When you apply for credit, the bank or lender will carry out a credit application search on your credit report. Before you make this application, it may be a good idea to check that all the information on your credit report is accurate and up to date.
There may also be some small changes that you can make straight away to increase your credit score before you apply (see ‘ways to improve your credit score’).
The bank or lender will look at your personal and financial history, see whether you’re high risk or low risk, and then finally decide whether to offer you credit or not.
Most lenders carry out a ‘credit application search’, which means that the search shows up on your report. This will stay on your record for other lenders to see.
If a lender sees that you have made a lot of credit applications in a short space of time, they are likely to turn your application down. This is because the applications make it look like you rely on credit to get by, and that you may struggle to pay them back.
For more information about credit reports, scores and applications, visit our Learn section.