Do personal loan lenders check employer’s credit ratings and/or status? 17 January at 1:43PM in Loans 3 replies 332 views

london1973

As per the question really, i’ve noticed, through 3rd party sites and directly with lenders you are asked for employer details, and they often have a search function to ensure they have the right one..do they run a search on this to check whether your job is safe basically? My employer is currently in a CVA, and although in reasonable condition this still comes up as ‘insolvency’ status if you search the company online or credit check. Would this potentially prejudice a PERSONAL loan application-cheers

MorningcoffeeIV

No.            

Jonboy_1984

As far as I can work out it is simply so that they can chase defaults via the work telephone number and attempt attachment of earnings orders…even if the employee left three years ago and you have no up to date contact details, a daily call for over 6 months still ticks the box in their debt collection activity records….

Grumpy_chap

Quite often credit applications include a question about whether you are at risk of redundancy etc. 
Failing that, there can be a catch-all that asks if there is any other material fact that would be of interest to a lender.
If you know your employer is in a form of financial administration, it may be something you'd need to declare under either of those types of question.