Search types, what they mean and how they affect credit decisions
A company carries out a search when they get a credit application. It helps them find information at your address(es) to decide whether or not to offer you credit. Not all searches involve lending, so you might find a search on your report for things like current account applications.
- How long will a search stay on my file?
- What does a Search mean to my credit status?
- Where do Searches come from?
- What can I do if I believe Search information is recorded incorrectly?
- What can I do if there is Search information relating to another person on my credit report?
- What is an Outstanding Debt search?
- What is a Money Laundering search?
- Will I be penalised for shopping around for the best rate?
How long will a search stay on my report?
We keep details of most searches for a year, but debt collection searches stay on your report for two years.
What does a search mean to my credit status?
Searches show potential lenders that you've made applications for credit or services, which won't necessarily be seen as a bad thing. But if you make lots of searches, it could suggest that you've over-committed, or maybe even committed fraud.
To avoid a lot of credit searches while you're shopping around, make it clear that all you want is a quotation for the likely cost of the product. Companies can then carry out a 'quotation search', which doesn't suggest that you have applied for credit. If you're refused credit, you can contact the lender to find out why.
Your Equifax Credit Rating™ is an excellent guide to help you better understand your score.
Where do searches come from?
A company makes a search when they receive a credit application to decide whether or not to offer you credit. Every time we show your credit report to a third party such as a lender, service provider, landlord or insurer, we record this as a search.
What can I do if I believe search information is recorded incorrectly?
If you've found search information that you don't think is right, you can contact the company directly to find out why. If you prefer, you can ask us to speak to them for you. To do this, click the Ask a question tab and choose Information is Incorrect - Searches from the drop-down categories. We'll then contact the lender and let you know their response. This can take up to 28 days.
What can I do if there is Search information relating to another person on my credit report?
If you're financially associated with someone, their searches might show on your report. The connection could be something you've applied for together, a joint county court judgment or a shared credit agreement such as a loan or mortgage. We are unable to remove these searches. These searches are listed on your Credit Report as you may have previously had a financial link to another individual which led to the creation of this search when they made an application for credit. Searches of this type are not supplied to lenders and will not influence any credit application.
What's an outstanding debt search?
We keep a record of any organisations that have looked at your credit report, in line with the Data Protection Act.
An outstanding debt search means that a company has tried to find you if you've left without clearing your debt.
Depending on how confident the search is, it will show in either the Credit searches or Other searches section of your report. Any company who looks at your credit report will be able to see outstanding debt searches in the Credit searches section, but only you can see the ones in the Other searches section.
Outstanding debt searches stay on your credit report for two years.
What's a money laundering search?
Organisations that offer investment products need to check that you are who you say you are. Checking your identity also helps stop anyone from using your details fraudulently.
Will I be penalised for shopping around for the best rate?
Looking for new credit can suggest a higher risk, so do your rate shopping before the lenders begin to search your credit information. To avoid a lot of credit searches while you're shopping around, make it clear that all you want is a quotation for the likely cost of the product. Companies can then carry out a 'quotation search', which doesn't mean you've applied for credit.
If there are more than five searches on your report over the last six months, this can affect your score and put off potential lenders. But more than one search by the same company on the same day will usually be treated as a single search.