A
vast number of you are requesting information as to your credit
reference record and in particular, what effect are lender searches
having on your record in response to applying on-line for personal
loans and mortgages.
Beyond doubt, on-line loan/mortgage applications are logged on your
credit record with every enquiry. The credit report agencies say
that application information is a way of monitoring fraud say,
someone applies for 10 loans in one week and you are the tenth loan
provider, are you going to pass this person for a loan? Probably
not!
In
some cases reported to me the application is only "out of interest"
with no real intent to actually take the loan. In such circumstances
you will still have this application on your record should the
search only be logged if finance is provided? I think so. For the
record all enquiries are held for 1 year on your credit file. There
are two types of searches
1. General Enquiry
on Debt Management and
Bankruptcy
Our advisors will be happy to
give you free debt advice about how you can manage your
debts
This type of enquiry produces a report on
your voters role details, county court judgments (CCJs),
but not credit information. This type of enquiry is used
by everyone who does NOT fit the profile of a Credit
Enquiry (below).
2. Credit Enquiry
Credit enquiries are ONLY available to
companies that provide two-way information being, a
company that offers credit to its customers, and then
provides the credit reference agency with the finance
details, and any payment defaults or further finance
provided. This creates a self perpetuating database of
credit that cannot be accessed by any company that does
not share two-way information.
The nasty taste of the two-way arrangement is that the
credit companies, banks, finance houses etc. refuse to
allow access to this database which means that, say, a
small business wants to search on a customer for a big
deal, they will not get more than the voters role and
CCJs to help them assess a credit risk little wonder
some appalling credit deals are sinking businesses every
day. Ask your bank manager the next time you meet why
their bank insists on withholding prime information yes,
cartels are alive and well in our own back yard!
