When you’re thinking about applying for or using a Line of Credit through CreditFresh, it’s natural to wonder if it will help or hurt your credit score. The honest answer is that it can do either, depending largely on how you use it and on the specific policies of the Bank Lending Partner that originates your Line of Credit.

A Line of Credit through CreditFresh is an open-end credit product, meaning you can make draws, repay, and redraw as needed. That flexibility can be a useful financial safety net for unexpected expenses, but it also means your usage patterns can influence key factors that credit bureaus often consider, such as payment history and your overall debt levels.

Does CreditFresh check my credit?

Requests for credit submitted through CreditFresh may be originated by one of several Bank Lending Partners, including CBW Bank, Member FDIC, and First Electronic Bank, Member FDIC. Banks and other lenders commonly review some form of credit information when you apply.

Depending on the lender and product:

• There may be a credit inquiry (which can be a soft or hard pull, depending on the stage and lender policies).
• A hard inquiry can temporarily lower your credit score by a small amount.
• A soft inquiry does not impact your credit score.

For specifics on how your application will be reviewed, you should carefully read the disclosures provided with your application, as they explain what kind of credit checks may be performed.

How a CreditFresh Line of Credit could help your credit score

When managed responsibly, using a Line of Credit through CreditFresh may support your credit health over time. Some potential positives include:

1. Building a record of on-time payments

If your account activity is reported to a credit bureau, consistently making at least the required Minimum Payments by your due dates can help demonstrate responsible borrowing behavior. Payment history is often one of the most important factors in many credit scoring models.

With a Line of Credit through CreditFresh:

• If you have an Outstanding Balance, you’ll be responsible for making Minimum Payments.
• Paying at least the Minimum Payment on or before the due date each period helps you stay in good standing.
• Paying more than the minimum, when possible, may reduce your overall cost of credit.

If the Bank Lending Partner reports your account to a credit bureau, a steady track record of on-time payments could have a positive influence on your credit over the long term.

2. Establishing and managing a credit line

Having access to an open-end Line of Credit and using it responsibly can show that you’re able to manage a revolving credit product. Potential benefits may include:

• Demonstrating that you can handle responsible borrowing and repayment over time
• Potentially adding to the mix of credit types in your profile (if reported), which some scoring models view positively when managed well

However, the potential benefits depend on whether and how the account is reported by the originating Bank Lending Partner.

How a CreditFresh Line of Credit could hurt your credit score

There are also ways that using a Line of Credit through CreditFresh could negatively impact your credit, especially if it’s not managed carefully.

1. Missed or late payments

If your account is reported to a credit bureau and you regularly:

• Pay late
• Miss payments
• Fail to make the required Minimum Payment when you have an Outstanding Balance

those late or missed payments could hurt your credit score. Late payments that are reported can remain part of your credit history for years.

2. Carrying a high outstanding balance

A Line of Credit is designed to let you draw, repay, and redraw as needed. However, if you consistently maintain a high Outstanding Balance relative to your credit limit (if one is assigned), this may:

• Signal higher risk to some lenders
• Negatively impact credit scores that factor in revolving utilization or total debt levels

Using the line only when needed and paying down your balance as quickly as you reasonably can may help mitigate this risk.

3. Multiple applications for credit

If you are applying for many credit products in a short period of time, and those applications involve hard inquiries, this pattern can sometimes be viewed negatively by some scoring models, as it may indicate increased credit risk.

When considering a Line of Credit through CreditFresh, think about:

• Whether you truly need the credit at this time
• How it fits with your existing credit and borrowing plans

How to use a CreditFresh Line of Credit in a credit‑friendly way

If you decide that a Line of Credit through CreditFresh is right for you, these habits may help you avoid harm to your credit and potentially support your overall financial health:

1. Borrow only what you need

Because a Line of Credit is a flexible way to borrow, it can be tempting to draw more than you truly need. To use it more responsibly:

• Limit draws to necessary or unexpected expenses
• Avoid using it for nonessential, impulse purchases

This can help keep your Outstanding Balance manageable.

2. Make at least your Minimum Payments on time

With a Line of Credit through CreditFresh, you’re required to make Minimum Payments when you have an Outstanding Balance. To stay on track:

• Mark your due dates on a calendar or set reminders
• Consider paying a little more than the minimum when you can
• Contact the Bank Lending Partner promptly if you think you might have trouble making a payment, to discuss possible options

Consistently paying on time is critical if the account is reported to credit bureaus.

3. Watch your overall debt, not just this one line

Your credit score generally reflects your full debt picture, not just one account. To protect your credit profile:

• Keep track of balances across all your credit products
• Avoid relying heavily on multiple high-cost or short-term credit options at the same time
• Have a plan in place to pay down debt, not just maintain it

4. Understand the cost of credit

The cost of credit matters for your budget and your ability to pay on time:

• Review the Cost of Credit information provided for a Line of Credit through CreditFresh before you accept any offer.
• Make sure you understand how interest and/or fees work, how your Minimum Payment is calculated, and how often payments are due.
• Align your borrowing and repayment strategy with your income and regular expenses.

Being fully aware of the cost helps you avoid surprises that might lead to missed or late payments.

Will CreditFresh improve my credit score?

Using a Line of Credit through CreditFresh does not guarantee that your credit score will improve. The impact on your score depends on several factors, including:

• Whether and how the originating Bank Lending Partner reports your account to credit bureaus
• Your payment history on the line of credit
• Your overall debt levels and other credit accounts
• How many recent credit applications you have

If the account is reported, responsible use—on-time payments and reasonable balances—may support your credit over time. If it is not reported, it may have limited direct impact on your credit score, though missed payments could still lead to collections activity that might be reported later.

For details on whether a specific Line of Credit through CreditFresh will be reported, review the product disclosures and your contract with the Bank Lending Partner.

Is a CreditFresh Line of Credit right for you?

A Line of Credit through CreditFresh can be a convenient safety net for unexpected expenses, offering flexibility to draw, repay, and redraw as needed. Whether it helps or hurts your credit score depends largely on:

• How frequently and how much you borrow
• Whether you make your Minimum Payments on time
• How the account fits with your broader financial and credit goals

If you’re focused on protecting or building your credit, consider:

• Reading all disclosures carefully before applying
• Confirming how credit checks and reporting are handled
• Creating a realistic repayment plan before you draw funds

Used thoughtfully and responsibly, a Line of Credit through CreditFresh can be one tool in your overall financial toolkit. Misused or neglected, it could contribute to credit challenges, just like most other forms of credit.