0% transfer cards, not sure what that means

D3xt3r5L4b

washtenaw said:

onlyfoolsandparking said:

washtenaw said:

Opening up a new card will negatively affect your credit score for a few months but it will definitely recover after this. And even though lenders don't ever actually look at your specific credit score number, they absolutely DO look at the fact that you opened up a new card recently and this can certainly effect whether they decide to offer you credit or not and/or how much credit they offer you and at what rates.

So in your specific situation, if you apply for a 0% transfer card and are successful, or if you are unsuccessful and the lender performed a 'hard' check on your credit file (most lenders just perform a 'soft' check that won't effect your credit score and won't be seen by other lenders), then this means that you are more likely to be turned down for credit and/or offered less credit in the 6 months after your application.

So if you only just want that one 0% transfer card for now, and don't plan on applying for any other form of credit soon like a mortgage/loan/car finance, then there's no need to worry, all new credit accounts for anyone will have a negative effect on their credit scores/eligibility to lenders for up to 6 months, this is just what happens, so definitely don't let this put you off applying for new credit.

And as I mentioned above, even though most lenders only perform a 'soft' check on your credit file when you apply, which means that it won't negatively effect your credit score or be seen by other lenders, some lenders perform a 'hard' check, and this absolutely will negatively effect you if you attempt to apply for another card after this as other lenders definitely DO see this !!! My advice is therefore to apply for a number of 0% cards at the same time which should greatly improve your chances of being accepted for at least one and if you are rejected due to a 'hard' check, then this won't negatively effect your other applications at that time.

Not sure that is true regarding 'full and completed' applications, could be wrong though?

As far as I know, if you make a 'full and completed' application and the lender only performs a 'soft' check and subsequently refuses you, then no, that can not be seen by any other lender. Only you and the credit referencing agencies can see that a 'soft' check was carried out and this information will NOT be shared with other lenders.

Lenders can only see if you have either A ) opened a new account or B ) had a 'hard' check performed on your credit file. So applications themselves are not recorded at all, only the 'hard'/'soft' checks and/or opening of new accounts that may occur as a result.

A "full and completed application" will involve a hard search, not a soft search.

washtenaw

D3xt3r5L4b said:

washtenaw said:

onlyfoolsandparking said:

washtenaw said:

Opening up a new card will negatively affect your credit score for a few months but it will definitely recover after this. And even though lenders don't ever actually look at your specific credit score number, they absolutely DO look at the fact that you opened up a new card recently and this can certainly effect whether they decide to offer you credit or not and/or how much credit they offer you and at what rates.

So in your specific situation, if you apply for a 0% transfer card and are successful, or if you are unsuccessful and the lender performed a 'hard' check on your credit file (most lenders just perform a 'soft' check that won't effect your credit score and won't be seen by other lenders), then this means that you are more likely to be turned down for credit and/or offered less credit in the 6 months after your application.

So if you only just want that one 0% transfer card for now, and don't plan on applying for any other form of credit soon like a mortgage/loan/car finance, then there's no need to worry, all new credit accounts for anyone will have a negative effect on their credit scores/eligibility to lenders for up to 6 months, this is just what happens, so definitely don't let this put you off applying for new credit.

And as I mentioned above, even though most lenders only perform a 'soft' check on your credit file when you apply, which means that it won't negatively effect your credit score or be seen by other lenders, some lenders perform a 'hard' check, and this absolutely will negatively effect you if you attempt to apply for another card after this as other lenders definitely DO see this !!! My advice is therefore to apply for a number of 0% cards at the same time which should greatly improve your chances of being accepted for at least one and if you are rejected due to a 'hard' check, then this won't negatively effect your other applications at that time.

Not sure that is true regarding 'full and completed' applications, could be wrong though?

As far as I know, if you make a 'full and completed' application and the lender only performs a 'soft' check and subsequently refuses you, then no, that can not be seen by any other lender. Only you and the credit referencing agencies can see that a 'soft' check was carried out and this information will NOT be shared with other lenders.

Lenders can only see if you have either A ) opened a new account or B ) had a 'hard' check performed on your credit file. So applications themselves are not recorded at all, only the 'hard'/'soft' checks and/or opening of new accounts that may occur as a result.

A "full and completed application" will involve a hard search, not a soft search.

From my experience, some lenders will offer you credit after only performing a soft search, as this has certainly happened to me with most of my credit applications. Only very rarely has a hard search shown up on my credit file after I have opened up a new credit account.

Also, I have applied twice with one lender and was refused on both occasions. I would absolutely say that I submitted a 'full and completed' application on both attempts yet no hard searches ever appeared on my credit file as a result.

