Who Does MBNA Use for Credit Checks?

When you apply for a credit card or loan from MBNA, they will likely perform a credit check on you But who exactly does MBNA use to access your credit information? In this article, we’ll explain who MBNA partners with for credit checks and what these checks entail

What is MBNA?

MBNA is a major UK credit card and loan provider. They offer credit cards, balance transfer cards, money transfer cards, personal loans, and more.

MBNA is a subsidiary of Lloyds Banking Group. They are one of the largest credit card providers in the UK.

What is a Credit Check?

A credit check is when a lender like MBNA accesses your credit report information to evaluate your creditworthiness

There are two main types of credit checks:

• Soft credit check – This is a basic check that does not impact your credit score. It allows lenders to confirm your identity and determine if you meet basic requirements.

• Hard credit check – This is a detailed check of your full credit report. It is recorded on your report and can temporarily impact your credit score. Hard checks are done for formal credit applications.

Who Does MBNA Use for Credit Checks?

MBNA relies on the major UK credit reference agencies to perform credit checks on applicants. The main agencies they use are:

• Experian – One of the three major credit reference agencies in the UK along with Equifax and TransUnion. Experian compiles credit reports and provides credit scores.

• Equifax – Another leading credit agency providing credit reports and scores. Like Experian, they hold extensive credit information on UK consumers.

• TransUnion – The third major credit reference agency used by MBNA and other lenders. TransUnion also calculates credit scores.

So in short, MBNA will use one or more of these three agencies when they need to check your credit for a new application.

The credit reference agencies maintain extensive databases with information on UK consumers’ borrowing and payment history. This allows lenders like MBNA to determine creditworthiness.

What’s Included in a Credit Report?

When MBNA checks your credit, here are some of the key pieces of information they will access from the credit agencies:

• Payment history – Records of your past borrowing and whether payments were made on time. This is one of the most important factors.

• Outstanding debts – Any current credit accounts, loans, or other debts. The number and type are considered.

• Credit inquiries – Requests for your credit report from other lenders. Too many can negatively impact your score.

• Credit history length – How long you’ve been using credit. A longer history is better.

• Public information – Bankruptcies, court judgments, and other public records.

• Personal details – Your name, address, date of birth, and employment info. This helps confirm identity.

Soft vs Hard Credit Checks

As noted above, MBNA may perform either a soft or hard credit check depending on the situation:

• A soft check is used when you make an initial eligibility check for a MBNA product. This allows them to see if you meet basic criteria without impacting your credit score.

• A hard check comes when you formally apply and fill out an application. This checks your full report data and can temporarily lower your score.

• Too many hard checks in a short period can negatively impact your ability to get approved. But soft checks done for rate shopping won’t hurt your chances.

How Checks Impact Your Credit Score

When MBNA does a hard credit check for an application, it can impact your score in a few ways:

• It goes on your credit history, which can lower the average age of your credit accounts.

• Too many hard inquiries in a short period may make you seem “credit hungry.”

• New credit activity can decrease your length of positive credit history.

• Opening new accounts lowers your average account age.

That said, one or two hard checks from applying for a MBNA card or loan normally won’t cause significant damage. The impact is relatively small and your score will likely bounce back within a few months.

Checking Your Own Credit Reports

While MBNA relies on Experian, Equifax, and TransUnion for credit checks, you can also access your reports directly from these agencies.

Checking your own credit reports allows you to:

• Review accuracy and check for errors that could affect your score.

• See what information potential lenders will review.

• Monitor your credit usage and history details.

• Detect any suspicious activity like fraud or identity theft.

• Build understanding of how your credit works.

You are entitled to free copies of your credit reports from each agency. Comparing reports gives the full picture as data can vary between agencies.

Summing It Up

When you apply for a MBNA credit card or loan, expect them to perform a credit check using major UK credit bureaus like Experian, Equifax, and TransUnion. This allows MBNA to review your credit history, debts, payment behavior, and other details to determine if you qualify.

Soft credit checks done just for pre-qualification won’t impact your credit score. But formal applications generally require a hard credit check that could cause a small temporary drop in your score. By checking your own credit reports periodically, you can catch any errors and monitor your credit standing.