner or a funder searches later, ask them first whether it is a soft or a hard search.
Want a straight answer for your business?
See who'll fund meAsking Ask Sterling does not affect your credit score, because we never run a credit search. If you choose to send your enquiry on, our funding partner or a funder they work with may search your file later, and it could be a soft search. A soft search does not affect your score; a hard search can, if you collect several in a short time.
Who searches, and when
Ask Sterling asks a few questions about your company and, only with your consent, passes the enquiry to one funding partner. Nothing in that step touches a credit reference agency.
Later on, a funder may want to look at your file, and for a limited company that often includes the director's personal file, especially where a personal guarantee is involved. That search is their processing, under their own privacy notice and the credit reference agencies' joint information notice (the CRAIN).
Soft search vs hard search
| Soft (quotation) search | Hard (application) search | |
|---|---|---|
| When it is used | Checking eligibility or getting a quote | A full application for credit |
| Who can see it | You and the credit reference agency | Other lenders too |
| Effect on your score | None | Several in a short time can lower it |
| Needs your permission | Should be explained to you | Yes |
Equifax puts it plainly: soft searches won't affect your credit score, while all hard searches appear on your report and too many in a short period may affect it. It also says third parties cannot run a hard search on you without your permission.
The ICO's guidance says organisations can carry out quotation or "quick quote" searches that do not show you have applied for credit, and that while you are shopping around you should make clear you only want a quotation.
How long searches stay on your file
The same ICO guidance says Experian and Equifax keep most search information for one year, and TransUnion keeps search information for two years.
Sterling's take: one hard search is rarely the problem. Six in a fortnight, from six brokers you filled forms for, is.
Why "one partner" matters
Plenty of comparison sites send your details to many firms at once. Each one that runs a hard search leaves a footprint. Ask Sterling sends your enquiry to one funding partner only, with your consent, and they may share it with funders they work with only with your permission. Ask them which funders, and whether each search is soft or hard, before you agree.
What to do next
- Check your own file first, so you see what a funder will see before they do.
- If there is a CCJ or default in the last 12 months, read do CCJs stop business finance before applying anywhere.
- When a funder asks to search, ask "soft or hard?" and note the answer.
- Read who you'll speak to so you know who is calling and why.
Ready for a straight answer?
Two minutes of questions. One funding specialist. No impact on your credit score.
Questions owners ask
Does Ask Sterling run a credit search?
No. Ask Sterling asks questions and, with your consent, passes your enquiry to one funding partner. We never search your credit file.
Will the funding partner search my credit file?
They or a funder may run one later in the process, and it could be a soft search. You can ask before any search is made, and you should.
Can other lenders see a soft search?
Generally no. Quotation or soft searches are designed so they do not show other organisations that you applied for credit.
How long does a hard search stay on my file?
According to ICO guidance, Experian and Equifax keep most search information for one year and TransUnion keeps it for two years.