Company searching my credit record for an insurance quote??

[davido140]

Bit of an odd one this,

I've done about 3 or 4 speculative quotes on gocompare.com recently as I've been faffing over what car to buy.

I checked my credit score thingie for other reasons on creditexpert.co.uk and blooby RBS on behalf of Privelege have run a search on my credit record.

I'm sure I agreed to this in the T's and C's on gocompare that nobody every reads, but it begs the question why?

If I had requested to go ahead with their policy and pay monthly I can understand it, but just to get a result amongst dozens on a comparison site?

If all the companies did that and then I applied for a new credit card or mortgage I'd be boned as multiple searches in a short period can damage your score (according to experian anyway)

Very bizzare, I guess the moral is beware price comparison sites if you're applying for a mortgage????

[mcflurry]

It's so they can check you exist lol

[B16JUS]

i thought is was so they can offer you pay monthly option

[bigandclever]

gocompare t and c said:

Credit searches
Many insurance and financial services providers operate a credit scoring system and will carry out checks with credit reference and fraud prevention agencies. These checks will include electoral roll and credit information. The insurance checks are registered as general insurance searches and may be viewed by other companies when you apply for credit or insurance. Often the financial services quotes you request will only do a credit check once you have decided on a particular supplier. Every application you submit for a loan or credit card may affect your credit scoring so you may wish to keep applications to a minimum for your credit rating. Again, this is not happening specifically because you are using our service. This may happen regardless of whether you get a quote via the internet or phone for any of these services. PLEASE REMEMBER while we do not carry out credit searches on our website, our partners may do so if you choose to apply for credit or insurance with them.

Searches aren't the same as a credit check, and don't affect your credit score in any way.

somewhere else said:

Lenders can also carry out a search for reasons other than processing an application for credit. For example, providing a potential applicant with a quotation for credit, or checking their identity, also leaves a footprint on your credit report.

When lenders see a large number of applications for credit on your file in a short space of time, this can trigger alarm bells. For example, this might indicate that you are struggling to manage existing credit commitments, or that someone is attempting to commit fraud in your name. Therefore, lenders are wary of any abnormal activity of this type on your credit report.

Of course, a high number of searches might result from shopping around for the best credit offer. In order to avoid this problem, lenders can carry out two types of search: a ‘credit application search’ which leaves a ‘hard’ footprint, and a ‘quotation search’ which leaves a ‘soft’ footprint.

Getting quotation searches will enable you to get basic details of what’s on offer from a range of lenders, while leaving only soft footprints on your credit report. Once you’ve selected the most appropriate deal, you can then make a formal application for credit, creating a hard footprint. In any event, lenders will always tell you before carrying out a credit check and before verifying your identity via your credit report.

Edited by bigandclever on Monday 1st June 07:45

[davido140]

bigandclever said:

Searches aren't the same as a credit check, and don't affect your credit score in any way.

I've learned something today! Thanks!