Changing energy supplier could affect your credit rating

SuzieSue

I've just seen a episode of Rip off Britain which featured someone who regularly changes his energy supplier.

This time he changed to NPower I believe. However, they did 2 hard credit searches on him and that resulted in him being rejected for a credit card a few weeks later.

They said that 3 companies do hard credit searches at the moment, NPower, British Gas and Eon, from what I can remember.

I just thought I'd warn anyone who might be affected.

I have also posted this on the Energy and Credit Card board.

mcpitman

First problem - he dealt with NPower, they are incompetent at best
Second problem - they did 2x searches, refer to comment above.

He must of been borderline "creditworthy" anyway, if these made a difference.

How did he found out, without doubtm that these searches affected him? Or was that a sweeping assumption that was made.

nomoneytoday

How would a search to check your details for an energy switch impact an application for a loan / credit card?

SuzieSue

mcpitman wrote: »

F

He must of been borderline "creditworthy" anyway, if these made a difference.

How did he found out, without doubt that these searches affected him? Or was that a sweeping assumption that was made.

No, he seemed very creditworthy.

That is what RoB said and I wondered how they were so sure too, but they usually get their facts right but could have slipped up this time.

But this point still is that they left a 2 x hard credit checks on his record.

SuzieSue

nomoneytoday wrote: »

How would a search to check your details for an energy switch impact an application for a loan / credit card?

Because some cautious lenders get spooked if you have too many hard checks done within a short spell of time. Perhaps they don't bother to go in to details to see they were just for gas/electricity and just see 2 hard checks and assume you are applying to multiple lenders.

GingerBob_3

SuzieSue wrote: »

Because some cautious lenders get spooked if you have too many hard checks done within a short spell of time. Perhaps they don't bother to go in to details to see they were just for gas/electricity and just see 2 hard checks and assume you are applying to multiple lenders.

Are searches categorised as coming from real lenders as against chancers in the utility sector?

SuzieSue

GingerBob wrote: »

Are searches categorised as coming from real lenders as against chancers in the utility sector?

RoB didn't say, but they should have done. It is a good programme, but sometimes they do leave questions like this unanswered.

And the problem is that it is the cautious lenders who have the best credit card deals so it really matters.

mcpitman

SuzieSue wrote: »

No, he seemed very creditworthy.

And therin lies the problem, he "seems" to be creditworthy. :cool:

Clearly not the case or 2x hard searches would not have affected this person at all.

If his "creditworthiness" is so fragile, then I suggest he complains to NPower (good luck with that, they really are useless and incompetent) and gets one of the searches removed.

SuzieSue

mcpitman wrote: »

SuzieSue wrote: »

No, he seemed very creditworthy.

And therin lies the problem, he "seems" to be creditworthy. :cool:

Clearly not the case or 2x hard searches would not have affected this person at all.

If his "creditworthiness" is so fragile, then I suggest he complains to NPower (good luck with that, they really are useless and incompetent) and gets one of the searches removed.

He tried complaining but they ignored him. They did 2 searches even though he was applying for a dual fuel deal.

SeanG79

2 Hard credit searches by an energy supplier would not result in a decline for a credit card.

credit searches have less impact on credit decisions now compared to a few years ago, as lender are aware many customers are comparing rates before committing.

GingerBob_3

SeanG79 wrote: »

2 Hard credit searches by an energy supplier would not result in a decline for a credit card.

credit searches have less impact on credit decisions now compared to a few years ago, as lender are aware many customers are comparing rates before committing.

They could for borderline cases. Straw that breaks the camel's back and all that.