Does checking your borrowing power affect your credit score?

Short answer: checking your options doesn't have to affect your credit score. What matters is whether a lender makes a formal credit enquiry, and that normally only happens when you actually apply.

A check versus an application

When you check your options with LoanGenius, we estimate what you could qualify for using the information you give us: income, expenses, debts and the property. No credit enquiry is made, so nothing is recorded on your credit file.

When you apply for a loan, the lender requests your credit report from a credit reporting body. That application enquiry is recorded on your file, and other lenders can see it.

Why enquiries matter

• Credit enquiries generally stay on your Australian credit report for five years.
• Several applications in a short time can make lenders cautious, because it can look like you're being declined elsewhere.
• Your score is also shaped by your repayment history, which is reported under Australia's comprehensive credit reporting system.

How to check your own credit report for free

You have the right to a free copy of your credit report every three months from each of Australia's main credit reporting bodies, Equifax and Experian. Requesting your own report is a consumer right, not a credit application. It's worth doing before a big application, so you can fix any mistakes first.

How LoanGenius handles this

• Checking your options: no credit enquiry, no effect on your credit file.
• If you decide to apply: we tell you before any lender runs a credit check, and we apply with the one lender that best fits you, not a scattergun of applications.