Sunny Credit Check

Sunny Credit Check

When applying for any type of credit product, it’s inevitable that the lender will undertake checks to verify your identity and ensure you can afford your borrowing. In many cases, this is a credit check, which verifies that you are who you say you are and assesses how you’ve managed money and borrowing in the past. This helps lenders to determine whether you can make the payments on the amount you want to borrow.

It’s important that you understand why we, or any lender, conduct credit checks. Here, we’ve taken a look at the credit checks we carry out, what they involve and why we do them.

Why Sunny performs a credit check

We are committed to responsible lending and so each time you apply for a loan with Sunny, we will perform a credit and affordability check. This is the case even if you’ve borrowed from us before. We will use the information you present us with to identify you, and then use that, along with information we receive from Credit Reference Agencies to confirm you not only meet our basic eligibility requirements, but that also you meet our other lending criteria. Then, we can approve you – or not – for a loan.

What kind of credit checks does Sunny perform?

There are two kinds of credit check that we perform. A soft search, and a hard search. A soft search is designed to help you understand how likely you are to be approved for a loan, without affecting your credit score. Meanwhile, a hard search, which is usually conducted when you apply for credit, will impact your credit score. Here at Sunny, we use both kinds of credit check in different ways.

What is a soft search?

A soft search allows us to give you an indication of whether you are likely to be approved for a loan, without affecting your credit score. It leaves a mark on your credit report that only you – nobody else – can see, and so it isn’t taken into account when your credit score is calculated. A soft search is also called a quotation search; insurance companies usually perform these when you are looking at insuring something, such as your home or car, with them.

We use soft searches with first-time Sunny applicants to help them decide if they should apply for a loan with us. Using the information you supply and that which we get from your credit report, we can give you an impression of how likely you are to be approved by Sunny. If you’re not likely to be approved, then you won’t be able to continue. If you are likely to be approved, then you can decide whether to go ahead with your application or not.

What is a hard search?

A hard search delivers similar information to a soft search, but will register a record on your credit report that both you and other lenders can see. You may find that a new hard search record on your credit report causes your credit score to drop a little, however, this should recover in time, particularly once you start to make repayments on your loan. When a lender is considering your application they may factor in how many recent searches are listed on your credit report. If your credit report shows a number of searches in a short period of time, it may indicate to a lender that you are struggling financially, which is a red flag for them.

As even rejected applications will show on your credit report if a hard search is performed, it’s important that when you apply for credit, you do so only after careful consideration, which includes shopping around to find the best type of loan for your needs, from a provider who is likely to approve you.

As well as requesting information about you when you apply to us, we also share information about your account with the Credit Reference Agencies – Experian, Equifax and TransUnion – so that they can keep your records up to date. You can read more about how we use the information you provide us with in our privacy policy.

Ready to apply?

If you need a short-term loan and understand and are happy for Sunny to run a soft credit check on you as well as a hard search if you decide to apply, then we’re here to help. Find out more about our loans and interest charges by clicking below, then continue on to apply.

More reading material

Looking for a little more information around Sunny and our loans? We have some more guides available to read below.