Did you know that applying for credit too many times can penalise you against some credit deals or increase the interest rate you might pay? Virgin Money has a solution – Virgin Money Card Checker. It gives applicants a quick decision without leaving anything negative on their credit score, whether they pass or not. Sound good? Find out how we do it.
Responsible lenders make sure they know that borrowers will be able to pay back the money lent, whether it's a loan, a mortgage, a store card or a credit card. That’s why they run applicants through a credit check before they authorise credit.
A credit check is a snapshot of the way the applicant has dealt with money in the past. This should tell the borrower about the likelihood of repaying as the contract agrees.
Items that make up the check include:
It's that last one that worries people because every time you apply for credit, the lender performs a check and a record of that check goes onto your credit rating. Do too many over a short period of time and it becomes a negative factor.
To many borrowers, the idea that asking for credit can lessen your chances of getting credit is crazy.
But if you look at it from the lender's perspective, it makes a bit more sense. Someone who is refused credit multiple times is probably a high risk applicant. And lots of applications over a short period can indicate an urgent need for credit, which is not always a positive sign as it can show a lack of financial planning (whether this is a fair assessment or not).
The biggest problem with the negative effect of multiple checks is that it discourages people from shopping around. Because the advertised interest rate can be raised by some lenders if the applicant has a poor credit score, people do apply to different providers to see who's really offering the best deal. It’s not always as simple as comparing them online.
To Virgin Money, penalising customers for shopping around feels pretty unfair and uncompetitive.
That's why we've introduced Virgin Money Card Checker, a 'soft' credit check that looks into some basic facts about an applicant's credit history but does not leave a footprint on their history.
After asking for some key facts about your credit history, like your income, Card Checker gives you one of three quick decisions:
Think of Virgin Money Card Checker as a rough filter that gives you a good indication about your likelihood of getting one of our cards before you make a formal application. It relies on honest replies, but if you're a genuine applicant, that shouldn't be a problem. (It's actually quite rare for a customer to pass our Card Checker and then go on to fail the full credit check, so we’re quite confident that it’s robust.)
So once you've decided on the credit card deal that best suits your personal needs and circumstances, feel free to use the Virgin Money Card Checker with – no fee, no obligation and absolutely no chance of it affecting the very thing you're checking!Check now