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  • FIRST POST
    • phantom177
    • By phantom177 14th Sep 17, 5:43 PM
    • 12Posts
    • 1Thanks
    phantom177
    credit rating
    • #1
    • 14th Sep 17, 5:43 PM
    credit rating 14th Sep 17 at 5:43 PM
    hi my son and wife tried for a mortgage and where declined as there credit rating was low and they needed 15% deposit which they havent got they where told because they hadn't had a loan on a credit card and repaid itthat is why they needed 15% deposit
    but if they had multiple loans with a credit union and repaid them all would this improve there chances
Page 1
    • zx81
    • By zx81 14th Sep 17, 6:01 PM
    • 14,042 Posts
    • 14,728 Thanks
    zx81
    • #2
    • 14th Sep 17, 6:01 PM
    • #2
    • 14th Sep 17, 6:01 PM
    No. That's madness.

    Tell them to get credit cards, use them and clear in full each month. There is no need to pay to borrow money if they don't need it.
    • Nebulous2
    • By Nebulous2 14th Sep 17, 6:30 PM
    • 1,624 Posts
    • 985 Thanks
    Nebulous2
    • #3
    • 14th Sep 17, 6:30 PM
    • #3
    • 14th Sep 17, 6:30 PM
    They need to go back to basics:-

    Check their credit history with the CRAs.
    Make sure they are on the electoral roll.
    Pay everything on time.
    Use credit cards, credit builder ones if they can't get others. Stay well within limit and pay in full every month.
    Build as big a deposit as they can.

    Did they apply for a mortgage through a broker? Surely the broker would have given some ideas to improve their chances?
    • badmemory
    • By badmemory 14th Sep 17, 6:36 PM
    • 936 Posts
    • 967 Thanks
    badmemory
    • #4
    • 14th Sep 17, 6:36 PM
    • #4
    • 14th Sep 17, 6:36 PM
    I would have thought a series of credit union loans would just prove that they were incapable of managing their money & they keep needing loans to bail themselves out. ZX is right, a credit card, paid in full. In fact, if they are new to them, I would say only spend on the cc if they have the cash sitting in the bank the day they spend. It is far too easy to say well we will get paid before the bill needs to be paid, that is how you get in debt.
    • cjmillsnun
    • By cjmillsnun 14th Sep 17, 8:27 PM
    • 291 Posts
    • 196 Thanks
    cjmillsnun
    • #5
    • 14th Sep 17, 8:27 PM
    • #5
    • 14th Sep 17, 8:27 PM
    Going to agree with everyone else.

    Go back to basics. A credit card, paid in full every month, and a sim only mobile contract.

    Save a deposit. Find a specialist broker for the mortgage.
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