What Scores More Point On A Application

MORE_MONEY_MORE_PROBLEMS

What scores better on a application, below are my OPINIONS just wondering how much of a difference in getting accepted/declined the following answers can make?

What do you think, what are the facts?


1) Homeowner or living with parents

in my opinion living with parents says that you have more disposable income as you have no mortgage to commit to, however being a homeowner makes you look more reponsable but might make you look overstretched when applying for a loan if you have a large mortgage.

2) Married or Single

again in my opinion being single says you a free with no commitments and can pay back the loan, however being married shows your more responsible and less of a risk but then it makes you look like you have got more commitments and the lenders want to know about you spouse income!

3) Children or No Children

have not got an opinion on this one!

xgingerx

HI PLEASE SEE BELOW:


1) Homeowner or living with parents

in my opinion living with parents says that you have more disposable income as you have no mortgage to commit to, however being a homeowner makes you look more reponsable but might make you look overstretched when applying for a loan if you have a large mortgage.
Type of Residence
If you’re a “home owner”, you will be viewed as a low risk and stable. Since you will also likely have equity in your property (a question you may also be asked in your application) you will score the maximum number of points (100). If you’re a “renter” and your property is unfurnished, you will be viewed as somewhat stable as you had the means to furnish your place and will therefore earn 60 points. If you’ve rented a furnished property or are living with your parents will be considered a medium risk and awarded 30 points. And finally, which residence in a caravan or mobile home may sound good to you, it’s not a favourable residence to a lender, and as such will earn you a score of 10 or less.



2) Married or Single

again in my opinion being single says you a free with no commitments and can pay back the loan, however being married shows your more responsible and less of a risk but then it makes you look like you have got more commitments and the lenders want to know about you spouse income!
Question 9: Marital Status & Kids (up to 100 points)
If you're married and have 1 to 2 kids, the lenders consider you settled, the cost of your offspring affordable and you are therefore eligible for the maximum number of points (100).
If you are married but have more kids, the lenders while considering you stable, may have some concern over your ability to repay the loan. Therefore, you will only be eligible for 70 (possibly even less if your number of children is more than 3. And, if you're not married and/or you have no children, you're considered less stable –even a risk (as you could move more easily), and are therefore only eligible 20 points.


3) Children or No Children

have not got an opinion on this one!

aj3001

I am single and live at home with my parents but still have a Very good credit rating so it all comes down to personal circumstances, according to the above guide the perfect applicant you will own your own home, be married with one or two kids but I'm sure they are a lot of people who are single in rented accomodation and no kids with better credit ratings

Thats why its all personalised to a certain extent

skylineboy2002

i just did a moneysupermarket cred check...

im classed as could be improved to poor..

ive got 1 cred card (19.95%) and am a student...

i think i heard that being on electrol roll is good for this, how do i get on it?

aj3001

Your rating will jump up immensley when your on the electroal registar but I personally wouldn't know how you get on it

ITConsultant

SkylineBoy - local council office will help you to get on the electoral role.

The moneysupermarket 'check' is just an estimate.

Things like postcode play a reasonably important factor, the banks compile/buy lists of defaulting debtors in postcode areas and assign a rating to it.

https://www.checkmyfile.com does a free 'credit score' without touching your credit file, i think its better than moneysupermarket personally....

Voyager2002

OK: checkmyfile gave me a score of 926 and said it was pretty high.

So why did Amex refuse me? Why was I declined for the BMI card?

Bloody credit scoring!

exel1966

Voyager2002 wrote: »

OK: checkmyfile gave me a score of 926 and said it was pretty high.

So why did Amex refuse me? Why was I declined for the BMI card?

Bloody credit scoring!

Because your score of 926 means absolutely nothing, just as a score of 100 means nothing.
There is NO such thing as a credit score (number). It's a marketing gimmick used by the major CRA's (not all) to relieve you of a few quid !
Every Financial institution scores differently and will judge their decisions based on their own criteria, not a nationwide one.

Ningaloo

Homeowner - scores more points as you have made a major financial purchase and as long as you have made regular payments with no arrears this will always score more brownie points.

Married - again a sign of a major committment

Children - ditto again

All these answers do is build up a picture of you and how you view your finances, if you have taken on committments in life and met these you are pretty safe bet to lend to again as you have a proven track record.

Best way to view this sometimes is to think of what answers you would prefer to see if you were lending your own money.....who is a better bet - someone settled with regular financial outgoings which they have always paid OR someone living at home with no finanical track record to prove that they have always paid money back.

Clariman

Lenders look for a whole variety of factors when deciding whether to lend you money or how much to lend to you. The first thing they do is their own credit scoring based on their own criteria, information on your application form and information retrieved from credit searches. They then look at their policy rules to decide whether your credit score is good enough and whether you are part of their target market for the card in question.

One of the areas that they look at when scoring you is what are known as "stability factors". The more "stable" someone looks, then the less risky they are for a lender. Stability factors would include being a homeowner, living in your current home for a good number of years, being married, being married for a good number of years, being with the same bank for a decent period of time, being with the same employer for a decent period of time etc.

So someone living at home with their parents is unlikely to be scored as highly as someone who has been living in their own home for 10 years, had 10 years with the same bank, been with the same employer for 5 years etc.

For a more detailed discussion of credit scoring (particularly in relation to rate tarting etc), you may find this article useful.

Clariman