Instant Online Decisions

CreditWhereItsDue

Apologies if this has been asked before. From my understanding, instant online decisions are made using relatively complex algorithms on the credit companies servers based on the data you input in your application. These I believe do not access your credit file and so do not make a search, correct? Is a credit search only made when your application has been approved and the credit company needs to establish the APR for your card, based on this information in addition to your application data?

If that is the case, is there no harm caused to ones credit score if they continue to make applications to cards that have instant online decisions if they have been rejected from others?

The_Boss

I tested this twice and they do record a search for the 'instant online decisions'. I checked my Experian file online straight after and they were recorded.

The credit search is used as part of the decision whether to grant you a card and part of how they decide your credit limit.

CreditWhereItsDue

Oh really, I checked my file after having done this yesterday and still no search has shown up, hmmm. Seeing as some of these decisions are made in under 10 seconds I found it hard to believe that a credit search is done within that space of time, a score calculated and also information you've entered in your application reviewed.

YorkshireBoy

CreditWhereItsDue wrote: »

Oh really, I checked my file after having done this yesterday and still no search has shown up, hmmm.

With all 3 credit reference agencies?

Seeing as some of these decisions are made in under 10 seconds I found it hard to believe that a credit search is done within that space of time, a score calculated and also information you've entered in your application reviewed.

The first two are entirely possible (computers have come a long way since Charles Babbage's 1840's analytical engine ), and in many cases a manual review isn't necessary if you've passed the automatic scoring.

Zebedee69

Credit checks can be done automatically in 10 seconds lol!

leannie_2

I just applied for a card expecting to get an instant decision, and I was told a decision couldn't be made and a decision would be mailed to me in the post.
I checked Experian straight away and it has been recorded on their system (twice in fact!).

Zebedee69

Hi Leannie,

Thats because of two things........

a: Your credit file is not strong enough to allow an instant decision and they will manually review it.


b: Cant find your details or something is wrong etc etc

Either way you will get a letter asking for more info or declining you..... Or they might say Yay...!!!