A vast number of you are requesting information as to your credit reference record and in particular, what effect are lender searches having on your record in response to applying on-line for personal loans and mortgages. Beyond doubt, on-line loan/mortgage applications are logged on your credit record with every enquiry. The credit report agencies say that application information is a way of monitoring fraud say, someone applies for 10 loans in one week and you are the tenth loan provider, are you going to pass this person for a loan? Probably not! In some cases reported to me the application is only "out of interest" with no real intent to actually take the loan. In such circumstances you will still have this application on your record should the search only be logged if finance is provided? I think so. For the record all enquiries are held for 1 year on your credit file. There are two types of searches

1. General Enquiry

This type of enquiry produces a report on your voters role details, county court judgments (CCJs), but not credit information. This type of enquiry is used by everyone who does NOT fit the profile of a Credit Enquiry (below).

2. Credit Enquiry

Credit enquiries are ONLY available to companies that provide two-way information being, a company that offers credit to its customers, and then provides the credit reference agency with the finance details, and any payment defaults or further finance provided. This creates a self perpetuating database of credit that cannot be accessed by any company that does not share two-way information.

The nasty taste of the two-way arrangement is that the credit companies, banks, finance houses etc. refuse to allow access to this database which means that, say, a small business wants to search on a customer for a big deal, they will not get more than the voters role and CCJs to help them assess a credit risk little wonder some appalling credit deals are sinking businesses every day. Ask your bank manager the next time you meet why their bank insists on withholding prime information yes, cartels are alive and well in our own back yard!

Many thanks to Colin Duguid of Debt 24.com who is taking the time to provide this information as a service to homeworkers.