What Are Banks Really Looking For In Your Credit Report?
We all know credit scores and repayment history matter, but lenders dig deeper than that.
Too Many Enquiries
Every time you apply for credit - whether it's a credit card, personal loan, or even a store finance offer - it creates a mark on your credit report. If banks see multiple enquiries within a short period (say, within a few months), it can raise red flags. It might suggest you're in financial trouble or unable to manage your existing debts, which makes you look riskier in the eyes of a lender.
Frequent Moves or Job Changes
Lenders prefer to see signs of stability. If you’ve changed jobs or moved house several times in a year or two, it could imply instability. Banks want to know that you have consistent income and living circumstances that support your ability to repay a loan over time. Too many changes might make them question your reliability.
Unsecured Credit Applications
Unsecured credit - like personal loans, credit cards, or Buy Now Pay Later (BNPL) services - doesn’t have any assets backing it. If you’ve applied for several of these, especially within a short timeframe, it can hurt your credit score. It tells lenders that you might be relying too heavily on borrowed money to fund your lifestyle, which can be a major red flag.
Age of Your Accounts
Older credit accounts show you have a longer track record of managing credit responsibly. Opening multiple new accounts in a short time, however, can make you appear impulsive or financially stretched. Lenders prefer borrowers with established credit histories - the longer your accounts have been in good standing, the more favourable it looks.
