We know one of the biggest worries people have about applying for a loan is: “What if I get rejected? Will that hurt my chances with other lenders?” It’s a completely understandable concern, and for years, the answer was unfortunately “yes, it might.”
But here’s some genuinely good news: when you apply for any loan with London Mutual, there’s absolutely no risk to your credit score if we can’t approve you. You can apply completely risk-free, and we think that’s how it should be.
Why most loan applications used to be risky
Traditionally, when you apply for credit anywhere, lenders run what’s called a “hard search” on your credit file. This search leaves a mark that other lenders can see, showing them that you applied for credit and whether you were approved or rejected.
This created a frustrating catch-22 situation: if you had several loan applications rejected, future lenders could see this pattern and assume you were desperate for money or a poor credit risk. Even worse, if you were genuinely just shopping around for the best deal, you could accidentally damage your credit score in the process.
The result? Many people were afraid to apply for loans they actually qualified for, just in case they got turned down and hurt their chances elsewhere.
How our ‘soft search’ approach works
We use what’s called a “soft search” for all our loan applications. Here’s what that means in practice:
If we approve your loan:
- We’ll start reporting your payments to credit agencies after your first payment
- As long as you keep up with repayments, this will actually help your credit score
- Other lenders will see you as someone who manages credit responsibly
If we can’t approve your loan:
- There’s no trace of your application on your credit file
- Other lenders won’t know you applied with us
- Your credit score is completely unaffected
- You’re free to try elsewhere without any negative impact
What this means for you
- Peace of mind: You can apply without worrying about damaging your credit score if things don’t work out.
- Better decision-making: You can take time to consider whether our loan terms work for you, rather than feeling pressured to accept the first offer you get.
- No penalty for shopping around: If you want to compare offers from different lenders, you won’t be punished for checking your options.
- Fair treatment: We don’t think you should be penalised just for asking about borrowing money, especially when you might be dealing with financial stress already.
The bigger picture
While we can’t guarantee we’ll approve every application (responsible lending means we sometimes have to say no), we can guarantee that asking won’t hurt you.
This approach fits with our broader philosophy about lending: we believe the process should be fair, transparent, and as stress-free as possible. Money worries are hard enough without adding anxiety about whether simply applying for help might make things worse.
Ready to apply?
If you’ve been thinking about a loan but holding back because you weren’t sure about your chances, this removes that worry. You can apply knowing that if we can’t help this time, it won’t affect your ability to get credit elsewhere.
After all, there really should be no harm in asking.
