Take the guesswork out of applying for credit

Here’s how to find out if you’ll qualify for a mortgage, credit card or loan without leaving a record or affecting your score.

It’s a Catch-22: you want to take out a new credit card (or apply for a mortgage) and while comparison sites make it easy to get a general idea of the best deals on offer, they can’t tell you which you would actually be accepted for, or even the rate of interest you might be offered if you are accepted, without you submitting an application. And the problem with that is that every time you put in an application to apply for credit or a loan, it leaves a footprint on your credit file (known as a ‘hard search’). And it’s not just applications for loans, credit cards and mortgages that leave their marks. ‘Utility companies and mobile phone providers may also conduct hard searches when setting up new accounts, because they are also extending a form of credit to the

individual,’ says Equifax’s Lisa Hardstaff. Too many hard searches in a short space of time may lower your overall credit score and make it harder for you to get credit in the future. See the problem?

THE SOLUTION

Now, however, there are useful online widgets called eligibility calculators that make it easy to check, before you make an application, what your chances of being accepted are. They use a soft search that won’t leave a mark on your credit file – even though you can see it, lenders won’t be able to. Some eligibility calculators will even show you the likely APR and credit limit you would be offered. You’ll find calculators at Experian, Moneysavingexpert, Credit Karma, Moneysupermarket and Totallymoney, as well as on the websites of some high-street banks.