Your credit file is checked when the signed completed application is sent to the lender.
- When the borrower gets loan quotes using the Loan Apply Form, you (the guarantor) are not credit checked at this stage.
- A key part of the loan approval process is checking the loan backer’s credit history is clean.
- Your credit history dates back six years and the lenders are looking for missed payments, defaults or CCJ’s.
- The credit search also looks for local electoral registration, and other relevant financial associations.
When the lender does their credit check this shows up on your file:
This generally is not a problem unless you do make multiple applications in quick succession, lenders do not like seeing this as it implies that you have had multiple rejections.