Ultimately it is impossible to know whether a lender will perform a hard or soft search during a credit application. I applied for a 2nd card with one lender and was refused due to the fact that I already had one with them. This showed up on my file as a hard search even though the lender insisted that it was only a soft search. No idea what happened there, but I suspect that sometimes lenders don't even know what kind of searches they are actually carrying out !!!

So in the end, it's always best to just assume that a lender will perform a hard search, even though (in my experience at least) that usually doesn't turn out to be the case.

D3xt3r5L4b

washtenaw said:

D3xt3r5L4b said:

washtenaw said:

onlyfoolsandparking said:

washtenaw said:

Opening up a new card will negatively affect your credit score for a few months but it will definitely recover after this. And even though lenders don't ever actually look at your specific credit score number, they absolutely DO look at the fact that you opened up a new card recently and this can certainly effect whether they decide to offer you credit or not and/or how much credit they offer you and at what rates.

So in your specific situation, if you apply for a 0% transfer card and are successful, or if you are unsuccessful and the lender performed a 'hard' check on your credit file (most lenders just perform a 'soft' check that won't effect your credit score and won't be seen by other lenders), then this means that you are more likely to be turned down for credit and/or offered less credit in the 6 months after your application.

So if you only just want that one 0% transfer card for now, and don't plan on applying for any other form of credit soon like a mortgage/loan/car finance, then there's no need to worry, all new credit accounts for anyone will have a negative effect on their credit scores/eligibility to lenders for up to 6 months, this is just what happens, so definitely don't let this put you off applying for new credit.

And as I mentioned above, even though most lenders only perform a 'soft' check on your credit file when you apply, which means that it won't negatively effect your credit score or be seen by other lenders, some lenders perform a 'hard' check, and this absolutely will negatively effect you if you attempt to apply for another card after this as other lenders definitely DO see this !!! My advice is therefore to apply for a number of 0% cards at the same time which should greatly improve your chances of being accepted for at least one and if you are rejected due to a 'hard' check, then this won't negatively effect your other applications at that time.

Not sure that is true regarding 'full and completed' applications, could be wrong though?

As far as I know, if you make a 'full and completed' application and the lender only performs a 'soft' check and subsequently refuses you, then no, that can not be seen by any other lender. Only you and the credit referencing agencies can see that a 'soft' check was carried out and this information will NOT be shared with other lenders.

Lenders can only see if you have either A ) opened a new account or B ) had a 'hard' check performed on your credit file. So applications themselves are not recorded at all, only the 'hard'/'soft' checks and/or opening of new accounts that may occur as a result.

A "full and completed application" will involve a hard search, not a soft search.

Well then from my understanding, some lenders will offer you credit after only performing a soft search, as this has certainly happened to me with most of my credit applications. Only very rarely has a hard search shown up on my credit file after I have opened up a new credit account.

Also, I have applied twice with one lender and was refused on both occasions. I would absolutely say that I submitted a 'full and completed' application on both attempts yet no hard searches ever appeared on my credit file as a result.

Some lenders will not even allow you to make a 'full and completed' application if you fail the soft search first. I am sure this is the case with Virgin and Capital One for example.

Ultimately it is impossible to know whether a lender will perform a hard or soft search during a credit application. I applied for a 2nd card with one lender and and was refused due to the fact that I already had one with them. This showed up on my file as a hard search even though the lender insisted that it was only a soft search. No idea what happened there, but I suspect that sometimes lenders don't even know what kind of searches they are actually carrying out !!!

Which credit file (singular) are you looking at as there are multiple?

I’m guessing it’s not just lenders that don’t understand searches here...

washtenaw

D3xt3r5L4b said:

washtenaw said:

D3xt3r5L4b said:

washtenaw said:

onlyfoolsandparking said:

washtenaw said:

Opening up a new card will negatively affect your credit score for a few months but it will definitely recover after this. And even though lenders don't ever actually look at your specific credit score number, they absolutely DO look at the fact that you opened up a new card recently and this can certainly effect whether they decide to offer you credit or not and/or how much credit they offer you and at what rates.

So in your specific situation, if you apply for a 0% transfer card and are successful, or if you are unsuccessful and the lender performed a 'hard' check on your credit file (most lenders just perform a 'soft' check that won't effect your credit score and won't be seen by other lenders), then this means that you are more likely to be turned down for credit and/or offered less credit in the 6 months after your application.

So if you only just want that one 0% transfer card for now, and don't plan on applying for any other form of credit soon like a mortgage/loan/car finance, then there's no need to worry, all new credit accounts for anyone will have a negative effect on their credit scores/eligibility to lenders for up to 6 months, this is just what happens, so definitely don't let this put you off applying for new credit.

