Appealing Credit Rating

kriss_boy

When I applied for my mortgage last year I was almost unsuccessful because my credit rating was horrendous.

This wasnt due to missed payments or debt, but because I constantly take out new cards for the benefits / vouchers they offer.

Even right now I have about 5 cards!!

My only worry is Im saving for a deposit on another flat but I know Ill have the same problem. Cant mortgage lenders just look at the basic facts rather than this 'rating'.

I may have had about 20 credit cards in the last 5 years but I havent got an ounce of debt to my name!

thriftymomma

Do your cards have high limits? Try closing a couple of unused accounts. May help.

CannyJock

Order your credit report and make sure that all the cards you think you've closed are showing as Settled.

It'll give you other details like whether you're on the electoral register.

never-in-doubt

kriss_boy wrote: »

When I applied for my mortgage last year I was almost unsuccessful because my credit rating was horrendous.

This wasnt due to missed payments or debt, but because I constantly take out new cards for the benefits / vouchers they offer.

Even right now I have about 5 cards!!

My only worry is Im saving for a deposit on another flat but I know Ill have the same problem. Cant mortgage lenders just look at the basic facts rather than this 'rating'.

I may have had about 20 credit cards in the last 5 years but I havent got an ounce of debt to my name!

Mortgages are scored totatlly different to mainstream credit, i.e. they have a deposit and they can take the house if you fall into arrears! Bottom line is that unless you had derogotary data registered or maybe high outgoings, they would not refuse you based on the amount of cards you have had over the last 5yrs.

As CannyJock suggested, i'd check the cards are settled - consider Experian as your first port of call as most mortgage lenders search Experian. If they are settled then don;t worry about applying for mortgages as you can clearly take statements with you to the broker/bank to confirm the £0 balance - but remember any debt you have is deducatable from any income so if you have £10k on cards showing they will work out a monthly amount assuming you had to repay it and if it meant that you;d struggle, they would refuse mortgage.

See where this is going.....? I think you'll find it was a question of 'affordability' and not so much 'risk rated'.

kriss_boy

I used experian when I got my mortgage over a year ago.

My credit rating was ridiculously bad, something like 930 outa 1000

Im tempted to close most of my cards as I really want to buy a small flat in a couple of years time. If the market stays flat then I think with a decent deposit its a safe enough investment to buy a small 50K flat in town if I know I can cover the repayments even its its vacant.

jago25_98

It's the credit immediately available to you that counts.

So if you've got £1,000 available to you on a credit card, you can't open that again elsewhere.

It takes 6 months for the credit to clear after settling an account. I think it then takes another 6 years before it drops off the record altogether.

Hope this helps