Beware of hidden credit searches
Every time you apply for a mortgage, a loan, a credit card or you want to buy anything on finance, you will be credit searched. That credit search leaves a ‘footprint’ at the Credit Reference Agency which indicates what type of credit you applied for and when.
When you apply for credit, most lenders will look at the number of recent credit footprints as part of their decisioning process. Too many in a short space of time will make lenders wary and could increase your chances of being declined. For a lender, those searches could mean that a number of lenders have already turned you down or that you have recently taken out a lot of credit which could result in you being overstretched.
The reality is that the lenders will not know the exact reasons why, but in today’s world they are more cautious than ever and so to avoid the risk of more bad debt (people who can’t repay their loans) the lender may just decline the application.
There are some excellent insurance aggregator sites on the internet which, if you fill in one application form, will tell you the insurance premiums from each the insurance companies so you can then pick the best product for you.
However, some of these same websites also offer loans but unlike insurance you have to fill in an application form for each lender. For every loan application you complete you will be credit searched. If your first application is not accepted, then you run the risk of generating several credit searches and that’s where your problems could begin.
Remember, The Lending Wizard is different, it only does a soft credit search to obtain quotes from all of the lenders on its panel so you can protect your credit profile – simples!
