Without a doubt, we recommend that everyone should spend time managing to boost their credit score. The higher your credit score, the more chance you have of your mortgage application getting accepted. No one is guaranteed to get approved, and different Lenders have their internal scoring systems.
Following we advise everybody like a first time buyer in Leicester, to not worry if you fall short with one Lender. Contact us and Speak to one of our mortgage advisors in Leicester their job is to match you to the correct Lender that suits your circumstances, end of the day we both want the same outcome to get you the best deal available.
We recommend going to ether Experian and Equifax. It’s a good idea to use multiple agencies to get an average of the numbers for your credit score. Just using one agency might hold incorrect data. Checking with several agencies will help you identify any such discrepancies.
There are some excellent practices listed below regarding things you can be doing to improve your credit rating:
Firstly multiple credit searches can harm your score. Be careful when using price comparison websites, which are significant culprits of credit searching on individuals. However you know you want to apply for a mortgage soon, it is wise to avoid using it for any other credit. While having some credit and paying it back is a good thing for your score, in the long run. In conclusion, Lenders do not like to see you increasing your borrowings just before making a mortgage application.
Being on the electoral roll adds many points to your score. It indicates stability and Lenders like that. Ensure your name spelled correctly and that it’s your current address, not an old one. However, if you are not registered, it’s easy to do so online.
If you max out your card each month, that will reduce your score. Using a credit card and paying off the balance in full each month is preferable. Not to mention, it is indicating that you are good at managing your money. Worst of all would be exceeding an agreed card limit or overdraft. Lenders want to know that you take your finances seriously.
Quite often, it can appear that you are living in two places at the same time on your credit report. Maybe you had forgotten to tell one of your credit providers that you have moved to a new house. Check all addresses have been spelled correctly. If you have lived in a flat, this can be tricky as the flat/apartment number can get formatted in different ways.
You should contact the providers of store/credit cards you no longer use and get the account closed. In the short term, this can harm your score briefly as the credit reference can’t tell if it’s you closing the account down or the provider. However don’t worry, it’s one step back to take two forward. Another good thing to do to reduce your chance of falling victim for fraud should you not notice you have lost a card you don’t use regularly.
If you have a family member or ex-partner connected to you, then this could be affecting your score. You won’t be able to get the financial association removed if the account is still live, in any case. To remove one of these links, you should contact the credit reference agencies and make a request.
Furthermore, many consumers had felt that credit scoring is an ‘unfair way’ of Lenders assessing applications. Lenders feel differently. It is much cheaper for them to operate this way.
Send an up to date copy of your credit report to your mortgage advisor upfront, and you will increase your chances of being accepted the first time. The more your advisor knows about your finances, the better. There are still some smaller Lenders out there that do not credit score. These Lenders do it the old-fashioned manual way, they will always have specific rules about the number of defaults and CCJ’s they will allow.
Date Last Edited: December 6, 2023