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Many first time buyers and home movers feel credit scoring is an unfair way of mortgage lenders assessing applications. Of course, the mortgage lenders feel differently about this, as it works out much cheaper and gives more consistent outcomes to minimise their risk.
If you’re worried about the credit scoring system for obtaining a mortgage, don’t fret. There are many mortgage lenders out there, each with their own scoring systems and criteria.
It can be helpful to obtain a copy of your credit report, when applying for a mortgage. If you send an up-to-date copy of your credit report to your mortgage advisor upfront and you will increase your chances of being accepted first time.
How to Improve Your Credit Score
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Obtaining a Copy of Your Credit Report
You can use various credit reference agencies such as Experian and Equifax however we recommend CheckMyFile as it provides an overview based on information from multiple agencies.
CheckyMyFile is FREE for 30 days, then £14.99 a month. You can cancel this online anytime.
Check your credit score for free*
Try Checkmyfile and obtain a new copy of your credit report. We can use this document to work out how likely you are to be approved for a mortgage.
*Start your 30-day free trial now, then just £14.99 a month after. Cancel online anytime.
Tips to Improve Your Credit Score
- To improve your credit score, be careful when using price comparison websites as they can negatively impact your score by generating credit searches.
- If you’re applying for a mortgage soon, avoid applying for other credit for the time being. Having some credit and paying it back can help your score, but mortgage lenders don’t like to see increased borrowings.
- Being on the electoral register can also boost your score, so ensure your name and address are correct and up to date.
- Incorrect addresses can make it seem like you live in two places at once, so make sure all your addresses are spelled correctly.
- Maxing out your credit card every month can reduce your score, so it’s preferable to use it and pay the balance in full each month.
- Closing down store or credit card accounts you no longer use may have a short-term negative effect on your score, but it’ll benefit you in the long run and reduce your chances of falling prey to fraud.
- If you have a financial connection to a family member, friend, or ex-partner, it could affect your score if their credit history is poor. You won’t be able to remove financial associations if the account is still active, but you can request that credit reference agencies remove the financial links you have if the accounts are closed.
The more our trusted and experienced mortgage advisors know about your finances, the better they can look to help you.
