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Originally Posted by gary_580
the reason i can see is risk. They would be aware if they reassed you that you were now a higher risk. My question is, do banks and builidng societies do this periodically?
Does anyone know the answer for fact as opposed to opinion?
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My 'opinion' is based on my many dealings with financial institutions over the years, including working for 2 for some years.
Once they have your business, they internally credit score you, and they track your account to determine their exposure (to financial risk) from your account. And that's based on your payment record to them.
Now, this is based on how it works in the credit card business - as I was told it.
I have also come across having had a credit check upon changing a loan/terms/schedule - because it's at that time they need to re-assess why you might be doing that - clearly if you're suddenly showing up with a bad credit rating, then it may (or may not) be in their interest to allow you to do so.
So
I would not worry about my credit rating if I were to partake of this scheme, but I'd be
extremely worried about making a mistake in managing it ending up costing me hundreds, if not more.