Loan Credit Check

XXJULESXX

Hi

I was wondering if anyone could clarify something for me.

I am trying to secure credit for a car.

I have a bank of scotland credit card with a limit of £2000, which I was basically just given to me by BOS without a credit check 2 years ago. I use it maybe once or twice a year to pay for holidays and then pay it off straight away that month.

As I'm on Maternity leave I didn't think I'd stand much of a chance of getting a loan so thought I'd try and increase my credit limit on this card instead. My partner lives with me but he was turned down for a loan last month due to his poor credit rating.

When I called to request this increase - by £3000 - I was told it was not authorised probably because of how infrequent I use the card.
Would this have been a credit check done at this point?

The advisor suggested I apply for another CC or a loan, so I agreed to be quoted on the loan. I was informed next that my rate would be 29%!!! and she would contact the underwriters etc. Then she came back to me and said that their office was closed and she would call me back on Monday to do this.

At this point I asked if I could just forget it and cancel it and she said no, it had been credit checked already. Nobody contacted me on the Monday so on Tuesday I called and spoke to someone who contacted the underwriters and then advised me that as a condition of my loan someone else at my address would have to go in on it with me. I decided against doing this and said I'd rather be declined then. The advisor said he would "withdraw my application" and it wouldn't show as a decline.

My question is therefore how will all this affect my credit rating now?
I'm going to wait until I'm back working a couple months before I apply for credit again, but I'm just concerned now that my CC limit increase request together with this loan application might have mucked it up a bit.

My credit history previously has been fine- never miss any payments, never been turned down for anything, only have one 0% credit account for my sofas and a tesco clubcard creditcard with a small limit(£400) that I use solely as a debit card, paying it off atleast once a week.

When I do eventually re-apply for credit would I have a better chance of a loan or another CC?

Thanks, any advice appreciated.

PNPSUKNET

wont effect it that much unless you have like 3 searches within a short period, although could be a myth. Inregards to the credit limit increase you requested, really Im not suprised it was declined as you wanted a 150% increase

Ritchie74

You will not have been credit searched for the limit increase request. As you have an existing relationship with the lender, they reserve the right to view your file at any time (as per your Ts&Cs) they can do this without leaving a footprint.
You may have been searched for the subsequent loan app. I say 'may' as they could have used your existing customer behaviour to make the decision. Given you rarely use your card, however, I would assume they have performed a search.
One search will not have an impact on your credit worthiness at another lender.

You can request a copy of your file (Experian and Equifax being the main crefit bureaus) for £2- make sure you only buy the statutory report.

What is your income? How long have you lived at your current address? Are you on the ER? These are probably the main reason for your decline, that or too little credit history.

XXJULESXX

Thanks for quick response.

Yeah I appreciate that the credit limit increase amount was a bit of a long shot.

I'm in rented accommodation, same address 3years only, I am on ER but I imagine my biggest weakness is my earned income. I'm nearing the end of Mat leave so, applying on my own, it looks a bit pathetic, regardless of our total household income. But I really don't want to link finances with my partner due to his past poor credit rating.

Ritchie74

Looks like your income could be the issue then. Maybe wait until you have a greater source of income?

XXJULESXX

Yeah that seems to be only option.

Relieved that the chances are the CC limit increase won't be shown as a decline on credit file, but, without checking, cautious about what the loan app will appear on my file as. Surely a "withdrawn" if there is such a thing, is pretty questionable.

Ritchie74

A search is just a search. Whether you are accepted/declined or cancelled won't make a difference, all lenders will see is a search footprint.

Seriously though, 1 search is fine. If you had carried out multiple searches in a short time then that would be bad.

If you are going to hold off a little while (couple of months), then even your next search won't impact your score.