The Sub Prime Credit Thread - Part IV

never-in-doubt

CannyJock wrote: »

Nope. 12 in a single month will annihilate your score.

12 in a year is what I stated. Not a month! :rotfl::rotfl:

never-in-doubt

pjread wrote: »

is that fairly accurate for most lenders then, <12 searches in a year and you're 'safe' from any negative impact from search volumes?

Yes less than 12 per annum would not affect you - although some top cards reduce this to 8 - such as Amex and certain top end cards that stoozers and the like get (low apr and high limits).... Canny is the expert on best deals and probably knows the harder lenders more than I do.... but the norm for a typical mainstream card is 12 searches or less in any 12 month period is ok....

Parki_2

never-in-doubt wrote: »

Yes less than 12 per annum would not affect you - although some top cards reduce this to 8 - such as Amex and certain top end cards that stoozers and the like get (low apr and high limits).... Canny is the expert on best deals and probably knows the harder lenders more than I do.... but the norm for a typical mainstream card is 12 searches or less in any 12 month period is ok....

That is very handy to know. I need to slow down on the applications for a bit though now ;p Doesnt help with the BOS double search!

pjread

Cool I'll stop fretting about my 10 then....

BugsyBrowne

But Don't equifax only go back 6 months....

never-in-doubt

star-fire wrote: »

But Don't equifax only go back 6 months....

Nowt to do with equifax, its to do with the scoring module that lenders use and this is set (in line with agreements in place) that less than 1 search per month should be discounted - the CRA's can only offer data provided on what the lender requests (automated scoring) ergo it is set at 12, typically - unless it is a top end card which I believe can drop to around 8.

I think if you have 10 then you should be fine, maybe some lenders go for referral at 12 - that is up to them at the end of the day, but if you had 10 then you'd be in easy street - generally. Less would obviously be better lol.

BugsyBrowne

Cheers nid....

Zack1

ElkyElky wrote: »

It wouldn't necessarily be down to underwriting if the decision was automatic.

There could be some truth in what she says.. I had a number of searches on my file before applying for my loan, and that was automatically approved.

:j

Yea I understand that, but I mean higher people who work in underwriting (e.g. deciding the scoring models) will be the only people that know that type of information - anything else is basically just guesswork, even if she is a supervisor - as she's not high enough to know otherwise

never-in-doubt wrote: »

The day we start to trust anyone from that bank is the day i'll become prime minister! :rotfl:

:rotfl:

I just got all excited thinking I only had a few searches.... then I remembered all the stuff I was accepted for still counts as a search, so I probably have about 12 (but loads will vanish soon, including Natpest's)

They_Were_Up_In_Arms

Adriaaaaaan!!!!

CannyJock

never-in-doubt wrote: »

12 in a year is what I stated. Not a month! :rotfl::rotfl:

Originally Posted by pjread
is that fairly accurate for most lenders then, <12 searches in a year and you're 'safe' from any negative impact from search volumes?


Just wanted to point out to pjread that it's not just the number of searches, but the frequency and age that counts.

I try and put 3 month gaps between major applications. Underwriters have repeatedly confirmed in fairly detailed discussions with them that searches more than 6 months old aren't taken into consideration - so I'm going on the basis that they're not all talking nonsense because they're being too consistent, and seems to fit with my experiences.

I pushed my luck last year and applied for Santander, MBNA and M&S cards without waiting 3 months over a 6 month period - rejected for all 3, although MBNA will be partly because I already have an unused card with a 15k limit with them. Sat on my hands, applied for Santander Zero after a 3 month gap, got a 13k limit. Anecdotal, but supports the case.

I've also blitzed applications for stoozing purposes where you apply for a series of cards until you hit a wall of rejections (you need at least a 6 months gap before you attempt this) - it turns the heat up on your credit report and you're basically guaranteed to be rejected for anything for the next 6 months and burns bridges with the people you applied to for up to a year, so it has to be carefully considered - basically don't do it unless you're 100% sure you won't need to apply for anything for a 6 month period.

Standard advice to people who are looking for 0% or low APR cards is to make 1 application every 3 months and keep on doing it until you've moved your debts onto a low or 0% APR basis. That would be my rule of thumb if you don't want to have any affect on your credit score More than that and within a 6 month period your searches will start to lose you points.