Improving credit score

Pubi

Hi,

I would like to get a mortgage next year.
I've just checked my wifes and mine credit score and its not good.
My wife has very poor rating and I have fair.
We are on electoral role and we havent missed any payments.
But we did have credit card and loan debt.
So I did payed it off in full. (today)
We do have quite a lot credit cards and store cards.
From what I have found out we should start using those cards on small purchases every month and pay them off in full monthly.
Ok, we can do that.
That should improve our scores.

Should I cancel/close any of those credit card accounts?

What else can I do to raise my score?

Any advise on raising score?

thanks
Matt

Marco12452

Yes, your score will be affected by the number of credit and store cards you have.
Each time you apply for a card this also affects the score.
If you have moved in the last few years make sure your credit score is not being rated on any older properties.

holly_hobby

Firstly .. a credit score on a CRA website such as experian, is not the same as a lender credit score for mge purposes.

From your post that you have access to lots of rolling credit (i.e credit cards, flexi loans), which you do not use.

From a lenders point of view, and the higher up the LTV tree you go - the amount of access you have to such credit, even if your don't use it, have never used it or don't intend to use it - is its there.

Your affordability for the loan requested, will be based on your income and os commitments at the time of application - the issue is the lender will take note that you have future access, in addition to your mge borrowing, x amount of £. Which should you start dipping in to and using, wether to a lesser or greater extend, will have a direct impact on your income & outgoings.

If you get completely carried away - you may fall into payment probs, inc paying your mge .... you can see how they think.

You may be worrying for nothing .. or may not referring to the comments I have made earlier ...

This is what I would do, go and get an AIP (agreement in prinicple) with a lender you like the look of their mge deals, or go and pay a visit to a whole of market mge broker (check if there are fees), and see how that pans out.

Now, if your AIP/DIP is declined due to a low credit score (as you say you have no adverse. on voters roll etc ) I think the amount of available rolling credit may well be the issue.

You can then discuss this with the lender/your broker, and if reqd close off unreqd finance as applicable.

Don't cancel anything until you know its an issue ( as you never know, you may not need to cancel any of them to be successful in your application).

Hope this helps

Holly