If you apply, get accepted but then don't take out card - credit rating affected?

humfer

In the process of taking out a new card, but so much depends on the eventual credit limit that I get offered that if I was to apply and get accepted, but then find out that the eventual credit limit was less than I wanted, I would probably no bother going further and just bin the contract they get you to sign. One question though - does this show anywhere on your credit rating and is it a bad thing for future card applications?

---lee---

Yes. If you apply for credit, a credit search will be done. The credit search does not show the result of the lenders decision but too many credit searches in a short space of time can make you appear desperate to obtain money. A high number of searches can even look like fraud. A decent guideline seems to be to do no more than 2 or 3 every 3 months as a maximum.

I have defiantly been refused in the past by making to many applications in a short space of time, so it’s one to watch out for.

When looking for loans, you can ask for a quotation which although it still generates a credit search, this search is ‘invisible’ to other lenders so does not damage your credit rating. I don’t think you can do this with credit cards though.

If a credit limit comes back as less that you wanted, you might as well still take the card as you’ve already had a search. You can then call them and say you were disappointed with the limit and ask if they can increase it. I did this recently with the post office and was told immediately that I could have another 2K+. Would never have thought of trying that one if I had not read it on the forums!

---lee---

PS. For more info on credit ratings, see Martin's article. Also, this one from stoozing.com and also some pdf downloads and FAQ from the Experian site.

It's worth noting that you can sign-up for your credit reports from both of the major CRA's Experian and Equifax on a 30-day free trial. As long as you remember to cancel the trials within the 30 days, it will cost you nothing and you can see the credit searches. CallCredit is not used by many lenders, but it's interesting in that the information it holds tends to be more detailed than either Experian or Equifax.

Experian_company_representative

---lee--- wrote:

Yes. If you apply for credit, a credit search will be done. The credit search does not show the result of the lenders decision but too many credit searches in a short space of time can make you appear desperate to obtain money. A high number of searches can even look like fraud. A decent guideline seems to be to do no more than 2 or 3 every 3 months as a maximum.

I have defiantly been refused in the past by making to many applications in a short space of time, so it’s one to watch out for.

When looking for loans, you can ask for a quotation which although it still generates a credit search, this search is ‘invisible’ to other lenders so does not damage your credit rating. I don’t think you can do this with credit cards though.

If a credit limit comes back as less that you wanted, you might as well still take the card as you’ve already had a search. You can then call them and say you were disappointed with the limit and ask if they can increase it. I did this recently with the post office and was told immediately that I could have another 2K+. Would never have thought of trying that one if I had not read it on the forums!

A better Experian link is https://www.experian.co.uk/learningzone

James

Money-Saving-Monk

When I was getting my first mortgage I got burned on my credit rating!

Few years ago now but I had just applied for a new credit card then an IFA ran a check for a mortgage with Northern Rock. In the end I didnt want to use that IFA! I didnt know it had done a credit check.

I switched to a new IFA and in the end he couldnt run any checks because it would damage my credit rating and wouldnt get a mortgage! I had to go with Northern Rock because of the first check ran by the first IFA.

It was a nightmare.

Be careful and as the guys say its definitely worth looking at your credit report with Experian etc. They generally have trials but the tool is useful to make sure no identity fraud is going on for you!

Lee nice posting for stoozing.com. Ive not seen that site before and the information is pretty good Thanks