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Bad credit rating

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Luke_B_2Luke_B_2 Forumite
1 posts
I have a very poor credit rating due to being a fool when i was younger, recently i tried gaining credit but was turned down. I was wondering if, paying back my debts now, albeit late would increase my rating enough to be considered/accepted for a mortgage? any insight into this would help so much. thanks.

Replies

  • McKneffMcKneff Forumite
    38.2K posts
    Part of the Furniture 10,000 Posts
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    You really need to see the status of your credit file first before anyone can help you.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • CKhalvashiCKhalvashi Forumite
    9.3K posts
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
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    What McKneff said.

    The other thing to bear in mind here is that you will need a more/less perfect rating before being able to gain a mortgage. I'm having problems remortgaging our BTL's at the moment, as even though there's nothing adverse in the payment history, I have personal guarantees on a large amount of business finance, which has to be declared also. I've traditionally been a high earner.

    If a lender doesn't like anything on the report, it may lead to problems later on, so assuming things stay the way they are, you may have difficulties gaining anything until it drops off the file, as it's a truthful representation of your past finances.

    Every time I go into the bank to do a few routine transactions, I'm told that I'm entitled to an extra £xx000 on an OD/CC or £50000 on an unsecured loan (I think the total I'm offered in Internet Banking is about £90k more than I have access to,) but the same bank won't remortgage risk they already have. Different products have different procedures.

    CK
    "I kada sanjamo san, nek bude hiljadu raznih boja" (L. Stamenkovic)

    Call me Remainer or Romaniac, but not Remoaner. It's insulting and I have the right to have my voice heard too.

    I can spell, my iPad can't.
  • CAB_National_RepresentativeCAB_National_Representative Organisation Representatives - Private Messages may not be monitored
    220 posts
    Luke_B wrote: »
    I have a very poor credit rating due to being a fool when i was younger, recently i tried gaining credit but was turned down. I was wondering if, paying back my debts now, albeit late would increase my rating enough to be considered/accepted for a mortgage? any insight into this would help so much. thanks.

    Hi Luke - our CAB reprentatives have been covering credit ratings on the board and we'd recommend taking a look at the information that we've got on our Adviceguide website, and also requesting a copy of your credit file. If you need any more help after that, we'd suggest contacting your local bureau.
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
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