Hard Credit Checks Explained

Check if you're eligible with no impact to your credit score

Personalised credit limit between £500 and £1,200

48.9% APR Representative (variable)

Subject to affordability

If you’ve thought about searching for a credit product, you might have heard the term ‘hard credit check’.
The thimbl guide to hard credit checks shares the answers to some frequently asked questions, such as:

A hard credit check, also referred to as a hard search, is a type of affordability check carried out by responsible providers while assessing your application for credit.
Credit providers will use the information found from a hard search to determine how likely you are to be able to repay the money you borrow. This is called your ‘creditworthiness’ and will be partly based on how you’ve managed any previous credit commitments.

When might a hard credit check be carried out?

A hard search could be carried out when you make an application for a credit product, including a mortgage, loan, or credit card. You might also need one for a mobile phone contract or car finance.

What’s the difference between a hard and soft credit check?

A soft search may be used by a credit broker to determine your eligibility for a credit product before you make a full application and will reveal an overview of your financial history. A soft search will only be visible on your credit file to you and the company who carried out the search and will not damage your credit score.
You can read more about soft searches in our guide.

A hard search provides a more in-depth view of your finances and will leave a mark on your credit file. Multiple hard searches within a short period of time could harm your credit score.

What sort of information will a hard credit check show?

A hard credit check will reveal your full credit report, which will include the following information:

Your personal data, such as your address history.
Your credit score.
Whether you’re on the electoral roll.
Your credit history, including any previous loans or credit cards.
Any late or defaulted repayments on current or past credit commitments from the last 6 years.
Any county court judgements (CCJs), individual voluntary arrangements (IVAs), or bankruptcies from the last six years.
Details of any other hard searches that have been carried out within the last 12 months.

How long will a hard credit check stay on my credit file?

A hard search could be visible on your credit report for up to 12 months.

Will a hard credit check affect my credit score?

Multiple hard searches within a short period of time could have a negative impact on your credit score.

Where possible, you should try to limit the number of hard searches you undergo to minimise the potential damage to your credit score. You could do this by using a credit broker to help you search for a credit product, such as a loan or credit card.

Credit brokers are able to scan their panel of lenders and providers for a product that could be suitable for you, based on the information you’ve provided. This could help to protect your credit file from multiple hard searches.

It’s important to remember that if you’re matched with a credit product through a broker and choose to make a full application directly with the provider or lender, an affordability check will be carried out, which could be either a hard credit check or Open Banking.

Can I get credit without a hard credit check?

In the UK, all responsible lenders and providers are required to carry out an affordability check on anyone who has applied for credit. This is in line with requirements set out by the Financial Conduct Authority (FCA) and applies to all authorised and regulated companies.
An affordability check could be in the form of a hard credit check or Open Banking.

An affordability check might feel daunting, especially if you lack confidence in your credit score, but it’s important to remember that these checks are in place to protect you. The creditor needs to make sure that you’re able to repay the money that you’re applying to borrow.

What’s Open Banking?

Open Banking is a type of affordability check that enables authorised and regulated third parties, such as lenders and providers, to access your recent financial information, via a read-only view of your online banking account. Authorised parties cannot take payments or make any changes to your account.
You’re in control with Open Banking; only you can decide who has access to your information and you can withdraw your consent at any time.

Rather than relying on your credit score, Open Banking provides lenders with a different perspective of your financial habits. This method could be used by providers who are willing to consider applications from people who may have poor credit history but whose financial circumstances have recently improved.

How quickly does a hard search show on a credit report?

This will depend on when the lender reports information to the credit reference agencies. You could expect a hard credit check to appear on your credit file anywhere between a couple of days to a few weeks.

I’ve noticed a hard credit check on my credit report that I don’t recognise; what should I do?

In this instance, you should contact the company who carried out the check as soon as possible.
While you should try not to panic, an unauthorised hard search could mean that somebody is using your personal information to apply for credit, which is why it’s important to take action as soon as you notice it.

Where can I get money advice?

You can access free, confidential money and debt management advice through organisations such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.