How to Establish Credit Rating for Mortgage

xmodz

Im 19, and i want to buy a house in the next few years hopefully.

I need to establish a Credit Rating for me to do this.

The only thing i have on contract is my phone contract.

i have a interest free overdraft limit, if i use this will it improve my credit rating.

thanks in advance

im on the electoral role so Iv done that,

I have no credit cards

Yorkie1

I would not start living in my overdraft.

Make sure your phone is paid off monthly - on direct debit if possible.

I would get a credit card though, use it for small amounts and make sure you repay it every month - set it up with direct debit.

Make sure all your addresses on various accounts etc tally and are the same.

The electoral roll is the other important thing and you're on that.

Have you obtained your statutory credit reports to check there's nothing unexpected on them?

xmodz

Yorkie1 wrote: »

I would not start living in my overdraft.

Make sure your phone is paid off monthly - on direct debit if possible.

I would get a credit card though, use it for small amounts and make sure you repay it every month - set it up with direct debit.

Make sure all your addresses on various accounts etc tally and are the same.

The electoral roll is the other important thing and you're on that.

Have you obtained your statutory credit reports to check there's nothing unexpected on them?

can you recommend me a card where i wont get charged interest or a little amount,

my phone contract is paid by direct debit.

my address on all my account is the same, but where it sometimes ask how long you have stayed in the house might be different as i dont know what month i moved into the house. I know what year, will this affect anything.

A did get a statutory report and it didn't show up with anything i didn't expect

Thrugelmir

Start saving regularly. Have you looked at the Nationwide or Halifax first time buyer accounts?

This will build your credit rating better than having debt usage.

xmodz

Thrugelmir wrote: »

Start saving regularly. Have you looked at the Nationwide or Halifax first time buyer accounts?

This will build your credit rating better than having debt usage.

iv been saving regularly and put the money in the stock market and in bonds,

I dont like my cash just sitting in a bank,

what benefit will having a first time buyer account bring actually as it doesn't state anything on nationwide

Thrugelmir

xmodz wrote: »

what benefit will having a first time buyer account bring actually as it doesn't state anything on nationwide

An internal credit rating. As regularly saving demonstrates you ability to manage your money responsibly.

Also will you give you preference over other borrowers if funds are limited.

xmodz

Thrugelmir wrote: »

An internal credit rating. As regularly saving demonstrates you ability to manage your money responsibly.

Also will you give you preference over other borrowers if funds are limited.

hi there, thanks for the quick reply

is this a proven fact they will see this as internal credit rating as if it isnt they might not take this into consideration when i go to get a mortgage

and il be wasting my money putting it into their while i could have got better returns

as, i dont mind putting in £50 for nationwide or the £150 for halifax

xmodz

just checked and the nationwide also states account must be held for maximum for three years. i dont know wether i will be buying a house in the next three years defiantly

Thrugelmir

xmodz wrote: »

just checked and the nationwide also states account must be held for maximum for three years. i dont know wether i will be buying a house in the next three years defiantly

Then continue to speculate. When the time is right liquidate your investments into cash.

amcg100

First of all apply for credit cards such as aqua and pay off the balance monthly - this card will also give you 3% cash back on purchases. Gradually build your credit rating by applying for more and more credit cards, and continue to pay off the balance monthly. It is important to judge which card to apply for and when, but as a general rule of thumb, start off with the ones with high interest rates and work your way down to the premier cards with low rates. You can cancel the accounts with higher rates when you are ready. You can build a very strong rating in a couple of years.