The impact of having a bank application refused
Discussion
I'm looking to switch banks and want to use a bank who currently have a £200 incentive offer. I phoned them yesterday and they seemed a little reluctant to progress my application. Perhaps it was just poor customer service as the person I was speaking to didn't have a clue. I then went onto their website and completed the application there. It takes them 5 days to get back to me on whether or not it's successful. If it's not successful does this have an adverse affect on my credit rating ?
Shore said:
I'm looking to switch banks and want to use a bank who currently have a £200 incentive offer. I phoned them yesterday and they seemed a little reluctant to progress my application. Perhaps it was just poor customer service as the person I was speaking to didn't have a clue. I then went onto their website and completed the application there. It takes them 5 days to get back to me on whether or not it's successful. If it's not successful does this have an adverse affect on my credit rating ?
Yes, any credit search, successful or not, adversely affects your credit rating.Shore said:
Ahh that's okay then nothing to lose really. Thanks
Yep, it makes no odds................other providers don't see the outcome of the application, just the search..........it's when you have lots of searches within a short period of time where the damage is done, as although the providers don't see the outcomes, the assumption is that they all declined which is why you kept applying to other providers.......Sarnie said:
ReallyReallyGood said:
I thought people like Experian claimed that reports did not affect your credit score?
Thats not correct. They do.Apply for a few credit cards or loans and watch your score decrease........
http://www.experian.co.uk/assets/consumer/download...
"Can searches affect credit scoring? Yes. When lenders look at your report, they can see any previous searches that resulted from you applying for credit. Lenders are allowed to use these searches - called credit-application searches - to help make decisions about you, normally when calculating your credit score. While credit-application searches can affect your credit score, other types of searches are not normally visible to lenders and do not affect your score. You can check your own report as often as you wish and this won’t harm your credit rating."
Edited by Gareth79 on Wednesday 29th March 13:11
Gareth79 said:
The OP is looking to open a bank account though, I assume that's not an application for credit, just a search, even though an overdraft might be offered?
http://www.experian.co.uk/assets/consumer/download...
"Can searches affect credit scoring? Yes. When lenders look at your report, they can see any previous searches that resulted from you applying for credit. Lenders are allowed to use these searches - called credit-application searches - to help make decisions about you, normally when calculating your credit score. While credit-application searches can affect your credit score, other types of searches are not normally visible to lenders and do not affect your score. You can check your own report as often as you wish and this won’t harm your credit rating."
Applying for a bank account is the same as applying for credit and they will hard credit search you........the "other" searches mentioned above are soft credit searches, ID checks and audits etc.......I have to have annual credit checks to assess my financial fitness to carry out my job, which is a soft credit search as it's not an application for credit..............http://www.experian.co.uk/assets/consumer/download...
"Can searches affect credit scoring? Yes. When lenders look at your report, they can see any previous searches that resulted from you applying for credit. Lenders are allowed to use these searches - called credit-application searches - to help make decisions about you, normally when calculating your credit score. While credit-application searches can affect your credit score, other types of searches are not normally visible to lenders and do not affect your score. You can check your own report as often as you wish and this won’t harm your credit rating."
Edited by Gareth79 on Wednesday 29th March 13:11
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