Lenders search your credit file at the credit reference agencies whenever you apply for credit.

They want to confirm that you are who you say and you live at the address you gave. And they want to see how you handled credit in the past.

This happens whatever type of credit you want – mortgages, credit cards, store cards, charge cards, HP or hire purchase, overdrafts and personal loans.

Each time a lender searches your file, the fact is shown on your file. The search leaves a footprint. The footprint stays on your record for one year.

Be careful about making numerous credit applications before you are sure you want to go ahead. Lenders might suspect you have money problems if they see numerous searches within a few months.

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