Refinance Loans UK — Does an Eligibility Check Affect Your Credit Score?

Short answer: An initial eligibility check is usually a soft search and will not affect your credit score. A formal application (after you decide to proceed) commonly triggers a hard search which is recorded on credit files and can have a small, temporary impact—especially if there are multiple hard searches in a short period.

Ready to compare refinance options? Start a Free Eligibility Check and we’ll match you with lenders or brokers that suit your business: Get Quote Now — Free Eligibility Check.

Quick summary: Soft search vs Hard search

A soft search (or soft credit check) is commonly used to assess initial eligibility. It checks limited data and does not appear on the public section of credit files seen by other lenders; it does not affect credit scores. Soft checks are used to shortlist providers and give indicative terms.

A hard search (or hard credit check) is performed when you make a formal application. Hard searches are recorded on credit files at credit reference agencies such as Experian, Equifax and TransUnion and can be visible to future lenders. Multiple hard searches over a short period can have a greater effect than a single hard search.

Business vs personal files: lenders may check a company credit file for limited companies but will often check director personal credit files if a personal guarantee is sought. If your business requires at least £10,000 of funding, checks will be similar but may vary by lender and product.

What happens when you request a refinance eligibility check?

When you complete a quick enquiry with UK Business Loans we use the details you provide to match your business with the best-suited lenders and brokers. That initial matching is normally based on non-sensitive commercial data and results in a soft eligibility check by our partners.

• We collect basic business information (company name, turnover band, time trading, loan amount and purpose).
• Our partners typically run a soft search to confirm high-level eligibility before contacting you with indicative offers.
• A hard credit search is only performed if you (the business) agree to a formal application with a lender or broker and give explicit consent.

Common lender checks for refinance: company credit score, filed accounts, trading history, outstanding charges, and director details when PGs are involved. Our process minimises risk to your credit profile by encouraging soft-search first engagement.

Get Quote Now — Free Eligibility Check

Takes 2 minutes. No obligation. We’ll only share your details with lenders & brokers who match your case; hard searches need your consent.

Why refinance lenders may need a hard search

Lenders require reliable verification before offering formal refinance terms. A hard search helps them:

• Verify identity and credit history for affordability and risk assessment.
• Check previous borrowing and repayment patterns.
• Conduct fraud prevention and anti-money-laundering checks.
• For secured refinance, confirm existing charges and valuation information (these are legal checks separate from credit searches).

Typically a hard search is made after you accept an offer and complete a formal application. Lenders must obtain your consent before performing a hard search. Ask any lender or broker exactly when they will run a hard search and whether a soft eligibility check is possible first.

How much will a hard search affect my credit score?

The common effects are:

• Single hard search: often a small, short-lived drop in score.
• Multiple hard searches: greater cumulative effect, particularly if many are within weeks.
• Credit history and profile matter: borrowers with thin files may see bigger swings than well-established businesses/directors.

Business credit files behave differently to consumer files — commercial CRAs weigh registration, filing history, and payment behaviour. Where directors are checked, personal credit scoring rules apply. A sensible approach is to use soft-search tools to build a shortlist of lenders, then submit one or two formal applications when you have the strongest offer.

Refinance-specific considerations

Refinancing often aims to consolidate debt, improve terms, or move from one lender to another. Key points:

Personal guarantees and director checks

If the refinance requires a director personal guarantee, expect lenders to look at directors’ personal credit histories. This is a common trigger for a hard search at application stage.

Secured vs unsecured refinance

Secured refinance (property or asset-backed) may involve legal charge/land registry checks and valuations; these are separate from CRA hard searches, though a lender may still perform both legal and credit searches.

Strategy for refinancing

1. Start with soft-search eligibility checks to compare likely offers without affecting credit files.
2. Shortlist 2–3 lenders or brokers who provide the best preliminary terms.
3. Make a single formal application when ready to reduce multiple hard searches.

For details on solutions designed specifically to restructure business debt, see our page on refinance loans.

Practical tips: minimise credit impact when shopping for refinance

• Always ask whether a lender will do a soft or hard search before giving details.
• Use broker marketplaces or introducers (like us) that encourage soft searches first.
• Limit formal applications to one or two lenders once you’ve shortlisted.
• Group formal applications to a short window if multiple are necessary — some lenders treat rate-shopping windows favourably (confirm with them).
• Keep paperwork ready (accounts, bank statements) to speed formal application and reduce repeated checks.

What UK Business Loans does for you

We match your business with lenders and brokers who specialise in business refinance and other commercial funding from £10,000 and upward. Our service is free to use and no obligation — we introduce you to partners who can provide quotes and next steps.

We do not lend and we do not perform credit searches ourselves. Our initial matching commonly leads to soft eligibility checks by partners; any hard credit searches are only done with your consent.

Frequently asked questions

Will submitting an enquiry with UK Business Loans affect my credit score?

No — submitting an enquiry to us is used to match you to lenders and typically leads to a soft eligibility check only. Hard searches require your consent.

What exactly is a soft credit search?

A soft search checks limited credit information to assess eligibility. It’s not visible to other lenders and doesn’t affect credit scores.

When will a hard search be performed?

A hard search is usually performed when you make a formal application or agree to proceed with a lender or broker. The lender will ask for your explicit consent before running it.

Can I refuse a hard search?

Yes — you can refuse, but refusing may prevent a lender from completing the formal application or issuing final terms.

Will lenders check my personal credit for a business refinance?

Often yes, particularly if a director personal guarantee is requested or the lender requires assessment of personal affordability for smaller businesses.

Ready to check your refinance eligibility?

If you’re ready to compare refinance options with minimal impact to your credit profile, start a Free Eligibility Check and we’ll match you to lenders and brokers who suit your business needs: Start Your Free Eligibility Check.

1. Will an eligibility check affect my credit score? — An initial eligibility check is usually a soft search that won’t affect your credit score, while a formal application typically triggers a hard search that may cause a small, temporary drop.

2. What is the difference between a soft search and a hard search? — A soft search assesses eligibility without showing on other lenders’ records or impacting scores, whereas a hard search is recorded on credit files and visible to future lenders when you apply formally.

3. Does submitting an enquiry with UK Business Loans count as applying for a business loan? — No—the enquiry form is just to match your business with suitable lenders and brokers and normally leads only to a soft eligibility check unless you consent to a formal application.

4. Will lenders check my personal credit for a business refinance or business loan? — Lenders often check directors’ personal credit if a personal guarantee is required or for smaller businesses, while larger limited companies may be assessed on company credit files.

5. How can I minimise the impact of credit checks when shopping for a business loan? — Use soft-search tools to shortlist lenders, limit formal (hard-search) applications to one or two, and group any necessary hard searches within a short window.

6. What types of finance can UK Business Loans connect me with? — We connect businesses to lenders and brokers for business loans, refinance loans, asset finance, invoice finance, cashflow loans and green/sustainability finance across the UK.

7. How quickly will I hear back after starting a free eligibility check? — Most businesses receive a response from matched lenders or brokers within a few hours of submitting the quick enquiry form.

8. Is UK Business Loans a lender and does it cost to use the service? — No, we are an introducer that does not lend or provide regulated financial advice, and our matching service is free and no-obligation.

9. What information do I need to start an eligibility check for a UK business loan? — You typically need basic details like company name, turnover band, time trading, desired loan amount and the purpose of the finance to start an eligibility check.

10. Can I get a business loan in the UK if I have bad credit? — Yes—some specialist lenders and brokers in our network consider businesses with imperfect credit records, though rates and terms may vary.