 TITLE: Will Getting a Microloan Hurt My Credit Score? CONTENT: How Microloans Impact Credit\n----------------------------\nAlthough microloans are business loans, your personal credit score may affect your ability to get one. That's because a relatively new or very small business, especially a sole proprietorship, may have little or no business credit history. Without a business credit history to go on, lenders will consider your personal credit history when reviewing your microloan application.\nAs with any type of loan, defaulting on a microloan will negatively affect your credit score. Because many microlenders require a personal guarantee, defaulting can hurt your personal credit score as well as your business credit score.\nA microloan application will also trigger a hard inquiry on your credit report, which can cause a temporary dip in your credit score. To minimize any negative effects, concentrate on applying for microloans you're well-qualified for. If you're applying to several lenders to get the best terms, be sure to complete all your applications within a few weeks. Credit bureaus generally treat applications made within that time frame as a single hard inquiry. END