Personal Finance News
Experian Expands “No Ding Decline” Program to Personal Loans
One of the big three credit bureaus is giving consumers a way to shop for loans without the threat of a decline impacting their credit score.
About Experian No Ding Decline for Personal Loans:
This week, Experian announced that it was rolling out its No Ding Decline promise to personal loan products. Now, customers can get matched with loans and browse offers that fit their needs. Then, when it’s time to apply, those who are initially declined won’t incur a “hard pull” on their credit and, thus, will avoid any impact to their credit scores. However, those who are approved will need to perform a hard pull. Moreover, Experian warns that some consumers who may receive initial approval based on a soft pull may not pass final verifications after a hard pull has been performed.
These personal loan offers mark an expansion of the No Ding Decline marketplace, which launched with credit card products in December 2024. Experian says that these marketplaces are the only ones where customers can browse and apply for financial products without worry of harming their FICO scores with a declined application.
The rollout of the new marketplace comes as personal loan usage is on the rise. According to data from Experian, usage of such loans increased 16% last year. Currently, 38% of consumers in the United States have at least one personal loan on their credit report.
What They’re Saying:
Announcing this update, Experian Marketplace at Experian Consumer Services EVP Rakesh Patel stated, “Personal loans can be a valuable tool for financial flexibility, and No Ding Decline lets consumers shop with confidence. This latest expansion reflects Experian’s commitment to continually innovating and meeting consumers where they are so we can be a true financial copilot throughout their lives.”
My Thoughts:
As a reminder, new credit inquiries are only one small factor that goes into determining your overall credit score. Specifically, “new credit” accounts for 10% of your score while payment history and credit utilization make up 35% and 30%, respectively. Moreover, while hard pulls may stay on your report for two years, they only impact your scores for one year. In other words, while it’s nice to avoid a “ding” to your credit, keep in mind that there are far more important factors when it comes to your credit.
With that said, I continue to think that this is a smart move for Experian and is, honestly, good branding. Even if a hard inquiry may not be the end of the world for your credit, I can definitely understand it being a concern for those seeking financial products. Of course, I also feel bad for the people who are initially approved but are declined after a hard pull is done. Here’s hoping that’s a very small percentage of applicants and that the rest easily fall on either side of the line.
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