Lynn J.
Lock your credit report before you apply!
This information is accurate to the best of my knowledge at the time of this posting. I have found out that Fiona loan exchange application service is lying to its customers. "Fiona is an online marketplace where you can explore different lender options based on your credit, how much you want to borrow, what you want to use the loan for, and where you live. Fiona helps you compare lenders from its network if you apply for a loan through its platform." (Creditkarma.com) As illustrated below, I applied for a loan consolidation loan on Fiona's website. I keep my credit report locked through TransUnion, and Fiona plainly says they will not hit my credit report and cause my credit score to go down. Here are some common distinctions between a hard and a soft hit on your credit report. Common hard inquiries Mortgage applications Auto loan applications Credit card applications Student loan applications Personal loan applications Apartment rental applications Common soft inquiries Checking your credit score on Credit Karma "Prequalified" credit card offers "Prequalified" insurance quotes "Prequalified" personal loan applications Employment verification (i.e., background check) Within seconds of finishing the application Fiona loans exchange, I received two emails stating that my application was incomplete because my credit information from TransUnion was locked. These two companies don't need to conduct a hard inquiry into my credit report. Fiona loan exchange plainly states on its website that there will be no hit or hard inquiries on my credit report. But clearly, if I had not locked my credit report, Avant and Lending USA would have had hard inquiries on my credit report, causing my credit rating to drop. I would have to call TransUnion and explain to them, yeah, one of their partners made a hard inquiry on my report unbeknownst to me. I don't see that TransUnion would have any reason for taking the hard inquiries off my report since it's my word against these two loan companies. Keep in mind that there are other types of credit checks that could show up either as a hard or soft inquiry. For example, your cable provider, Internet provider, utilities, and last but not least, your cell phone provider. More than likely, they will often check your credit report. If you are unsure how a particular inquiry will be classified, ask the company, credit card insurer, or financial institution involved to check whether it will be a hard or soft credit inquiry. It would be best if you remembered that a hard credit inquiry will impact your credit scores and stay on your credit report for about two years, while a soft credit inquiry won't affect your credit score.
Response from FionaDec 14, 2022
Hello Lynn, Thanks for contacting us. We would like to provide some clarification and assistance. Using Fiona to get matched with personalized loan offers has zero impact on your credit score, and Fiona will never submit a “hard inquiry” of your credit score. Fiona may only perform a “soft inquiry” of your credit score upon your use of our service, and you consent to us performing a “soft inquiry” in utilizing our service. A soft inquiry, sometimes known as a soft credit check or soft credit pull, happens when you or someone you authorize checks your credit report. Soft inquiries don't impact your credit scores because they aren't attached to a specific application for credit. You can learn a bit more about our Terms of Service by visiting: https://fiona.com/terms. If you applied for one of the personalized loan offers with a lender and filled out their application on their site, the lender may have performed a “hard inquiry” on your credit score at that time, which does impact your credit score. This is a required step in securing a loan from a lender. If you have any additional questions, please contact our Customer Service Department. We can be reached at [email protected] or (800) 614-7505. Thank you, Gary