Loan Quote Impact? Here's How to Protect Your Score

Securing a loan can be a daunting task, especially when you’re worried about how loan quotes might impact your credit score. Whether you're a first-time homebuyer, looking to refinance, or simply curious about the loan process, understanding how loan quotes affect your credit score is crucial. The good news? You're not alone in this journey. With the help of Esteb and Co, which has access to over 83 lenders, you can navigate this process with confidence.

Understanding Loan Quotes and Credit Scores

When you're in the market for a loan, receiving a loan quote is often the first step. A loan quote gives you an estimate of the interest rate and terms you might expect based on preliminary information. But does this process affect your credit score? It's essential to distinguish between a soft enquiry and a hard enquiry. A soft enquiry, which occurs when you request a loan quote, does not impact your credit score. In contrast, a hard enquiry, which happens when you formally apply for a loan, might cause a temporary dip in your credit score.

Current Market Rates and Loan Quote Process

In 2026, the Australian financial market remains competitive, with interest rates fluctuating between 6.49% and 12% depending on the type of loan and the borrower's creditworthiness. The process of acquiring a loan quote generally involves providing basic information such as your income, employment status, and the amount you wish to borrow. Most lenders offer online tools to facilitate this process.

Steps to Obtain a Loan Quote

Obtaining a loan quote without affecting your credit score is straightforward if you follow these steps:

1. Research Lenders: Start by researching potential lenders. With Esteb and Co, you have access to a broad panel of 83+ lenders, ensuring you can find one that suits your needs.
2. Use Online Loan Calculators: Before requesting a quote, use online calculators provided by lenders to estimate your potential rates.
3. Request a Loan Quote: Provide your basic financial information to receive a preliminary loan quote. Remember, this is a soft enquiry and won’t affect your credit score.
4. Compare Quotes: Carefully compare the quotes you receive, taking note of the interest rates, loan terms, and any additional fees.
5. Proceed with a Formal Application: Once you choose your preferred lender, submit a formal application. This will trigger a hard enquiry.

Expert Tips and Considerations

When navigating loan quotes and credit scores, keep these expert tips in mind:

• Shop Around Within a Short Timeframe: Multiple hard enquiries within a short period (typically 14 to 45 days) are often treated as a single enquiry by credit bureaus.
• Maintain a Strong Credit History: Regularly check your credit report for errors and pay down existing debts to improve your credit score over time.
• Consider Professional Advice: Engage with a mortgage broker, like Esteb and Co, to leverage their expertise and lender network.
• Understand the Impact of Enquiries: While a single hard enquiry may only slightly affect your score, multiple enquiries can have a more significant impact.

Frequently Asked Questions

1. Does getting multiple loan quotes hurt my credit score? No, requesting multiple loan quotes results in soft enquiries, which do not impact your credit score.
2. How long does a hard enquiry affect my credit score? Typically, a hard enquiry may affect your score for 12 months but remains on your credit report for two years.
3. What is the difference between a soft and hard enquiry? A soft enquiry occurs when you or a company checks your credit report for informational purposes, while a hard enquiry happens when a lender reviews your report to make a lending decision.
4. Can I see who made a hard enquiry on my credit report? Yes, your credit report will list hard enquiries, including the date and the name of the organisation that made the enquiry.
5. How can I improve my credit score before applying for a loan? Pay your bills on time, reduce debt levels, avoid new credit applications, and review your credit report for inaccuracies.
6. Will checking my credit score lower it? No, checking your own credit score is considered a soft enquiry and does not impact your score.
7. How often should I check my credit report? It’s advisable to check your credit report at least once a year to ensure accuracy and monitor your credit health.