Do loan companies know?

willyboy104

I am wondering, if I request a loan does the loan company know whether or not I currently have a loan or is it based on what I tell them?

I want to pay off my current loan with the new loan at a lower APR but if I tell them I think they will charge me more.

Any help would be massively appreciated!

imoneyop

They will do a credit search, which will show all of your existing credit.

If you fail to tell them that you have existing credit (i.e. lie on the application) - then that could be construed as fraud and you could end up with a fraud marker on your credit file, which will make getting any form of credit extremely difficult for years to come.

Brains64

willyboy104 wrote: »

I am wondering, if I request a loan does the loan company know whether or not I currently have a loan or is it based on what I tell them?

I want to pay off my current loan with the new loan at a lower APR but if I tell them I think they will charge me more.

Any help would be massively appreciated!

It will come up on a credit search sure but it does vary from loan company to loan company as to whether or not it will be something they will look at, some are more thorough than others, the criteria they look for will vary from company to company too, eg, some might see you having another lone as a reason to not lend further, especially if you didn't tell them you had another one but even if you did some might still use it against you anyway, others won't be bothered, so to be honest, the answer really depends on the loan company you're requesting one from, I've been turned down by some for that very same reason, namely having too many other loans, yet I've got loans from other lenders who see the same credit information as the ones that turned me down but despite that they still gave me the loan.