And as I mentioned above, even though most lenders only perform a 'soft' check on your credit file when you apply, which means that it won't negatively effect your credit score or be seen by other lenders, some lenders perform a 'hard' check, and this absolutely will negatively effect you if you attempt to apply for another card after this as other lenders definitely DO see this !!! My advice is therefore to apply for a number of 0% cards at the same time which should greatly improve your chances of being accepted for at least one and if you are rejected due to a 'hard' check, then this won't negatively effect your other applications at that time.

Not sure that is true regarding 'full and completed' applications, could be wrong though?

As far as I know, if you make a 'full and completed' application and the lender only performs a 'soft' check and subsequently refuses you, then no, that can not be seen by any other lender. Only you and the credit referencing agencies can see that a 'soft' check was carried out and this information will NOT be shared with other lenders.

Lenders can only see if you have either A ) opened a new account or B ) had a 'hard' check performed on your credit file. So applications themselves are not recorded at all, only the 'hard'/'soft' checks and/or opening of new accounts that may occur as a result.

A "full and completed application" will involve a hard search, not a soft search.

Well then from my understanding, some lenders will offer you credit after only performing a soft search, as this has certainly happened to me with most of my credit applications. Only very rarely has a hard search shown up on my credit file after I have opened up a new credit account.

Also, I have applied twice with one lender and was refused on both occasions. I would absolutely say that I submitted a 'full and completed' application on both attempts yet no hard searches ever appeared on my credit file as a result.

Some lenders will not even allow you to make a 'full and completed' application if you fail the soft search first. I am sure this is the case with Virgin and Capital One for example.

Ultimately it is impossible to know whether a lender will perform a hard or soft search during a credit application. I applied for a 2nd card with one lender and and was refused due to the fact that I already had one with them. This showed up on my file as a hard search even though the lender insisted that it was only a soft search. No idea what happened there, but I suspect that sometimes lenders don't even know what kind of searches they are actually carrying out !!!

Which credit file (singular) are you looking at as there are multiple?

I’m guessing it’s not just lenders that don’t understand searches here...

I look at all three major credit referencing agencies i.e. Experian, Equifax and TransUnion (formerly CallCredit). I can't remember exactly but I'm quite sure that all their information regarding hard and soft searches on my credit file have matched each other in the past.

Like you, I also suspect that the credit reference agencies may not understand the difference between hard and soft searches properly either. Ultimately, if they do not share information regarding a search with other lenders, I assume that they refer to this as a soft search and if they do share the information, then I assume they consider this a hard search.

So technically, if a lender did in fact make a hard search on your credit file, but if the credit reference agencies all saw this as a soft search for whatever reason, that is all you need to know, because they will not share this information with other lenders and this will not effect future credit applications.

But as I said before, I think a lot of lenders are only performing soft searches when they assess an application as they can effectively get all the information they require from these.

D3xt3r5L4b

washtenaw said:

D3xt3r5L4b said:

washtenaw said:

D3xt3r5L4b said:

washtenaw said:

onlyfoolsandparking said:

washtenaw said:

Opening up a new card will negatively affect your credit score for a few months but it will definitely recover after this. And even though lenders don't ever actually look at your specific credit score number, they absolutely DO look at the fact that you opened up a new card recently and this can certainly effect whether they decide to offer you credit or not and/or how much credit they offer you and at what rates.

So in your specific situation, if you apply for a 0% transfer card and are successful, or if you are unsuccessful and the lender performed a 'hard' check on your credit file (most lenders just perform a 'soft' check that won't effect your credit score and won't be seen by other lenders), then this means that you are more likely to be turned down for credit and/or offered less credit in the 6 months after your application.

So if you only just want that one 0% transfer card for now, and don't plan on applying for any other form of credit soon like a mortgage/loan/car finance, then there's no need to worry, all new credit accounts for anyone will have a negative effect on their credit scores/eligibility to lenders for up to 6 months, this is just what happens, so definitely don't let this put you off applying for new credit.

And as I mentioned above, even though most lenders only perform a 'soft' check on your credit file when you apply, which means that it won't negatively effect your credit score or be seen by other lenders, some lenders perform a 'hard' check, and this absolutely will negatively effect you if you attempt to apply for another card after this as other lenders definitely DO see this !!! My advice is therefore to apply for a number of 0% cards at the same time which should greatly improve your chances of being accepted for at least one and if you are rejected due to a 'hard' check, then this won't negatively effect your other applications at that time.

Not sure that is true regarding 'full and completed' applications, could be wrong though?

