Lenders will be able to see details of all your credit accounts. This includes any mortgages, credit cards, overdrafts and personal loans you might have along with utility company bills.
Hard Credit Inquiries: A lender can see a record of who has checked your credit over the past 24 months, with some exceptions. Hard inquiries from rental applications, credit card applications, and loan applications, among others, will generally be visible to the lender.
The three main credit reference agencies in the UK are Experian, Equifax and TransUnion (formerly Callcredit). These are the ones most lenders rely on when considering someone for a mortgage.
Lenders look for this information in particular because it shows them whether you have made payments on time, any late payments or serious arrears, and the amount of borrowing you have (as well as associated credit limits) - all of which shows them how reliable and loyal a customer you may be.
Lenders use your credit report to get information on how reliable you have been at paying back debts in the past. When you apply for a mortgage you will have to supply payslips, P60s and bank statements to show how much you earn and what your monthly budget might look like.
If you're looking to access the very best mortgage rates, you could try and bump your credit score up into the 'excellent' category: Experian – 961 to 999. TransUnion – 628 to 710. Equifax – 466 to 700.
Lenders can't see your ClearScore account, and your ClearScore report won't directly affect your credit worthiness. However, your ClearScore account shows Experian data, which lenders do look at.
Soft credit checks happen when you check your own credit report, or when a lender checks to see whether you're eligible for certain products and interest rates. The lender may want a top-level view of your financial history so they can pre-approve any offers, or show you what you could potentially be eligible for.
It's also known as a hard inquiry or a hard pull. This hard credit search gives an in-depth look at your credit history so the lender can see how much credit you're currently juggling and how you've handled credit in the past.
A credit score of 721-880 is considered fair. A score of 881-960 is considered good. A score of 961-999 is considered excellent (reference: https://www.experian.co.uk/consumer/guides/good-credit-score.html). TransUnion (formerly known as Callcredit) is the UK's second largest CRA, and has scores ranging from 0-710.
ClearScore clearly advertise on their app that the average UK ClearScore credit score is 585, which puts most people in the 'good' bracket.
There is no minimum credit score that you need to have to buy a car. Unfortunately, there isn't a straightforward answer to this question. All 3 agencies in the UK use different scores but you have better chances of getting car finance with a credit score in the 'good' category.
700 is a good score — and with a little effort, you should be able to find a mortgage lender who will give you a competitive rate and get you into the home you want.
It can take one or two billing cycles for a loan or credit card to appear as closed or paid off. That's because lenders typically report monthly. Once it has been reported, it can be reflected in your credit score. You can check your free credit report on NerdWallet to see when an account is reported as being closed.
Payment History
More than anything else, lenders want to get paid. Accordingly, a potential borrower's track record of making on-time payments is of particular importance. In fact, in calculating a potential borrower's FICO score, payment history is the most important factor. It accounts for 35% of the score.
Your credit report does not include your marital status, medical information, buying habits or transactional data, income, bank account balances, criminal records or level of education. It also doesn't include your credit score.
You can expect a hard inquiry to temporarily decrease your credit score by five points or less, according to FICO.
Can You Fail a Soft Credit Check? You don't necessarily fail a soft credit check. However, the information obtained during that process might cause a company not to reach out to you.
There are some informational financial websites that suggest 6 is too many. They suggest that lenders won't even consider you for finance if you have 6 hard credit checks on your report.
Lenders and other entities use soft pulls to preapprove people for loan offers, conduct employment background checks, and to approve certain insurance applications, amongst other use cases. Only you can see soft pulls, so they don't impact your personal credit.
You will be able to see any soft searches that have been carried out when you check your own credit report. Soft searches will remain on your credit record for 12 months.
Highlights: Most negative information generally stays on credit reports for 7 years. Bankruptcy stays on your Equifax credit report for 7 to 10 years, depending on the bankruptcy type. Closed accounts paid as agreed stay on your Equifax credit report for up to 10 years.
There are some lenders in the UK who only check for information with Experian only. These include; Co-operative Bank, Nationwide, Vanquis, Virgin Money and Yorkshire Bank & Clydesdale Bank.
ClearScore gets your credit score and report from Equifax. Depending on the date of your report, there could be slight differences in the score we have and the one Equifax has. Lenders can use any of the credit reference agencies to check your credit score in the UK.
How far back do mortgage credit checks go? Mortgage lenders will typically assess the last six years of the applicant's credit history for any issues.