Personal guarantees and credit file

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Does anyone know if a personal guarantee for a business loan leaves a mark on your personal credit file/ score?

We are looking at applying for a business loan through Funding Circle, and they mention about performing credit checks on all the directors in relation to the personal guarantees.

I just want to make sure I have all bases covered as I will be applying for a mortgage in the coming months, therefore I don't want to hamper this if possible by having these extras marks on my credit file.

 

[QuickRebates]

They would most likely carry out a hard credit check, whether they leave an entry on your credit file would probably change from company to company. I would imagine they would at least carry out a soft search.

Also, mortgage lenders have different policies to how they view your credit profile. For example, some might only look at credit checks in the last month but some may look back twelve months.

It would be advisable that you speak with a mortgage broker / advisor.

 

[Neil Lukins]

In our experience it is usually a Hard credit check on the business and a Soft check on each of the Directors / majority shareholders.

Obviously this differs per lender so best to check before you apply as the credit checks are often completed at the outset.

A single soft footprint should not hamper a mortgage application but having multiple in a short period of time would send alarm bells ringing.

If you get declined by Funding Circle DM me and I can advise you on what's available on the market.