What your credit score really means
Comments
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Not sure what you mean - ignoring it won't improve my chance of getting a mortgage and I'm desperate to move out of a shared rental.
I would appreciate advice that's going to help my chances0 -
Not sure what you mean - ignoring it won't improve my chance of getting a mortgage and I'm desperate to move out of a shared rental.
I would appreciate advice that's going to help my chances
He suggests ignoring the number because he is correct in saying it is a meaningless figure. What is important is the contents of your credit file. Any change to your report will cause this number to fluctuate.
I see from your previous posts that you were declined a mortgage and advised to build credit. It would be fair to say you weren't declined due to poor credit but lack of credit history.
When a lender looks at your file they ignore the number and look at the details. How much credit is available to you, how long have you had that line of credit, utilisation of your credit, etc.
The credit card you opened caused the fluctuation on your credit file. However now you have this line of credit available you're able to prove to other lenders that you can stay within your limits, pay on time, pay the balance in full. Do this every month and you will start to see your credit build and more options available to you such as mortgages.0 -
Despite having more than 10% deposit and potential mortgage payments being less than my current rent I have been turned down for a first-time mortgage from a couple of lenders. Advised to improve my credit score which, when I joined MSE Credit Club and checked 3 months ago, was 736. Since then, I have switched my current account to Nationwide and opened a regular saver with them, as well as a Help to Buy ISA. I have also applied for my first credit card, which has a small credit limit but I spend lightly on it and pay it off in full at the end of the month. I had previously lived at home with parents in Northern Ireland and only moved to England and my own rented place in Sept 2016, so have registered to vote and arranged to pay rent through Credit Ladder.
Last month, my score had dropped to 650 but this month it has dropped further to 485!
Would appreciate any advice
It's almost as though you didn't read the information in the link in post #1 of this thread.
Forget the score. There are 3 things a mortgage lender will consider:
1) Affordability
2) Your credit history. Note that's history not score.
3) Past dealings with them. Lenders' own records go back further than the 6 years the credit reference agencies hold.
My advice would be to get hold of all 3 of your credit files and consult an independent mortgage broker rather than applying for mortgages willy nilly.0 -
I'm glad I've seen this thread, a lot of people are obssesed by their credit score. I was the same! Although after reading this thread I feel more educated to understanding the myths of it now.
I regularly check my file with Experian and equifax to make sure all is in order.. I recently noticed Experian only added a financial associate 2 weeks ago which is an error, I'm a bit frustrated as I'm not associated at all ..
How is this possible ? I don't want this affecting my credit worthiness
Regards
Joany0 -
OK,so I've just had a major issue with talk talk,I left them in march, yet for 3months they were posting late payments on my credit file and my score plummeted,this has led to the initial mortgage offer I was going for (the only reason I found out about what talk talk were doing) changing drastically to the extent it was going to cost me an extra £46k over the term of the mortgage-this was solely down to talk talk posting late payments,which they admitted was there mistake0
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Received my new report from Clearscore today and they list a change as my mortgage going on to variable rate. However I do not have a mortgage and it was paid off over 2 years ago. USELESS!0
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Following This Topic to get the answer.Biker Biplob0
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Some individuals are obsessed with their credit score, specially when hoping to get away from debt. Your credit rating is very important in the event that you intend on borrowing – to get a motor car loan or even buy a house, for example.
I’ve sent away for my credit that is free report couple of that time period to check on for errors, but this report doesn’t include your credit rating.
Curiosity got the best of me, so a week ago I went in the Equifax website and paid $23.95 to get into my credit history and credit score.
Credit History: What Does It Mean?
Your credit rating indicates the danger you represent for lenders, compared with other consumers. The two agencies that are credit-reporting Equifax and TransUnion, use a scale from 300 to 900. Higher scores are viewed more favorably.
My credit history is 788, which isn’t perfect, but the majority lenders would consider this an excellent score. It’s important to help keep a tabs on your credit score and you stand as far as credit worthiness is concerned, you can look up websites such as Credit Sesame to help you find out that info if you don’t have any idea as to where.
Based on my credit score though, i ought to be able to qualify for some of the lowest rates of interest available and a multitude of competitive credit offers should also be available.0 -
Hi, is it better to leave an account dormant on your file (catalogue account) with a £2400 limit (of which the balance is £0) or should I close it, which looks better to most companies please? Thanks0
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Hi, is it better to leave an account dormant on your file (catalogue account) with a £2400 limit (of which the balance is £0) or should I close it, which looks better to most companies please? Thanks
No 1 on here will know specifically if it would look better, people will give opinions though.
Id say if your not using it then close it.0
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