How far back do lenders check on your records?

BossKy

I am assuming there isnt an actual answer to this as every lender is different, and of course depends on what exactly you are applying for.

I am referring particularly to car finance - I myself have 2 defaults, both settled, which I know and understand remain on your report for 6 years.

My question is how far back do car finance lenders check on your records for good money management? I know that they will see the defaults, but I also know some people are able to get approved for car finance as it tends to be easier to obtain than a personal loan understandably. How far back do these lenders want to see your green O's go? 6-12 months? A year? any thoughts will be helpful, especially from someone who may have been accepted for a vehicle on finance with one or more defaults.

thanks.

DCFC79

Each 1 might be different, maybe you will find 1 won't worry about the defaults and another will.

How old are your 2 defaults ? They might not cause concern if they are old.

sourcrates

Every company has different criteria, my old bank for instance only looked at your last 6 months credit history for a loan application.

Others may be different, if you ask them, they will usually tell you.

HeCh

An unhelpful but honest answer, as others have indicated, is that they will look back as far as they deem necessary and their record retention policy allows. Best bet is always ask for a soft/quotation search when available in the first instance.

GazNicki

As the finance is secured against the vehicle, it is often easier to get the credit than an unsecured loan in some cases.

The creditor will look at affordability, risk, and your history. They can go back 6 years if they wanted to and would probably go back further on someone who has a limited credit report. If you have a more active report, they may look at the past 3-6 months.

However, each lender really is different, and some are reported on here to check their internal records for people who have defaulted in the past. There is no evidence of this either way, but some people do report it.

The best thing to so, as HeCh as suggested, is to perform a soft search on a personal loan for the sum you are looking at, or see if the finance company can do a soft search instead.

BossKy

Unfortunately for me one of defaults are very recent being just over 12 months ago, and only settling last month. (£200 for EE)

And the other being 4 years ago (and settles January of this year (£700 Vodafone)

My credit still sits in the fair category on equifax (in the very poor section on the other sites though scarily).

So the hope of them not having a major impact is very slim if not minute.

BossKy

Does someone/anyone care to elaborate more on what a soft search is? I think i can guess what it is but it will be helpful if you explained. Should there be anything in particular I need to ensure they are/aren't doing to effect my report?

Also, is this something is ask the dealer to carry out or should I go direct to an actual lender?

Any suggestions or can anyone point in a helpful direction?

Thank u

[Deleted User]

It means that the search doesn't appear on your files.

sultanabran

Deleted_User wrote: »

It means that the search doesn't appear on your files.

to other lenders when they do a search of your file.

worried_jim

This car finance is going to be expensive due to the credit risk.

BossKy

I can imagine it'll cost me through the roof, but needs a must in my case unfortunately.

So with regards to the soft search do i ask a dealer to do this or should I approach lenders directly? Such as black horse/zuto/ money barn etc?

Also with a soft search do they still give me a definite yes or no answer or is it more of a guesstimate on their part?