Yes, getting a personal loan through Upstart does affect your credit score. Once you agree to a loan offer from the lender, a hard credit check will be performed which affects your score. Although taking out a loan may cause a slight dip in your credit score, making payments on time will have a positive impact on your credit as well.
What Affects Your Credit Score
Here are some factors which affect your credit score:
Missing Repayments
If you miss a repayment on a loan, the lender may record it as a default on your credit report. This significantly lowers your credit score and stays on your report for up to 6 years.
Opening New Bank Accounts Frequently
Opening a bank account lowers your credit score, but this drop is temporary as the score recovers with time. However, opening bank accounts frequently won't allow your credit score to recover.
Frequently Applying for Credit
A hard credit check is made when you apply for credit. Now if you do that multiple times, your credit score will drop by a lot.
Borrowing Too Much
If you borrow an amount that you are not able to pay off, the lender can try to reclaim their money by applying to make you bankrupt. This will tremendously reduce your score and make it difficult to apply for any future loans or even open a bank account.
Best Places to Get Personal Loans without Hard Credit Check
Here are some of the best websites you can visit to get personal Loans without hard credit checks:
WeLoans
WeLoans offers great rates for personal loans without the need for a hard credit check, along with many other loan products available for all kinds of borrowers.
CocoLoan
Cocoloan provides personalized and accessible offers that are tailored to the needs of the applicants. This way borrowers receive the best rates in the market through this site.
UnityLoan
UnityLoan makes applying for a loan much easier and more streamlined. There is no need to fax documents and their application process takes just a few minutes, entailing many loan offers after approval.