Help re Moneysupermarket credit search!

adtheblue

Having tried and failed to get a loan comparison page on Moneysupermaket, a friend has just told me that everytime I applied for a laon and I tried Alliance & Leciester,Sainsburys Bank and then Abbey, that I will have been credit searched.

But worse still, he also reckons that this will have damaged my credit rating :mad: and that this is why they have declined me.

I feel really angry that Moneysupermarket dont warn you about you this. Does anyone know if this is true or how I can put it right?

I'm now really worried that I would be able to get a loan anywhere!!

kaisersoze_2

It is true i am afraid, everytime you apply for any kind of credit facility a search is carried out with a credit reference agency (experian or equifax) who record the search on your credit file, this can be seen by other lenders.

If you make a massive amount of searches in a short space of time it can damage your credit rating and makes you appear desperate to other possible lenders.

Over what period of time did you make the applications?

adtheblue

I make the three applications over 2 days but surely the fact that they were all made through moneysupermarket it should only count as one search.

gomer

It doesn't work like that. They were all to seperate companies who all do thier own search. In all fairness it's not really up to moneysupermarket.com to warn you.

kaisersoze_2

Moneysupermarket are simply a comparison website that are supposed to match you with the best lender depending on your circumstances.

You still have to apply for the loan on the lenders own website so each lender will have made a seperate search.

Im sorry to say but 3 applications in 2 days will not look good on your credit file, you should probably leave it for a few months till you try again.

adtheblue

In the current financial climate, I believe any reputable loan comparison website should warn you. I trusted moneysupermarket because I assumed they were the best and would give best advice.

There must be a regulator they answer to.

Does anyone know if there is someone I can complain to?

kaisersoze_2

They are regulated by the FSA but i dont think you have much to complain about. You dont apply for the loan on the moneysupermarket website (just a comparison site) you have to click through to the lenders website were you have to agree to a search been made by a credit reference agency.

Just put it down to experience.

Rafter

adtheblue,

Moneysupermarket.com are a profit making company who earn commission every time you take out a product through their site.

They assume that most people would select the best product and then apply - not apply for 3 different loans!

I don't think it is up to them to warn you that you are about do do something ilogical!

Why did you apply to all 3? Were you declined? Do you know why? Are you on the electoral roll? Do you have a good job? Have you already got a fair bit of debt compared to you income? Have you always kept up to date with payments?

Your best option now would seem to be to do a face to face application with your own bank.

Complaining will get you nowhere. Price comparison sites aren't specifically regulated although they are covered by general fair trading rules. As they haven't treated you unfairly I can't see you getting anywhere though.

R.

mercat

The main problem is that price comparison sites like moneysupermarket can only give "typical" rates. Typical rates means that only 2/3 of successful applicants will get the rate. In fact, many applicants are declined just like you were -- and in reality, the chances of getting the "typical" rate are closer to 1 in 4, sometimes less. Moneysupermarket doesn't tell you that because it can't give a "true" rate comparison. The only way to get a "true" rate to my knowledge is to apply with the lender. That means potentially damaging your credit rating if you do it too many times...

gomer

adtheblue wrote: »

In the current financial climate, I believe any reputable loan comparison website should warn you. I trusted moneysupermarket because I assumed they were the best and would give best advice.

There must be a regulator they answer to.

Does anyone know if there is someone I can complain to?

Sorry but i think you're being a bit naive about this.

The current financial climate has no baring whatsoever on whether or not individuals understand how credit searches are carried out & complaining will get you absolutely nowhere because like i said before, it's not up to moneysupermarket.com to explain to you how it works and it is a bit futile, not to mention pointless to blame them for something that is not thier responsibility to educate people about.

Just put it down to experience & accept you made a mistake you now know not to make again. Moneysupermarket.com did not make you submit several applications at the same time.

mercat

The only complain you can make is ask them to improve their comparison so you don't think you will get what they show.