Finally we are not the only ones addressing the credit application trap!
The Lending Wizard welcomes the announcement of a Treasury Select Committee inquiry into how the credit industry records and views credit searches when considering applications for credit.
Most lenders leave what is known as a ‘hard footprint’ on a customer’s credit profile when considering an application. This type of footprint is visible to any other credit provider. Lenders will then use this information when making their own credit decisions and may decline customers who are deemed to have had too many searches.
As a result, someone who has always paid their bills on time and has never missed a payment might not be offered the best rate or worse still, may be declined for credit and all because they simply shopped around for the best deal.
Whilst Treating Customers Fairly is rightly high on the agenda at the FSA, this practise by some lenders does anything but!
At The Lending Wizard, we have worked closely with our lenders to offer consumers a decision in principle for all the loans on its panel and from a single application form. This means customers can find the best loan for their circumstances and know the actual APR before they apply. Only when they apply to their chosen lender will they then have a credit footprint left on their file.
