Applying for various loans - will this be bad for my credit rating?

ollyinto

Hi,

I am looking for a loan, nowadays the loan companies decide the interest rate they will charge on personal circumstances. I have applied with Santander but am not happy with the rate.... If I try with other lenders will it affect my credit rating and reduce the chance of me getting a loan?

Many Thanks

[Deleted User]

too many applications over a short period of time will,but another one now shouldnt
how much do you want to borrow?and what rate did santander(spanish for stupid btw)quote?

ollyinto

Thanks,

The loan app was 8k over 4 years at 13.9%!

I was thinking that it should only be bad if you keep trying once declined...

Otherwise they dont give you the chance to check rates now many lenders dont tell you until you have applied.

KingElvis

Yes, multiple apps in a short space will kill your rating, fact.

ollyinto

When would be a safe time to try another lender?

industryinsider2

Other lenders won't know whether you've been declined or not. They simply see a 'footprint' of the other lender when they do their own credit checks. If you have footprints without a subsequent credit account, the second lender will assume that the first lender credit checked you and decided not to give you an account. High street banks in particular take the opinion that if you weren't good enough for their competitors then you're not good enough for them.

13.9% isn't too bad a rate in today's Market. I doubt you will get a better rate from a bank or building society you don't bank with.