Micro-credit has solved the urgent need for many people who need money badly. So, does microfinance have an impact on personal credit reporting? Small loans will affect personal credit information to a certain extent. I suggest that if you have the habit of making regular small loans, you must pay back on time in strict accordance with the repayment time of small loans.

I. Introduction to microfinance

Small loans on formal platforms, such as those launched by licensed institutions, are also funded by banks or other financial institutions. Normal use and timely repayment have little effect on the borrower's credit information. However, if you apply for microfinance many times and use it too frequently, it will still bring some negative effects.

Second, small loans affect personal credit performance.

1. Too many loan approval query records.

When applying for a small loan, it is basically necessary to check the credit information. Some loan products need to be audited every time they are used. The system will query the borrower's credit report regularly or irregularly. There are many inquiries about loan approval and post-loan management, which will have an impact on credit investigation. Too many loan approval records will make the lending institutions think that the credit reporting parties are in poor economic condition and lack of money, but will refuse their loan applications.

2. The debt ratio is too high.

If the use of small loans is reported to the Credit Bureau, the lending institution will find that there are too many outstanding loans, and it will think that the credit reporting party owes too much, which is risky for loans overdue and is unwilling to issue more loans.

If you apply for a small loan many times, you must not overdue the repayment. The number of overdue times has a great influence on your credit information, and your application for bank loans may be rejected directly in the future.

Third, personal credit inquiry channels.

Bring my ID card or client's ID card and power of attorney, and provide my ID card to print personal credit records at the credit inquiry window of the People's Bank of China.

In short, whether multiple small loans will affect credit information depends on the specific number of times. If the small loan is repaid on time, there are not many loans under its name, and the borrower's income is high, so the impact of applying for other loans is generally not great.