As far as I know, if you make a 'full and completed' application and the lender only performs a 'soft' check and subsequently refuses you, then no, that can not be seen by any other lender. Only you and the credit referencing agencies can see that a 'soft' check was carried out and this information will NOT be shared with other lenders.

Lenders can only see if you have either A ) opened a new account or B ) had a 'hard' check performed on your credit file. So applications themselves are not recorded at all, only the 'hard'/'soft' checks and/or opening of new accounts that may occur as a result.

A "full and completed application" will involve a hard search, not a soft search.

Well then from my understanding, some lenders will offer you credit after only performing a soft search, as this has certainly happened to me with most of my credit applications. Only very rarely has a hard search shown up on my credit file after I have opened up a new credit account.

Also, I have applied twice with one lender and was refused on both occasions. I would absolutely say that I submitted a 'full and completed' application on both attempts yet no hard searches ever appeared on my credit file as a result.

Some lenders will not even allow you to make a 'full and completed' application if you fail the soft search first. I am sure this is the case with Virgin and Capital One for example.

Ultimately it is impossible to know whether a lender will perform a hard or soft search during a credit application. I applied for a 2nd card with one lender and and was refused due to the fact that I already had one with them. This showed up on my file as a hard search even though the lender insisted that it was only a soft search. No idea what happened there, but I suspect that sometimes lenders don't even know what kind of searches they are actually carrying out !!!

Which credit file (singular) are you looking at as there are multiple?

I’m guessing it’s not just lenders that don’t understand searches here...

I look at all three major credit referencing agencies i.e. Experian, Equifax and TransUnion (formerly CallCredit). I can't remember exactly but I'm quite sure that all their information regarding hard and soft searches on my credit file have matched each other in the past.

Like you, I also suspect that the credit reference agencies may not understand the difference between hard and soft searches properly either. Ultimately, if they do not share information regarding a search with other lenders, I assume that they refer to this as a soft search and if they do share the information, then I assume they consider this a hard search.

So technically, if a lender did in fact make a hard search on your credit file, but if the credit reference agencies all saw this as a soft search for whatever reason, that is all you need to know, because they will not share this information with other lenders and this will not effect future credit applications.

But as I said before, I think a lot of lenders are only performing soft searches when they assess an application as they can effectively get all the information they require from these.

The CRA’s report what is sent to them. If a lender instigates a hard search then a CRA (or CRA’s) will show and report said search. 

The CRA’s don’t dictate of define what is classed as a hard and soft search - that’s based on what information a lender looks at and how far down it gets “drilled into”. 

You can find more info here: https://www.checkmyfile.com/articles/what-landlords-employers-and-lenders-see-on-your-credit-report.htm

A soft search shows much, much less information than a hard search. 

Also I wasn’t implying that I didn’t understand the difference in searches and what’s reported...

Fingerbobs

I've never applied for a credit card, or a current account for that matter, without a hard search showing on at least one of the credit files. And I've applied for a lot of credit cards and current accounts

EmmieAwards

Hi again guys

Im juts about to apply for the balance transfer cards as it seems Im eligible, however one thing I dont uderstand:
my current Vanquis limt is £1500 with about £250 to pay off, what is being transferred, the £250 on its own, or the £1500 limit with the £250?
I know this is quite simple but Im just a bit confused still. Once I transfer it, will that mean I no longer have a credit card in case of emergency?

QrizB

@EmmieAwards for my recent balance transfer I told the new card company (Santander) exactly how much to transfer from my old one (NewDay). Santander didn't ask - or apparently care - how much my NewDay balance was and I still have both cards available to use.

If you have £250 balance with Vanquis you could ask to transfer that much to your new card, assuming you don't mind paying the fee on a £250 transfer. You could ask to transfer more (and pay a larger fee) or less (and pay a smaller one).

EmmieAwards

QrizB said:

@EmmieAwards for my recent balance transfer I told the new card company (Santander) exactly how much to transfer from my old one (NewDay). Santander didn't ask - or apparently care - how much my NewDay balance was and I still have both cards available to use.

If you have £250 balance with Vanquis you could ask to transfer that much to your new card, assuming you don't mind paying the fee on a £250 transfer. You could ask to transfer more (and pay a larger fee) or less (and pay a smaller one).

Thanks

So, obviously, transferring the amoutn I owed to the new card would remove it from the old card, but youre saying that they didnt check and you could transfter more of your limit rather than juts your owed balance?

Ideally, I just wanna transfer what I owe, pay it off, then use my new one like my old but with less interest.

TadleyBaggie

You cannot transfer more off a card than the current balance, or at least it shouldn't be accepted. If you have a balance of £250, then £250 is what you should transfer. Putting a card in a positive balance is usually against the terms and conditions. It can happen accidentally when getting a refund