How far back does a credit check go?

If you’ve ever applied for a loan, mortgage, finance deal, or phone contract, you’ve probably heard of a credit check. 

But how far back does it go?

Understanding this timeframe can help you better manage your finances and improve your chances of approval. 

Today, we’ll be looking at what a credit check is, what credit lenders look out for when they conduct one, and how to improve your credit profile for finance and loan applications. 

What is a credit check?

Credit checks are conducted when you apply for credit types like mortgages, loans, and finance deals. 

To see if they can rely on you for repayments, they’ll take a look at:

• Any credit agreements you have - including loans, credit cards, mortgages, and overdrafts 

• Any county court judgements (CCJs), individual voluntary agreements (IVAs), or bankruptcy orders

• Missed or late payments 

• If you have any financial associates, e.g. someone you share a mortgage with

Split into a hard or soft credit check, the difference lies in how they affect your credit score. 

Soft credit checks are used to compare credit products, understand your eligibility, or get a quote. They usually happen if you use a credit monitoring service, or if an identity check is done by a company, and will not affect your credit score. 

Hard credit checks are conducted when you apply for credit types and show your full credit report and lending history. They will affect your credit score. 

How credit checks impact your financial profile   

If you’re having too many hard credit checks on your account in a short space of time, it can greatly affect your credit score. 

Not only will your score dip, but the checks will also be on your report for up to 6 months, reducing your chances of getting approved for credit types in the future - including mortgages and phone contracts. 

The timeframe of credit history reporting 

In the UK, credit checks usually go back six years, highlighting all financial behaviour, including: 

• Any missed payments

• Lines of credit 

• Debt addresses 

• Recent credit applications 

• Credit score 

Any credit issues typically stay on a report for up to six years - hence the timeframe. 

How far back do mortgage lenders look at credit history?

Similarly, mortgage lenders also look at the last six years of an applicant’s credit file. They’ll consider the factors mentioned above, as well as unusual activity such as recent debts and non-sufficient funds (NSF) fees. 

Depending on the lender, bank statements and debts that aren’t yet in a credit report may also be looked at. These include unusual withdrawals, deposits, or bounced payments. 

However, lenders are much more likely to look at more recent data to see how applicants are now managing their money, rather than denying the mortgage application because of a few missed payments six years ago. 

How far back do underwriters look at credit history?

An underwriter is usually found in the insurance and mortgage lending sectors, assessing the risk of loaning applicants money. 

Again, the last six years of your spending and credit habits will be examined.

Both credit reports and bank statements are reviewed, and any areas of concern are examined before deeming you approved for a loan, mortgage, or other credit/finance type. 

How to improve your credit history  

Improving your credit score isn’t as complicated as you may think, and there are a few things you can do to boost your score quickly. 

Here are our top tips: 

• Limit new credit applications 

  • If you’re having trouble getting approved for new credit types, the worst thing you can do is apply for another one. Each hard enquiry can take a minimum of five points off your current score and shows potential lenders you’re too reliant on borrowing money. 

• Check your credit report 

  • Make sure you get to know your credit report and dispute anything incorrect to remove it from your history. 

• Make payments on time

  • Being organised with your finances proves to lenders you’re reliable and can pay back any money in full and on time. 

  • If you make a payment over 30 days late, it will stay on your report for up to seven years. So, set a reminder and try not to treat yourself too much throughout the month so you have enough to pay any bills. 

• Join Boshhh

  • Surely a phone contract can’t help your credit score?

  • Think again. Our bad credit phone contracts are specially designed to increase the scores of those with poor credit history struggling to get approved for credit types like loans and mortgages. With the chance to increase your score by over 200 points in just six months, why would you not join Boshhh?

Get started with Boshhh

If you’re looking to improve your credit score while having access to the UK's leading phone network, contact us here at Boshhh today. 

With no credit checks, guaranteed score boosting, and affordable rates, you can’t go wrong when you choose Boshhh. 

Starting from just £9.95 per month, get a SIM-only contract with no credit check today!