How LendingTree Offers May Affect Your Credit Score

While simply comparing loan offers on LendingTree won't hurt your credit score, moving forward with an application can. Here’s a look at how the process can impact your credit.

1. The Soft Inquiry: When you first check for potential offers, LendingTree initiates a soft credit pull. This type of inquiry does not affect your credit score and is used to match you with potential lenders.
2. Choosing a Lender: After reviewing the preliminary offers, you select the one that best fits your needs. At this stage, you are signaling your intent to formally apply with that specific financial institution.
3. The Hard Inquiry: Once you proceed with an application, your chosen lender will perform a hard credit inquiry. This formal review is noted on your credit report and can cause a temporary, minor dip in your score.
4. Rate Shopping Protection: Modern credit scoring models understand that consumers shop for the best rates. Multiple hard inquiries for the same type of loan (e.g., mortgage, auto) within a short window (typically 14-45 days) are usually treated as a single event, minimizing the impact on your score.
5. Opening a New Account: If you are approved and accept the loan, the new account is added to your credit report. This can initially lower the average age of your accounts, but consistent, on-time payments will help build a positive history.

How Much Will LendingTree Offers Affect Your Credit Score?

When you use LendingTree to shop for loans, the impact on your credit score depends on your actions. Here are a few key factors to keep in mind:

• Soft vs. Hard Inquiries. Checking potential rates on LendingTree typically results in a soft inquiry, which doesn't affect your score. Formally applying for a loan with a lender, however, will trigger a hard inquiry that can.
• Rate Shopping Window. Multiple hard inquiries for a specific loan type are often treated as a single inquiry by scoring models. This is provided they occur within a short time frame, usually 14 to 45 days.

How You Can Avoid LendingTree Offers Affecting Your Credit Score

Understand Soft vs. Hard Inquiries

LendingTree's initial process uses a soft credit pull, which won't impact your score. A hard inquiry only occurs if you select a lender and formally apply. Understanding this distinction is key to protecting your credit while you compare different loan options.

Utilize the Rate Shopping Window

Credit scoring models often treat multiple hard inquiries for the same loan type as a single event if they occur within a short period, typically 14-45 days. This allows you to shop for the best rates without your score taking multiple hits.

Limit Formal Applications

To safeguard your score, only submit a formal application once you've compared initial offers and selected the best one. Applying with several lenders will trigger multiple hard inquiries, which can lower your credit score, especially if they are spread out over time.

Ways to Improve Your Credit Score

Improving your credit score is an achievable goal that can significantly impact your financial life. With consistent, positive habits, most people can see meaningful changes to their score within a few months.

• Make timely payments. Your payment history is the most significant factor in your score, so setting up automatic payments is a great way to ensure you never miss a due date.
• Lower your credit utilization. Aim to keep your total balance below 30% of your credit limit, as this shows lenders you can manage credit responsibly.
• Check your credit reports. You can get free reports from the three major bureaus to find and dispute any errors that might be dragging down your score.
• Diversify your credit mix. Lenders like to see that you can handle different types of credit, such as a mix of credit cards and installment loans.
• Limit hard inquiries. Applying for too much new credit in a short time can temporarily lower your score, so try to space out your applications.
• Become an authorized user. Being added to a credit card account with a strong payment history and low balance can help build your own credit profile.

The Bottom Line

Using LendingTree Offers to compare loan rates generates a soft inquiry, which won't impact your credit score. However, formally applying for a loan with a lender will result in a hard pull.

Frequently Asked Questions

Will checking offers on LendingTree lower my credit score?

No, viewing personalized loan offers on LendingTree only requires a soft credit inquiry, which does not affect your credit score at all.

What happens if I accept an offer through LendingTree?

If you accept an offer, the lender will perform a hard credit inquiry to finalize the loan, which may cause a temporary, small dip in your score.

Do multiple applications through LendingTree count as one inquiry?

Yes, credit bureaus typically group multiple hard inquiries for the same type of loan within a short period, treating them as a single event to minimize impact.