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How does the Paintbrush Loan affect my credit?
How does the Paintbrush Loan affect my credit?
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Written by Kaela Worthen
Updated over a week ago

Verifying your credit score

Your credit score is not verified when you fill out the short form on the “Get Started” page, so this will not affect your credit score.

However, when you submit your full application, your credit score and history will be verified by pulling a credit report from Experian.

This is a soft credit check, which will show up on your report but will not affect your credit score. Checking your credit is a part of verifying the founder's background, but the loan is made in the business's name. Learn more about how soft credit checks work from Experian.

Even if there are multiple owners of the business on the application, only the credit of the owner designated as the personal guarantor on the loan (the founder who will end up paying back at 15% of their income if the business were to fail) will receive a credit check.

If your credit is frozen

If you've previously frozen your credit to prevent new accounts being opened in your name, that's a great step in making sure your identity is secure except for when you explicitly authorize a check. This is one of those times.

Experian is the agency used to check your credit score. Usually the result is pretty immediate, but it's best to unlock your credit for 2 business days just to make sure everything is processed smoothly.

You do not need to unlock your credit with Equifax or TransUnion.

Reporting back to credit bureaus

As a standard practice, activity on a Paintbrush Loan is not reported to the credit bureaus. That means that aside from the initial credit check after you submit your application, your credit will not be impacted positively or negatively based on loan repayment.

However, if a startup defaults on its loan, a hard credit pull is made on the guarantor/founder of the Paintbrush Loan, after which repayment on the guarantee is reported, and may affect a personal credit score.

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