Credit Rating: How it works and How to improve it discussion area

mjb1974

I am in the process of applying for a mortgage and have a decision in principle.

Unfortunately due to the builders moving the goalposts after arranging this I had to apply for a different mortgage product the next day resulting in 2 credit checks being completed on consecutive days.

On top of this I had previously applied for a credit card in November which I then decided not to take.

So I currently have 3 checks showing on my experian credit reference:

22nd November - Credit Card Application - Tesco CC.
20th December - Mortgage application - Nationwide
21st december - Mortgage application - Nationwide

How long will it be before this is not an issue? Obviously worried about it with respect to my full mortgage application going in in the next 4 weeks.

Any help would be appreciated.

oldcast

:(My money always runs out before the day I have planned. It seems that I can hardly keep my consumption in control. My money is always not enough. What should I do?

Willing2Learn

Hi oldcast,

Three options (combine all 3 for optimum results):

1. Cut down your spending
2. Increase your income
3. Keep to your planned budget

sfax

mjb1974 wrote: »

I am in the process of applying for a mortgage and have a decision in principle.

Unfortunately due to the builders moving the goalposts after arranging this I had to apply for a different mortgage product the next day resulting in 2 credit checks being completed on consecutive days.

On top of this I had previously applied for a credit card in November which I then decided not to take.

So I currently have 3 checks showing on my experian credit reference:

22nd November - Credit Card Application - Tesco CC.
20th December - Mortgage application - Nationwide
21st december - Mortgage application - Nationwide

How long will it be before this is not an issue? Obviously worried about it with respect to my full mortgage application going in in the next 4 weeks.

Any help would be appreciated.

Are they both classified as credit searches?

I don't think this is an issue for the mortgage. If you already have an agreement in principal, the credit file has been checked. I'm not 100% sure but I don't think they'll do a second credit search for the same application - why would they need to only four weeks later? Your report will be almost identical.

Pretty sure my bank didn't credit search twice but but you might get an early (non-credit) search search to check your identity.

mjb1974

sfax wrote: »

Are they both classified as credit searches?

I don't think this is an issue for the mortgage. If you already have an agreement in principal, the credit file has been checked. I'm not 100% sure but I don't think they'll do a second credit search for the same application - why would they need to only four weeks later? Your report will be almost identical.

Pretty sure my bank didn't credit search twice but but you might get an early (non-credit) search search to check your identity.

Yeah, both were designated as credit searches for mortgages

BugsyBrowne

TheBig? wrote: »

Sorry if this is in the wrong place, but dont know were else to post it.

Basically noticed there were a few searches on my free noddle report that were over twelve months old, so I disputed them as I've always thought after twelve months they should dissapear.

I've just received an email off Noddle (pasted below) saying otherwise. Is this right? Equifax and Experian have always deleted them after twelve months.



I hope you’re well. I’m emailing in regard to some recent disputes you’ve raised against several searches shown on your Noddle credit report.

I can see in all of your disputes you believe these searches should be removed as they are over twelve months old. It’s worth noting that searches remain on your credit report for two years and not one. Bearing this in mind, I’m afraid we’re unable to remove these searches for you.

Let me reassure you that searches have a neutral impact on your credit rating. Lenders don’t mind seeing searches provided there aren’t too many in a short space of time for the purpose of credit applications.

I hope I’ve made this clear. Please do get back in touch if needs be – I’ll be happy to help.

Thanks,

The Noddle Team.

I wouldn't worry mate its noddle where it wouldn't matter if searches were on there for 60 years as no lender searches noddle.

grumbler

TheBig? wrote: »

...I've always thought after twelve months they should dissapear....

They don't disappear, but nobody cares much about the searches older than 6 months.

Paula4729

Hi

I have recently cleared all my debt and my credit rating has increased lots. However my husbands seems to have decreased due to him making late payments last year on his barclaycard.

With the additional funds that are coming back into the household we have agreed to pay this on the credit cards (2) to decrease help pay them of sooner, he did apply for a balance transfer but got decline .

Anyway within 18 months time we are looking to purchase a property and get a mortgage. If my husband does not miss a payment on his credit cards or we clear them before this period and have no highlighted missed payments on his credit file, will his credit score increase enough for us to apply for a mortgage or will his score still be affected.

In a nut shell how long does the late payments affect you credit score for.

PS He also has some other credit agreement finishing this year too.

Thanks in advance

Willing2Learn

I believe late payment markers stay on your report for six years. Their significance reduces over time though.

Fleeb

Hi all, I posted some of the following questions in the mortgage section but it seems like they would fit better here:

I'm planning on applying for a mortgage in the near future, before I do I'd like to organise my finances in such a way as to minimise the chances of being rejected. I have obtained my credit reports from the three agencies and I'd be grateful for the board's input on the following issues:

1. I have one late payment (Oct 07) on a credit card that I closed several years ago. I understand there's nothing I can do about that until six years have passed but on the six year anniversary I can instruct the ratings agencies to remove that information, correct? While it remains on my record how significant an impact will it have on my applications?

2. I have a current account where two months have a ? as their status code. Is this likely to negatively affect my credit score and if so can I force the bank to update the record?

3. I have one credit card which I use frequently and for the majority of my spending as it gives cashback and a certain amount of protection when making purchases. I pay it off every month so never pay any interest - however a cursory glance at my report shows that the average balance when the CC company updates the record hovers around £300-500 a month. Am I better switching to spending via debit card (i.e. taking money directly from bank account funds) so as to keep my credit card balance close to zero?

4. I have two other credit cards. One has good rates for foreign transactions so I only use it for that purpose and the other I've had for ages but never spend on (it has a high credit limit but has had a small positive balance for at least two years - I kept it in case I ever needed a lot of money in an emergency). I could close both without any hardship but will closing them at the same time improve or harm my score?

5. Similarly I have an unused current account which I never got around to shutting down (zero balance for several years, £750 overdraft available if needed). Close or don't close?

I guess one of the things I'm most concerned about is whether closing lots of accounts/walking away from lots of credit over a short period will itself classed as a red flag by mortgage lenders? Many thanks for your thoughts on these points.