Credit Scoring

nikknock99

Hello,

Can anyone help me???

I have paid off all my debts, closed all my credits cards, owe no body anything only to find I can't get a morgage because I have no credit!!!!

My credit rating is good - am I better getting a credit card or a loan?

Does anyone know a good site which will tell me what lenders are looking for in order to get me a morgage in terms of credit reports?

Thanks

grumbler

nikknock99 wrote: »

I have paid off all my debts, closed all my credits cards, owe no body anything only to find I can't get a morgage because I have no credit!!!!

How do you know that this is the reason?

My credit rating is good - am I better getting a credit card or a loan?

If it really is good, you wouldn't have problems with mortgage. If it's just some figure sold you by some CRA, it's meaningless.
And yes, having and using (flawlessly) several credit accounts helps to maintain a good rating.

Does anyone know a good site which will tell me what lenders are looking for in order to get me a morgage in terms of credit reports?

To get an idea start with MSE site: Credit Ratings

BugsyBrowne

nikknock99 wrote: »

Hello,

Can anyone help me???

I have paid off all my debts, closed all my credits cards, owe no body anything only to find I can't get a morgage because I have no credit!!!!

My credit rating is good - am I better getting a credit card or a loan?

Does anyone know a good site which will tell me what lenders are looking for in order to get me a morgage in terms of credit reports?

Thanks

The CRAs think you've a good credit rating but its certain the mortgage company doesn't and they lend where's Experian or Equifax don't lend a penny so giving out meaningless scores has no risk to them whatsoever.

rb10

I would suggest that it would be worthwhile getting a copy of your credit report from the credit reference agencies, and seeing what is really on there.

_Andy_

I don't believe that is the case.
"I have paid off all my debts, closed all my credits cards, owe no body anything only to find I can't get a morgage because I have no credit!!!!"

Is this an assumption you've made yourself?
More info would be helpful, e.g. which lenders have you applied to?

Tixy

The only reason that this would be likely to be an issue is if you had repaid all your debts more than 6 years ago. If you have credit / debts in the last 6 years then these will still be appearing on your credit file and a potential lender would still be able to judge your repayment history from that information.

nikknock99

Thanks everyone, i have checked my file which is why i am faced with the problem.

All my credit accounts are closed and are not showing as 'open credit' thats why I have now been advised to get some credit and wasn't sure to get a credit card or loan?

Thanks

_Andy_

So when you said "I can't get a morgage because I have no credit!!!!" this isn't the case?

Tixy

Have you actually applied for a mortgage and been turned down? Did the potential lender specifically state that the reason for this was only because you have no open credit agreements?

Keeping an active credit history is a good idea. Doing this by having a credit card and repaying in full each month means it can cost you nothing to keep a current credit history.

edl2011

If you repay a credit card in full each month, it will cost you nothing [you may even be able to collect cashback or loyalty points] and will maintain an active credit history.