Do lenders hold data from previous hard searches?

redrosebud

Do lenders hold data from previous hard searches, and do they use this data in subsequent credit applications?

Say if you applied for a credit card and were declined, and then a few years later you apply to the same lender, do they only go off your current credit file, or do they take into account data they received from the hard search they conducted the first time you applied?

marcia_

 They use any data they already hold and whats on your credit file 

born_again

They will hold previous any acc usage or decline data on their system. But will judge that against any new Credit File data.
So a previous decline, does not always mean a outright decline on new applications.

redrosebud

Thanks both. What I'm specifically thinking of is, obviously when you make an application, they receive and process data from CRAs. But I'm wondering if they then continue to hold all that data (i.e. the full credit report) as part of the data they hold on declining the application, or if they just hold the fact that it was declined and the reason why. What I'm really questioning here is are you shooting yourself in the foot by making an application that's likely to get declined and making it more difficult to get credit from that provider in the future? Possibly a difficult question to answer specifically as lenders may have wildly different policies.

CliveOfIndia

If I understand correctly, you're asking if they will retain the CRA data from a search they performed years ago?  The answer to that one is "no".  But they will (or at least, are allowed to) retain data from any previous dealings they've had with with you as a customer.

So if say, your credit file was in a right mess ten years ago, that won't go against you now - they'll assess you based upon current data.  And bear in mind, over the years a particular bank will go through many changes, they will change their product offerings, their risk appetite, their target customer base, as well as taking account of the prevailing financial landscape.  So you may now fall into their "ideal customer" category whereas you didn't previously - or vice-versa.

But if you defaulted on a debt years ago, leaving you owing them thousands of pounds which they never recovered, that's a different matter - they may decide they don't want you as a customer ever again, even if you've now got a squeaky-clean credit file.

Not sure if this answers your question?

redrosebud

CliveOfIndia said:

If I understand correctly, you're asking if they will retain the CRA data from a search they performed years ago?  The answer to that one is "no".  But they will (or at least, are allowed to) retain data from any previous dealings they've had with with you as a customer.

So if say, your credit file was in a right mess ten years ago, that won't go against you now - they'll assess you based upon current data.  And bear in mind, over the years a particular bank will go through many changes, they will change their product offerings, their risk appetite, their target customer base, as well as taking account of the prevailing financial landscape.  So you may now fall into their "ideal customer" category whereas you didn't previously - or vice-versa

But if you defaulted on a debt years ago, leaving you owing them thousands of pounds which they never recovered, that's a different matter - they may decide they don't want you as a customer ever again, even if you've now got a squeaky-clean credit file.

Not sure if this answers your question?

Thanks so much Clive, that's exactly the information I was wondering about. Your answer is really helpful.