Soft Search Loans

What are they and do they exist?

Looking for a loan? If the jargon has left you feeling confused, our guide to the difference between a soft credit search and a hard credit search could help you.

Little Loans is a credit broker, working with a panel of lenders to try to match you with a suitable loan. We do this using a soft credit search, which could help protect your credit score from multiple hard searches.^*

• Search for a loan amount between £100 and £10,000.
• Repay your loan in monthly instalments from 3 to 60 months, depending on how much you apply to borrow.
• Our service is free to use.
• No-obligation quote.
• Search for a loan with no impact to your credit score.^*

^*If you’re matched with a loan and you choose to go ahead and make a full application, you will undergo a creditworthiness assessment directly with the lender. This will include a hard search or Open Banking. A hard search will leave a footprint on your credit file for up to 12 months and will affect your credit score.

Will a credit search affect my credit score?

If you have poor or bad credit, you may be wondering how searching for a loan might impact your credit score.

When you apply for a loan directly with a lender, they’ll assess your creditworthiness with a hard credit search. Each hard search will leave a mark on your credit file and too many hard searches within a short space of time could have a negative effect on your credit score.

When you search for a loan using a credit broker, such as Little Loans, your information is shared with a panel of over 30 lenders at the same time to try to find you a suitable match. This is all covered by one soft search.

What is a soft search?

A soft search is sometimes called a soft credit search or soft credit check. It gives credit brokers and potential lenders an insight into your financial history without affecting your credit score.

A soft search could be an ideal way to check how likely you are to be approved for a loan before deciding whether to make a full application.

Why you might consider using a soft search eligibility checker before applying for a loan

Searching for a loan can be confusing, especially if it’s something you’ve never done before. Using a credit broker like Little Loans could save you time and help you understand your options.

A soft search eligibility checker will show you your chance of approval before you make a full application.

Soft search vs hard search

Soft search	Hard search
Provides an overview of your financial profile and history.	Provides an in-depth view of your financial profile and history.
No impact on your credit score.	Too many hard searches over a short period of time could lead to a decline in your credit score.
Doesn’t leave a footprint on your credit file and is only visible to you and the company who carried out the check.	Leaves a footprint on your credit file and can be seen by other potential lenders and providers. Can remain on your credit file for up to 12 months.
Can be carried out by credit brokers and lenders to assess your eligibility.	Usually carried out directly by lenders as part of their decision-making process.

What are soft search loans, and can I get a loan with just a soft search?

There is no such thing as a soft search loan. You cannot get a loan solely from a soft search.

A responsible lender will always carry out a creditworthiness assessment as part of the application process. This is usually a hard credit search, but some lenders use Open Banking to determine if you will be able to make your monthly repayments. Whichever method your lender uses, always make sure that they are authorised and regulated by the Financial Conduct Authority (FCA). You can check this here.

Who can search for a loan with Little Loans?

To search for a loan with Little Loans, you must:

• Be over the age of 18;
• Be a UK resident with a UK address;
• Have a UK bank account with a valid debit card; and
• Have a regular source of income paid directly into your bank account.

What information do I need to provide for a soft search?

To search for a loan with Little Loans, you’ll be asked to provide some information, such as:

• How much money you need to borrow and for how long.
• What you plan to use the money for.
• Your personal details, such as your name; living situation; address; date of birth; telephone number; email address; relationship status; and number of dependents (if applicable).
• Your employment status, including how long you’ve been employed at your current place of work (if applicable).
• Your income and upcoming pay dates.

We’ll also ask for your bank details, including your sort code and account number, so that we can ensure you can receive your loan, if approved.

Little Loans do not charge any fees for our service and cannot take any money from your bank account.

How it works

The Little Loans process is straightforward.

1. Choose your loan amount and term and fill in our online form - this should take no longer than five minutes.

2. In just 60 seconds, we’ll run a soft search and scan our panel of lenders for a suitable loan for your circumstances.

3. If we’ve found you a match, you’ll be transferred to the lender’s website to complete some additional checks. A creditworthiness assessment, either in the form of Open Banking or a hard credit search, will also be carried out by the lender at this stage.

4. The lender’s decision to accept your application will be based on various factors, such as your affordability and the result of your hard credit check. If the lender is happy with the results of these checks, you’ll be offered a loan.

Some of the lenders on the Little Loans panel can send your money on the same day your loan is approved. The time it takes for the money to appear in your account will depend on your bank’s policies and procedures.

Can I get a loan with bad credit?

There are lenders, including some of those on the Little Loans panel, who specialise in loans for those with a poor credit history.

Ways to improve your credit score

A good credit score could open up your borrowing options and give you access to more desirable rates of interest.

• Sign up to the electoral roll.
• Check your credit report for errors.
• Try to limit your credit applications to reduce the risk of multiple hard searches on your credit file.
• Be mindful of how financial association could impact your credit score. Sharing a credit account with somebody who has poor credit history could have a negative impact on your score.
• Ensure all your bills are paid on time.
• If you have a credit card, aim to keep your utilisation as low as possible and stay well within your credit limit. You should also avoid using your credit card to withdraw money from a cash machine.

You can check your credit report and view your credit score through one of the three main credit reference agencies (CRAs) in the UK:

• TransUnion
  TransUnion is free to use.


• Equifax
  Once Equifax’s 30-day free trial period comes to an end, membership costs £14.95 per month.


• Experian
  Experian users can access their score and a basic overview of their credit history for free, although further insights are available with a paid CreditExpert account, which is priced at £14.99 a month.

I’m worried about my finances; where can I turn for help?

Money stress is something that many of us will experience in our lifetime and we understand how consuming these worries can be.

Please know that free, impartial help and advice is always available across a variety of confidential websites such as StepChange, MoneyHelper, National Debtline, and Citizens Advice.