6 things lenders do not know about you
It can all be a bit worrying making an application for a short term loan, pay day loan, secured or unsecured loans. Lenders require quite a bit of personal financial information so it can be of concern the type of information they learn about you. You may be pleased to know there are 6 things lenders do not know about you.
1. Soft searches
When making a decision to lend you money, some lenders will do a ‘soft search’ on you. You can always ask a lender if they will do a soft search on you. Only you can see this information. Other lenders cannot. When you see the words ‘administration check” or “quotation search” on your credit file, these are checks that others lenders will not see.
2. Student loans
Unless you got your student loan before 1988, lenders will have no idea about this. As long as you have kept up to date with your student loans and have not incurred a CCJ, ‘income contingent’ Student loans taken after 1998, are passed onto credit agencies by the Student loans company. Mortgage style student loans taken before 1998, will have any defaults and CCJ’s recorded on your credit file.
3. Council tax arrears
The council do not give away information about defaults on your council tax, so it doesn’t affect your credit score either. Paying them though is necessary as these types of arrears can face prosecution. You could end up with a criminal conviction.
4. Parking and driving fines
These have nothing to do with your credit so lenders cannot get information on them.
5. Your spouse or your partner.
You may only want to get a loan based on your personal finances and circumstances and not on your spouse or your partner. If you don’t have joint accounts or credit cards, then lenders cannot get information regarding your family or those you live with.
6. Declined applications
Have you ever worried whether a lender can see your declined applications? Most people do. Well rest assured they cannot tell if you have been declined a loan in the past. Lenders can only see the application made. However a lender is likely to conclude yoyu have a desperate need for cash if a high number of searches have been made against your name. The lender can safely conclude that you have been declined on previous applications.
Having said all this, keeping on top of your payments is very important. Start by budgeting personal finances, then when you do take out a loan you can stay on top of it. If you would like to get advice about what type of short term loan will works for you, you can call or contact us through our contact form here.