how does an application affect credit history?

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Hi, ive just been reading through some older threads and have seen it mentioned a few times that if you apply for a loan and when the bank looks at your ICB records this could affect your credit rating? Am i understanding this correctly and if I am how does it affect it? I have made a loan application in the past and after being approved i decided not to take it. Does this mean my credit rating is affected because of this even though i did not take out the loan in the end? I have received an ICB report recently for my own records and the bank is shown to have viewed my record so is this reflected badly or is it recorded that i did not take the loan?
Apologises if ive completed misunderstood this and its a stupid question!!
 
Lenders draw their own conclusions about credit ratings/worthiness from your ICB records. I guess that some lenders may view repeated credit checks by other institutions without any subsequent loans/repayments being recorded as indicative of applications followed by refusals in which case they may "mark down" the applicant on the basis that other institutions may be refusing credit too?
 
Makes sense i suppose. Never heard of it or thought of it before so was just curious. Had only one application last year and not planning on anymore so not an issue for me but good to know anyway. Thanks:)
 
I can't comment on the ICB, but having worked for a UK credit reference agency over here (Hint - First letter E, last letter X ;)) I can say that a high number of Searches on your file could be seen negatively by some (Although technically lenders aren't supposed to, or so we were always told to advise consumers anyway).

I should add that I've not worked their since September 06 so the above may have changed somewhat by now, but that's how it used to stand.
 
ClubMan said:
Lenders draw their own conclusions about credit ratings/worthiness from your ICB records. I guess that some lenders may view repeated credit checks by other institutions without any subsequent loans/repayments being recorded as indicative of applications followed by refusals in which case they may "mark down" the applicant on the basis that other institutions may be refusing credit too?
Click to expand...
We all know that some banks are often tardy in recording loans on the ICB.
 
A colleague of mine worked as a lender with one of the big retail banks & said once that multiple checks with no corresponding loan were viewed negatively when they were making loan decisions......it was assumed that some of these checks were by lenders who then refused to advance the loan, rather than customer changing their mind.
 
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