Getting Credit After Offer/Before Completion?

wrkactjob

We have had our mortgage offer from Skipton, but now considering carpets/furniture for our new build.

Would applying for credit now ie post exchange but pre completion be risky at all?...would it be better to wait post completion?...not sure if Skipton will carry out any more credit checks?

nobodysdriving

I'd like to know too!

I have applied for a Tesco Credit card AGES ago, way before I entertained getting a mortgage...

then all this mortgage stuff came along....

I have just got my offer in principle and am awaiting the valuation date

Now I have received a Tesco credit card!!!

what I don't want to happen is that the tesco credit card appears on my credit report in next 2 to 4 weeks then the mortgage lender re-looks at my file and sees it and it was not declared on application!

my mortgage advisor told me to cancel the card immediately...

amnblog

We say this on this forum time and again. No other credit searches or applications until AFTER completion.

nobodysdriving

amnblog wrote: »

We say this on this forum time and again. No other credit searches or applications until AFTER completion.

thanks, I am new to the mortgage forum

in my case Tesco did not do a search, and I did not apply...the application was done before I even thought of taking out a mortgage, however Tesco 'dragged it out' (maybe they temporarily lost sight of my application?) and I 'forgot' I applied for a card (I don't need it I just want to use it for the clubcard points! LOL)

then just a few days ago I got my letter saying I was welcomed as a tesco card customer and I should be receiving the PIN and card soon.

so now they would not do a search anymore, however my account with them would 'appear' on my file from next month (or less who knows) so that is why I have called them to cancel the application, I do not want their card to appear in my credit agreements before I get my mortgage...

ACG

Im not saying your wrong but why would any company (including tesco) offer you a credit card without credit searching you?

They have to be sure you are not in bankruptcy for instance, aside from the fact they would want to ensure your not going to vanish owing them thousands.

Having worked for RBS credit cards a few years ago who used to manage tesco credit cards (I have no idea if they still do, probably not), they did credit check people using experian. I know this as I did work in new accounts at one point. I find it hard to believe they have stopped credit checking people.

However as above, making ANY applications for credit whether that be a bank account, HP, credit card etc can impact upon your mortgage application. You should wait until after completion before applying.

nobodysdriving

ACG wrote: »

Im not saying your wrong but why would any company (including tesco) offer you a credit card without credit searching you?

They have to be sure you are not in bankruptcy for instance, aside from the fact they would want to ensure your not going to vanish owing them thousands.

Having worked for RBS credit cards a few years ago who used to manage tesco credit cards (I have no idea if they still do, probably not), they did credit check people using experian. I know this as I did work in new accounts at one point. I find it hard to believe they have stopped credit checking people.

However as above, making ANY applications for credit whether that be a bank account, HP, credit card etc can impact upon your mortgage application. You should wait until after completion before applying.

that's because they did a search all the way back in May when they declined me and I saw no reason why so I 'appealed' and then they asked me for bank statements which I sent. Then silence for at least 6 weeks and now this through the door!

so the search by tesco is already on my file, was there when I went to mortgage advisor 2 weeks ago, getting the card now is not putting any new searches but of course the credit agreement will pop up next month if I keep the card showing the balance and any money owed (if any)

ACG

Ahh, fair enough that makes sense. Sounds like they have a similar process.

Worrying (in a funny way) when you get declined for a credit card but accepted for a mortgage isnt it.

nobodysdriving

ACG wrote: »

Ahh, fair enough that makes sense. Sounds like they have a similar process.

Worrying (in a funny way) when you get declined for a credit card but accepted for a mortgage isnt it.

yes I know what you mean, I never knew why Tesco declined me, there was NO reason, especially when I only wanted a £250 limit, but maybe 'that' was the reason: no money to be made from me only wanting a £250 limit??

the search from tesco shows as 'RBS' under 'credit checks' and it says next to in 'opt in'

but I wonder if now the tesco credit card account 'still' appears on my credit file temporarily even though I have called them to cancel the application, if it will cause any issue with the mortgage application with kent reliance.....

I'll worry if and when that bridge will appear.

ACG

Kent reliance do manual checks, they dont credit score. I would be very surprised if they had a problem with it.

What a kents turnaround times like at the minute? A few months ago it was over a week every time we sent something in.

nobodysdriving

ACG wrote: »

Kent reliance do manual checks, they dont credit score. I would be very surprised if they had a problem with it.

What a kents turnaround times like at the minute? A few months ago it was over a week every time we sent something in.

well, kent reliance did look at my credit file as they appear on my equifax file under the searches as 'Onesavings bank'
they did a 'credit quotation' search on my previous address and an 'additional address' check on my current address and the one before my last...this was on monday.

my advisor said he put in the full application yesterday and they told me a decision should be through by close of business day tomorrow....we shall see

I am grateful the tesco credit card account appearing on my file will not cause trouble, then maybe I do not have to cancel my card?
I'd love to boost my clubcard points and besides, they already searched me back in may

ACG

They do check it, they just dont credit score. Its good old manual underwriting where a person makes a decision rather than a computer.

If you want your credit card I would just keep it. The search has been done.