Moving home can be expensive and it is often a time when you will need to apply for credits of all sort. If you’re buying a home, you may have to apply for a home loan. You’ll probably be swiping your credit card too often as well.
It starts with the air tickets and then the movers and packers, you might need some new furniture or furnishing, then there are kitchen equipment to buy, home decor, new telephone and internet connections, the list is endless.
This means you’ll probably have too many credit searches appearing on your report—something which isn’t good for your credit score.
Here is how you can manage the situation:
Deal with Footprints
When you move, it’s possible to apply for credit enough times for it to look unusual. Every time a lender searches your credit report it leaves a ‘footprint’ which lets you check who has asked for information about you. These footprints also allow lenders to spot unusual activity such as a large number of applications for credit made by the same person in a short period of time. This could be a sign of fraud or that you are applying for more credit than you can afford. A simple solution is instead of applying for several separate credit accounts, think about taking out one big loan to cover everything you need. That way you may be able to haggle a lower rate of interest as well.
Lenders can also search your credit report for other reasons, such as to give you a quote or check your identity. Although credit reference agencies keep a record every time your credit report is searched, lenders looking at your report will know that these other types of search do not mean you have applied for credit.
So shopping around for the best deal shouldn’t cause a problem, but it is a good idea to check that the lender knows you are only asking for a quote.
If you think that a lender has refused to give you credit because of the number of credit application searches on your credit report, don’t worry. Simply find out the address of the lender’s credit department and write to them.
Explain that you are moving home and have had to make lots of separate credit applications and ask them to look at your application again.
Keep Accounts Up-to-date
If possible, do not apply for fresh credit from your new address until your name appears on the electoral roll and this information has been added to your credit report.
Many lenders will refuse to give you credit if you are not registered to vote from your new address. If necessary, you should give the lender your previous address when you apply and explain that you have just moved. Also offer them other proofs that you live at the new address—electricity and telephone bills.
Also, tell your existing lenders in good time so that your credit account details can be kept up to date. Moving your accounts will help a lender see that you really do live where you say you do, even if you are not on the electoral roll yet.
It will also help to stop someone else getting hold of information about your accounts and committing fraud. If the person you are dealing with cannot help, try raising the request directly with the lender’s credit department at its head office.
Credit Sudhaar is India’s first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.
Courtesy: Economic Times