credit card application 3-4 months before mortgage application

usman330

My partner will be applying for a mortgage in approx 4 months time, however she doesnt have any credit cards so her credit report looks a litle bare.

She needs to boost her credit, however applying for a credit card will also show as a credit check on her file.

Would a credit card application around 3 months before mortgage application look bad to lenders? We are not sure whether its worth going for a credit card now to boost credit but so soon before mortgage application.


Also, roughly how many credit searches on file are ok in a 6 month period before lenders start to look upon it negatively.

Massive thankyou to anyone that has any insight into this

opinions4u

usman330 wrote: »

She needs to boost her credit, however applying for a credit card will also show as a credit check on her file.

Some banks offer guaranteed cards to their customers without a search taking place.

Would a credit card application around 3 months before mortgage application look bad to lenders?

In isolation, no. I'd suggest making the application more than 3 months ahead if possible. But the timing difference will be minor.

Also, roughly how many credit searches on file are ok in a 6 month period before lenders start to look upon it negatively.

It's not an exact science. I'd suggest as few as possible and certainly no more than 3.

Wh05apk

The credit card should be no problem, but will have minimal impact (unless she misses a payment and it will be disasterous)

Searches are not a big issue, it is now normal for people to get 2/3 searches done for a mortgage, the big killer is applications, be careful how many applications you make.

Meeper

Since when does making a full application change a credit file more than an AIP, which is when the search would happen?

Wh05apk

Meeper wrote: »

Since when does making a full application change a credit file more than an AIP, which is when the search would happen?

I've always understood that searches and applications are recorded differently, and presumably more weight is placed on applications than searches? It's normal for someone to do 2/3 searches to get a mortgage, but actually applying for 2/3 could potentially indicate fraud?

leveller2911

Wh05apk wrote: »

The credit card should be no problem, but will have minimal impact (unless she misses a payment and it will be disasterous)


Say for instance the OP had paid their CC 5 days late( only time in 20yrs) would that be a disaster?. If they had an A1 credit history previous to that one instance? and had managed to save up a 25% deposit???......... Oh and no debts whatsoever.........

I only ask as I'm curious...

Wh05apk

All depends on the lender, being late would still show as a "1" on her report, it may be their score is high enough that a single blip may have negligible impact, it may be that they are borderline, and that will be enough to bring the score down to a decline.

usman330

Many thanks Wh05apk and opinions4u, this info gives me a good insight.
I think its not worth her applying as it wont show much to boost her anyway, plus the fear or rejection of a card !
I tried the Barclaycard pre check (the one that leaves a soft footprint lenders cant see) - and it says 'its mixed news - we cant offer you anything but ......' so I think on that basis its best for her not to apply.

Meeper

Wh05apk wrote: »

I've always understood that searches and applications are recorded differently, and presumably more weight is placed on applications than searches? It's normal for someone to do 2/3 searches to get a mortgage, but actually applying for 2/3 could potentially indicate fraud?

Nope - a search is done for the AIP, and there is nothing further added to the credit file when it is converted into a full application.

Reasoning - the AIP is part of the application process. If you are doing an AIP, you are applying. Why should someone be doing 2/3 searches to get a mortgage? That's ridiculous. They should find the most appropriate mortgage for them, then apply for it, not apply for a load and then see which is the most favourable later.