Loan Application History

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Misteeq
Misteeq Posts: 64 Forumite
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in Loans
Hi,

I just have a quick question which I am sure someone on here can answer :)

When applying for a loan - do they check previous debt history on your credit file or just your credit score?

I am about to apply for a loan which is for some consolidation and a new car. But I have noticed that the interest rate is a lot lower if you borrow money for a new car or home improvements.

I earn £50K - so the repayments are fine for me (even at a higher interest rate) - but I am just wondering if I say that the entire loan is for a new car for example - will the lender find out that I have previous debt?

Obviously I don't want to jeopardise my application - but keen to have a lower rate of interest if I can!

My credit score is very good.

Thanks.

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  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    They check credit history - you dont have a score, the lender scores you by their own method internally.

    Put down new car on the application, as this should be where most of the money goes.

    Lets hope you get a better rate than your current 10% loan ay.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    No one checks your score, as it's a made up number that only you see.

    Lenders will look at your credit history, plus other information on your application form.

    Be wary of lying. When they see that you have existing debt and now want more for a car, you'll risk plunging yourself firmly in to the high risk category.

    Alhough debt consolidation is also a sign of a high risk borrower....
  • Misteeq
    Misteeq Posts: 64 Forumite
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    Thanks for your reply.

    Does that mean they can see my existing debt balance when they check my credit history? If so, how will they know that I haven't already paid it off?

    Thanks.

    Sarah
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Misteeq wrote: »
    Thanks for your reply.

    Does that mean they can see my existing debt balance when they check my credit history? If so, how will they know that I haven't already paid it off?

    Thanks.

    Sarah

    Yes, they will be able to see your current debt at the time they get the credit report, which is normally a few weeks out of date.
  • Clive_Woody
    Clive_Woody Posts: 5,855 Forumite
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    Misteeq wrote: »
    Thanks for your reply.

    Does that mean they can see my existing debt balance when they check my credit history? If so, how will they know that I haven't already paid it off?

    Thanks.

    Sarah
    How much do you currently owe and how much do you want to borrow?
    "We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    Misteeq wrote: »
    Hi,

    I just have a quick question which I am sure someone on here can answer :)

    When applying for a loan - do they check previous debt history on your credit file or just your credit score?

    I am about to apply for a loan which is for some consolidation and a new car. But I have noticed that the interest rate is a lot lower if you borrow money for a new car or home improvements.

    I earn £50K - so the repayments are fine for me (even at a higher interest rate) - but I am just wondering if I say that the entire loan is for a new car for example - will the lender find out that I have previous debt?

    Obviously I don't want to jeopardise my application - but keen to have a lower rate of interest if I can!

    My credit score is very good.

    Thanks.

    What do you think checking the credit score would show ?
    Yes he has a score of 894, applocation accepted for a loan.
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