Understanding your application

Application FAQs

  • What is a soft search?

    It's a search made on your credit file and helps a lender to see whether you're eligible for their product.

    A soft search is not visible to any other lenders and it does not affect your credit score.

  • Will applying affect my credit score?

    We only do a full credit check after you submit your finished application.

    We'll tell you before we're about to carry out the check, so you can decide whether to continue with your application.

  • What does a full credit check mean?

    A full credit check happens when a company does a complete search of your credit report.

    These checks are recorded in your credit history, so any company searching it can see when you’ve applied for credit.

  • What is open banking?

    Open banking is a secure and simple way to help you understand your finances more effectively - from borrowing to savings, from credit scores to switching - and inform your financial decision-making. 

     

    Instead of manually assessing bank statements we need your consent to access some of the information on your bank and building society accounts. This speeds up the decision-making process for your loan application and, in some cases, may increase the chances of your application being accepted. 

     

    • We'll request this information only once and it will cover up to 12 months of transactions from your account.
    • Your account details will also be used to verify your identity and protect against fraud. 
    • We won't be able to access this information again without your consent. 
    • Your credit history will not be affected by open banking.
    • A full credit check is only carried out once your loan application has been submitted.

    The website https://www.openbanking.org.uk/how-open-banking-can-help-consumers/ contains a good explanation of open banking and further FAQs.

  • How will Ikano use your banking information?

    We use open banking data to ensure that you have enough disposable income to be able to repay your loan, as part of our commitment to being a responsible lender. We may use it to help protect you against fraud.

  • Is my data secure?

    Yes, it is secure. Nobody but you can grant access to your data, so the data remains safe. Ikano is regulated by the FCA in the UK, meaning that data security is treated with the upmost importance.

  • Will this impact my credit profile?

    No, using Open Banking only checks your bank account information for your ability to repay your loan, and your eligibility for a loan product.

     

    If you decide to take up the offer of a loan product this is when a credit footprint will be recorded on your Credit File.

  • Do I have to share my data?

    No, it is optional to use Open Banking. However, if Ikano asks for access to your open banking data and you decline to share it, Ikano Bank may not be able to approve you for the loan. This can happen when we don't have enough information about your ability to repay the loan, and this is needed as part of our responsible lending criteria.

  • Does Ikano share this data with anyone else?

    No, we will not share this data with anyone else.

  • Where can I find out more about open banking?

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