{"id":2087,"date":"2023-06-30T14:45:46","date_gmt":"2023-06-30T14:45:46","guid":{"rendered":"https:\/\/www.mcashadvance.com\/?page_id=2087"},"modified":"2025-05-23T10:48:55","modified_gmt":"2025-05-23T14:48:55","slug":"mca-credit-reporting","status":"publish","type":"page","link":"https:\/\/www.mcashadvance.com\/resources\/mca-credit-reporting\/","title":{"rendered":"MCA Credit Reporting and Credit Checks: the Process, Impact, and Consequences"},"content":{"rendered":"
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By Richard Wilson<\/a><\/p>\n\n\n

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Last Updated on<\/p>\n\n<\/div><\/div>\n\n

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<\/i> Estimated read time: 7 minutes<\/p>\n\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n

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We often get questions about how credit checks work and whether MCA activity affects your credit score. If you\u2019re thinking about applying for funding, it\u2019s important to understand how credit pulls, credit reporting, and default consequences can shape your financial future. We\u2019ll walk you through how it works, what to expect, and how to protect yourself.<\/p>\n\n\n

What Type of Credit Check We Use<\/h2>\n\n\n

When you apply for a merchant cash advance, we usually check your credit. Some providers use a soft pull<\/strong>, others run a hard inquiry<\/strong>. The difference matters. A hard pull can temporarily lower your credit score and shows up on your credit report. A soft pull does neither.<\/p>\n\n\n\n

We typically perform a soft credit check<\/strong> when reviewing applications, unless your file requires deeper evaluation. This lets us assess your credit without impacting your score. If we ever need to escalate to a hard inquiry, we\u2019ll always ask for your permission first.<\/p>\n\n\n

What Shows Up on a Soft Pull<\/h3>\n\n\n

A soft pull still gives us a snapshot of your credit profile. It shows your score, any public records, judgments, or defaults, and your active credit lines. But it doesn\u2019t notify other lenders, and it won\u2019t affect your score.<\/p>\n\n\n

When a Hard Inquiry Is Used<\/h3>\n\n\n

A hard inquiry gives deeper insight and appears on your report. Multiple hard pulls in a short time can lower your score and make you look riskier to other lenders. Some MCA providers use hard pulls during underwriting, especially if a large advance is requested or a personal guarantee is involved.<\/p>\n\n\n

Which Bureaus Are Checked<\/h2>\n\n\n

We typically pull credit from Experian<\/strong> or Equifax<\/strong> when reviewing personal credit. Some providers may also check business credit<\/strong> through agencies like Dun & Bradstreet<\/strong>. Each provider is different, so always ask upfront which bureaus will be accessed.<\/p>\n\n\n

MCA Credit Reporting Practices<\/h2>\n\n\n

MCAs are not loans. They are classified as purchases of future receivables, which means most providers do not report<\/strong> your repayment history to personal or business credit bureaus.<\/p>\n\n\n

What This Means for Your Score<\/h3>\n\n\n