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

Tixy

wpearson92 wrote: »

Hi all ive been on these forums for a while reading them however I havent contributed allot.
Anyway Im 22yrs Old and im currently in the process of saving for a deposit for an house.
So now Im looking at making my credit report seem as good as it possibly can be to potential lenders.
Ive paid for a credit report and score from Equifax and they seem to suggest I have excellent/Good scored in Credit agreements, Searches, court information and on the electoral role is showing Fair due to me not living there for 2 or more years, I will have lived there for 2 years In october.

With these ratings I would of expected a score higher then 351 which it gave me.

So this made me question what i could do to improve.
I have some accounts which are currently open to my previous address (my parents house) would I be best changing these to my current address. These are previous finance comitments such as my car Finance etc... would these appearing at my previous house affect my score?

Im also wondering if you guys have any advice as to how to make my appeal better to lenders, im doing all the typical things, not going close to my credit car limit, staying clear of overdraft limits etc... not missing any payments.

Cheers for any contributions,
Billy

Hi, how soon are you hoping to be looking at buying?

Don't worry too much about the score they will sell to you, but it is a good idea to check over your credit files and think about things that would look better to a potential lender when you come to buy. Probably a good idea to get a copy of your credit file from each of the 3 agencies.

I would move all your credit agreements to your current address (unless any are due to be paid off very soon).

In terms of other things, definitely don't miss any payments. Don't take out payday loans. Preferably don't use your overdraft regularly (or don't live in it month in, month out). Ideally clear your credit cards in full each month. Don't take on big commitments that will affect how a mortgage lender will perceive your affordability. Don't apply for new credit products in the few months running up to applying for a mortgage.

wpearson92

Tixy wrote: »

Hi, how soon are you hoping to be looking at buying?

Don't worry too much about the score they will sell to you, but it is a good idea to check over your credit files and think about things that would look better to a potential lender when you come to buy. Probably a good idea to get a copy of your credit file from each of the 3 agencies.

I would move all your credit agreements to your current address (unless any are due to be paid off very soon).

In terms of other things, definitely don't miss any payments. Don't take out payday loans. Preferably don't use your overdraft regularly (or don't live in it month in, month out). Ideally clear your credit cards in full each month. Don't take on big commitments that will affect how a mortgage lender will perceive your affordability. Don't apply for new credit products in the few months running up to applying for a mortgage.

Thanks for the quick reply! oh it wont be soon around a years time ill be starting to look for houses, I dont want to be rushing into anything so Im making sure I have enough money to cover legal fee's and a higher deposit if required along with all furniture and house appliances etc...

I will make sure I swap over all my credit agreements with none due to be paid off immediately. I have around £1000 on my credit card at the moment but I hope to have that paid off way before I apply.

Does the amount of time spent in the current household affect your credit rating? Its made me worry abit as when i come to applying i will have only lived there 3 yrs

Tixy

wpearson92 wrote: »

Does the amount of time spent in the current household affect your credit rating? Its made me worry abit as when i come to applying i will have only lived there 3 yrs

It shouldn't affect a mortgage application, and 3years is a reasonably long period of time for someone who is renting.

A history of being on the electoral roll is probably more important that a long term at a single address.

wpearson92

Ah right, since I was eligible to vote ive always been on the electoral role apart from the 6months I had moved and was waiting for the next voting process to happen.
Thats made my view on the situation much more positive.
Thankyou very much

Thrugelmir

wpearson92 wrote: »

Im also wondering if you guys have any advice as to how to make my appeal better to lenders, im doing all the typical things, not going close to my credit car limit, staying clear of overdraft limits etc... not missing any payments.

Cheers for any contributions,
Billy

If obtaining a mortgage is your objective. Then both Halifax and Nationwide offer saving schemes for FTB's. The benefit being that saving with them is the brownie points you earn, and the demonstration that you can manage your money well. Regular saving requires the same discpline as paying a mortgage for 300 months.

wpearson92

Thrugelmir wrote: »

If obtaining a mortgage is your objective. Then both Halifax and Nationwide offer saving schemes for FTB's. The benefit being that saving with them is the brownie points you earn, and the demonstration that you can manage your money well. Regular saving requires the same discpline as paying a mortgage for 300 months.

Ive just had a look and this does look like a good idea! i could only see the nationwide one, is there any other similar banks to this?

Tixy

wpearson92 wrote: »

Ive just had a look and this does look like a good idea! i could only see the nationwide one, is there any other similar banks to this?

I think a few of the smaller building societies may do them still, and yorkshire bank have a home saver product (although I think I read that the rates were not brilliant).

wpearson92

Would a regular savings account with a decent interest beat these rates, If im aiming for a 10k deposit. Which i will have in a year

keefyboy_2

I have checked my credit file with Callcredit and have found several searches by Churchill Insurance services. I have never dealt with Churchill Insurance on anything or any of their other companies yet I have found several checks over the last couple of years recorded on my file. :mad:
What can I do about this to stop it please?

Former_MSE_Tara_E

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