First time buyer advice/credit rating advice.

redapple1

Hi.

Hubby and I want to buy. We've saved our deposit.
I have a credit rating of only 460 his is 970.
Im not sure why mine is so crap....Ive had no missed payment for 2 years and paid off all but one credit card (which now only has a few hundred pounds on and will be gone next month).
Today I read that I need to close any unused accounts - looks like I've a lot open and therefore loads of available credit, but Im going to do all that tomorrow.
We've paid off our overdrafts too so accounts always in credit.

Anyway, I guess my question is will anyone give us a mortgage? We both have good secure jobs.
We are desperate to own our own home!! But dont want to apply for a morgage yet incase we get turned down as I read that will then go against us too.

Thanks.

Dave_Ham

Good news is that the scores you get on Credit Expert count for nothing, I mean nothing..

There will be a reason though, you need to get your credit report from both Experian and Equifax and get them to someone who can interpret them.

There will be a reason:

Are you on the electoral roll (Voters)?
Have you had a ccj or default in the last 6 years
Disputed any payments

It could be fraud, associated to someone with credit issues, old utility or phone bill registered at a previous issue??

Start at the credit files and then go from there..

Hope this makes some sort of sense...

redapple1

Yes Im on electoral role (3 years) and no defaults/ccjs.
4 late payments on stupid catalogue and credit card 2 years ago - my own daft fault on holiday and didnt set up DD.
Ive a lot of credit accounts - 5 credit cards, 3 catalogues - only 1 has anything on it so going to close all of them tomorrow. But will that still look bad??? Overdraft is now cleared too.
I have a car finance now thats it.

redapple1

Scores are from Equifax...does that make a difference?

Dave_Ham

Cheers for information.

I would be interested in the Experian results.

I cannot recall the numbers as I ensure my clients only ever take the statutory reports at £2 and these do not score.

Print off all of the reports for them both and then put them in front of someone to check.

Your level of unsecured accounts, is not a big issue contrary to some of the views on here.

The fact you are not using much of it should be a positive.

Missed card payments from 2 years ago, so long as not consecutive should not hurt you hugely now...

redapple1

Ok, thats positive at least. I'll endever to close all unused accounts anyway -no chance of me using them.

Like I said my experian score is 460 and hubby is perfect at 970.
Interestingly it hasnt improved in the last 3 months when I've paid off 2 credit cards of 1k each.

Working my backside off to make a better life for us - we have 2 small children and now in my 30s its time to own our own home.

Even if my score is 460 given that hubbys is 970 would there be a lender that would consider us?

redapple1

Mmm my Experian rating is 720....Hubbys is exactly the same. Why would that be?

redapple1

Sorry just realised I mis wrote - Equifax is 460 Experian is 720.

Dave_Ham

Do not focus on the scores, they mislead you.

Given there being no outside variables, you sound as if you would be straightforward lending...

Think you are worrying too much about the numbers, trust someone who you can get recommended and then let them broker the deal.

I wish you luck...

redapple1

Yeah I did panic when I saw mine.....as Ive solidly paid off everything over last two years, saved 20k so it has been tough going.
Well fingers crossed then as I read that lenders will refuse you on a scaore of less than 620.

Dave_Ham

Absolute rubbish

Few weeks ago had a client with 970 ish and had 3 ccj's unsatisfied and therefore almost unmortgageable.

Then had a client with 430 ish (Experian also) and they steamed straight thorough but limited credit exposure.

The banks interpret in their own unique way, so its only the information that is important....