Will Safestone Financial Hurt Your Credit? Find Out Here!

Managing debt can be overwhelming, especially if you’re struggling with multiple high-interest debts. Safestone Financial offers debt consolidation services to help individuals simplify their debt payments and manage their finances better. However, you might be wondering if using Safestone Financial services will hurt your credit score. In this article, we’ll explore how Safestone Financial works, the pros and cons of using their services, and whether they can hurt your credit.

How Does Safestone Financial Work?

Safestone Financial is a lead-generating company that matches individuals seeking debt consolidation with potential lenders who offer debt consolidation loans. The company does not directly lend money. Instead, they connect their customers with traditional lenders that offer debt consolidation loans.

If you choose to use Safestone Financial’s debt consolidation services, you’ll need to complete an online application to help match you with potential lenders. Safestone Financial does not perform a hard credit check during the pre-qualification process. Instead, they perform a soft credit check that does not impact your credit score.

If you’re pre-qualified, you’ll then receive a loan offer from a lender. You can then review the offer and choose to accept or decline it. If you accept the offer, you’ll begin making payments on the new loan to the lender Safestone Financial connected you with.

Pros and Cons of Using Safestone Financial

Before choosing to work with Safestone Financial, it’s important to consider the advantages and disadvantages of their debt consolidation services.

Pros:

• Increased Access to Lenders: By using Safestone Financial’s debt consolidation services, you’ll gain access to a pool of lenders, making it easier to identify the best debt consolidation loan deals available.
• Soft Credit Check: Safestone Financial uses a soft credit check to determine if you prequalify for a loan. This type of credit check does not impact your credit score, making it a low-risk option for pre-qualification.

Cons:

• Limited Financial Assistance: Safestone Financial does not offer any financial planning or budgeting assistance, which may limit its usefulness for individuals looking for a comprehensive financial management solution.
• Limited Control Over Loan Terms: The loan terms and rates are determined by the lender you choose to work with and not under your control. You may have limited negotiating power to secure better loan terms.

Minimum Credit Score Requirements for Safestone Financial

As per Safestone Financial’s requirements, the minimum credit score a person needs to have is 620 if they want a debt consolidation loan. However, this isn’t the only requirement. Safestone Financial will also check your total existing debt and your employment history to see if you are eligible or not. A FICO score of 620 does increase your chances of getting a loan, but there is never a guarantee.

Before applying to Safestone Financial for a debt consolidation loan, be sure to go through your credit history. Naturally, if your FICO score is high, your approval chances will also increase. A high score also gives you lower interest rates.

Safestone Financial BBB Reviews

Unfortunately, the Better Business Bureau has not accredited Safestone Financial as the company doesn’t have an account on its website. For a financial company, this is a huge red flag. Reviews of Safestone Financial are also unavailable on Trustpilot.

This lack of customer reviews doesn’t sit well with anyone and raises questions about the company’s legitimacy. This is why we want you to be very careful before making any final decisions.

Will Safestone Financial Hurt Your Credit?

Safestone Financial does not perform a hard credit check during the pre-qualification process and does not report to credit bureaus themselves. Therefore, the act of using their debt consolidation services should not impact your credit score.

However, if you decide to accept a loan from one of the lenders Safestone Financial connects you with and are unable to make your payments on time or default on the loan, this could negatively affect your credit score. Lenders usually report payment activity to credit bureaus, which means that late or missed payments may show up on your credit report.

Final Thoughts

Safestone Financial offers debt consolidation services, but they do not lend the money themselves. Rather, they match individuals with potential lenders who offer debt consolidation loans. While using Safestone Financial’s services should not hurt your credit score, it is important to carefully consider the pros and cons of debt consolidation and evaluate whether it is the right solution for your financial needs.