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  • FIRST POST
    • Misteeq
    • By Misteeq 13th Jul 18, 12:48 PM
    • 21Posts
    • 3Thanks
    Misteeq
    Loan Application History
    • #1
    • 13th Jul 18, 12:48 PM
    Loan Application History 13th Jul 18 at 12:48 PM
    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.
Page 1
    • foxy-stoat
    • By foxy-stoat 13th Jul 18, 12:52 PM
    • 3,016 Posts
    • 1,693 Thanks
    foxy-stoat
    • #2
    • 13th Jul 18, 12:52 PM
    • #2
    • 13th Jul 18, 12:52 PM
    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.
    • zx81
    • By zx81 13th Jul 18, 12:53 PM
    • 19,347 Posts
    • 20,671 Thanks
    zx81
    • #3
    • 13th Jul 18, 12:53 PM
    • #3
    • 13th Jul 18, 12:53 PM
    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
    • By Misteeq 13th Jul 18, 2:15 PM
    • 21 Posts
    • 3 Thanks
    Misteeq
    • #4
    • 13th Jul 18, 2:15 PM
    • #4
    • 13th Jul 18, 2:15 PM
    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
    • By foxy-stoat 13th Jul 18, 3:44 PM
    • 3,016 Posts
    • 1,693 Thanks
    foxy-stoat
    • #5
    • 13th Jul 18, 3:44 PM
    • #5
    • 13th Jul 18, 3:44 PM
    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
    Originally posted by Misteeq
    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
    • By Clive Woody 13th Jul 18, 9:33 PM
    • 4,534 Posts
    • 5,118 Thanks
    Clive Woody
    • #6
    • 13th Jul 18, 9:33 PM
    • #6
    • 13th Jul 18, 9:33 PM
    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
    Originally posted by Misteeq
    How much do you currently owe and how much do you want to borrow?
    Rugby Union - The Greatest Game
    • DCFC79
    • By DCFC79 13th Jul 18, 9:47 PM
    • 32,908 Posts
    • 20,727 Thanks
    DCFC79
    • #7
    • 13th Jul 18, 9:47 PM
    • #7
    • 13th Jul 18, 9:47 PM
    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.
    Originally posted by Misteeq
    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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