How searches affect your credit report after a trust deed
After completing a Scottish trust deed many people are concerned about improving their credit score as quickly as possible. There are many myths about how “searches” might affect your credit rating. So what is a search?
Searches are recorded by the credit reference agencies when anyone looks at your credit file. This might be a matter of concern if you intend to apply for credit once you have been discharged from your protected trust deed.
Searches are recorded by the credit reference agencies because they must keep a record of people looking at your details. The name of a company searching your credit record will be recorded. Searches can stay on your credit file for a period up to two years. Information is not provided on whether your application for credit was accepted or not. Other information on your credit file, such as a record of your trust deed, will stay there for six years.
Types of searches that might be recorded after trust deeds include:
- You looking at your own report
- A lender you have applied for credit to checking your report
- An identity check connected to a financial application
- A quotation for credit where a credit search is required to produce the quote
After using trust deeds in Scotland, most people will wish to avoid the risk of further damaging their credit score.. Many people believe that having a lot of searches recorded on their file will affect this. In terms of checking your own credit rating after discharge from a trust deed please do not worry; when you search your own details it does not affect your credit rating according to Experian (one of the major credit reference agencies).
However, if you make multiple credit applications quickly your ability to get credit might be harmed. This is because some lenders might see a large amount of searches close together as evidence of high-risk, for example a risk that fraud is taking place or you are applying for an amount of credit that you will struggle to repay. Multiple credit searches after a trust deed won’t directly reduce your credit score, but they may reduce the inclination of some lenders to accept a credit application from you.
Having learned to budget carefully during their Scottish trust deed, many people will want to shop around for the best value credit if they apply again in the future. The trick is to restrict your search to window-shopping (rather than making full credit applications) until you have shortlisted the best value deals for which you wish to apply. This will minimise the number of searches that appear on your credit file.
If you are being refused credit frequently after your trust deed it might be best to suspend making credit applications for the time being. You’ll want to review your credit file and ensure that it is up to date and accurate. For example, have any default notices been recorded well after your trust deed was signed? If there are errors get them corrected by the lenders or the credit reference agencies before making further credit applications.
To find help, advice and information that will help you to get to grips with your credit report after your trust deed has been completed, Trust-Deed.co.uk is an excellent resource. Our site is full of helpful experts as well as other trust deed users. Whatever your trust deed question, our combination of expert advice, supportive forums and informative material will help you with your trust deed query. Make use of the site today or call one of our professionally qualified trust deed advisors on 0800 043 7201 today.
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