Trying to understand hard searches and impact on loan applications

london1973

I have a loan offer (provisional approval) from a company after a soft search, however i want to see if i can better it with my bank (HSBC) who offer a lower rate. My concern is that if this is declined i will have a hard search on my file which then in turn might prejudice the other offer, as they will presumably need to do one of their own prior to the loan being finalised…

So my intention would be quickly apply for the ‘first’ loan, should HSBC decline, before the hard search would appear on the file

now there is a huge possibility that i am massively overthinking this! And/or it simply ‘doesn’t’ work that way, as my understanding is limited to thinking that hard searches count against you massively - maybe this means loads and one is irrelevant.. but equally i don’t want to do anything stupid

some advice would be greatly appreciated

my credit file is pretty clean, no black marks, and all CCs up to date, i do have quite a few cards though, car finance, a couple of loans etc- no missed payments

MorningcoffeeIV

You're under-thinking it.

A couple of searches are not a big deal on a well-managed file. But if your status is a bit iffy, apply for both simultaneously.

Your biggest problem will be your significant existing indebtedness, not the searches.

london1973

Ok that’s helpful thanks…i had alot of ‘100% pre-approved’ on a third party soft search so i think my credit file is strong enough, but my fear is one hard search might tip it

so i think you are saying hard searches appear on the file almost immediately?

thanks again