What are personal loan rates and how does a soft search affect them?

29 Aug 2026, 17:00
Q A Reader Asker

What are personal loan rates and how does a soft search affect them?

A PoundWise Team Answered by

Personal loan rates refer to the interest rates applied to loans based on factors like your credit score, income, and financial history. A soft search is a way for lenders to check your credit without it affecting your credit score, allowing them to provide personalised loan options. This can help you see potential rates before making a formal application. When you proceed with a full application, a hard search will be conducted, which could impact your credit score. To better understand your options, consider consulting a regulated financial adviser.

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