When you apply for a loan with us—even if it’s to make a single purchase—we carry out a hard credit search with one or more Credit Reference Agencies (CRAs). This is a standard part of assessing your creditworthiness and affordability before approving any finance agreement.
What happens if you return the product and receive a full refund?
If your purchase is fully refunded and the loan is subsequently cancelled or settled quickly, we will update your credit file to reflect that the agreement has been closed. However, the hard search that was made during your application will still remain on your credit file.
Why can't the hard search be removed?
Hard searches are a factual record of a credit application, regardless of whether the loan is ultimately used or not. Credit Reference Agencies retain this information to give an accurate picture of a person’s credit activity. As a responsible lender, we’re not able to remove this entry unless it was recorded in error (for example, if the application was fraudulent or submitted without your knowledge).
Will it affect my credit score?
A single hard search usually has a small and temporary impact on your credit score. However, if you make multiple applications in a short period, it could have a greater effect. Lenders may also take note of the number of recent hard searches when reviewing new applications.
Summary
-
A hard search is completed when you apply for a loan with us.
-
Returning a product and cancelling the loan does not remove this hard search.
-
Your credit file will be updated to show that the loan was closed or cancelled.
-
The hard search remains as a factual record of your application.
If you believe the search was made in error or you have concerns about your credit report, please contact our Customer Support team, and we’ll be happy to look into it.