Can anyone explain credit records to me please?! And is an empty record good or bad?!

florence4

I'm applying for mortgages for the first time in 22 years, so I'm getting my head around various bits of new info, including credit records. Last night, mostly out of curiosity really, I followed some links from this site and got free credit info about myself from Experian and Equifax...

It didn't really tell me much...

The Equifax report was full of empty sections - it shows I'm on the electoral roll and there are no court judgements against me, but that's about it.

The Experian report was even less informative, though it did promise me a PIN within 5 days that will let me access more info. It told me my score was 'good', but not 'excellent'.

I'm just wondering whether it all actually means anything significant, and whether having nothing much in my record is a good thing or a bad thing, when it comes to getting a mortgage?!

I have had very little credit and debt in my life, compared to most people. I took out a mortgage 22 years ago, which I paid off early about 6-8 years ago. I have no other debt. I had past debts, but they were all paid according to repayment schedules. The only possible 'blot' in my whole life, I think, is that I was part of the anti-poll tax movement 20+ years ago, and refused to pay my poll tax as a protest, until the council took me to court. I'm clearly very low risk as a borrower.

On the other hand, I realise lenders are really more interested in profit than risk. I've avoided credit for the past 6-8 years, cleared off loans deliberately and not had store cards. I've only used my Visa card very occasionally, and not at all for about 3 years. Is that likely to count against me? Is that why my score is 'good' but not 'excellent', and will that matter?

Also, a minor point - the Experian report show a 'Mr T Smith' linked to me as a 'financial associate' in September 1995 - which is not a name I know. Is it worth doing anything about that?

I almost wish I hadn't looked... It seems daft to fill my head with info I don't really understand! Should I just relax and feel confident my mortgage applications will be fine...?!

Gary123456790

It isnt a massive issue having little credit history, but your bank accounts should show on the report?

Is your Visa card still valid? If so this should show up on the report too.

You should definitely report that you do not know the Mr T Smith - if they have credit issues it could affect you. If nothing else you can put a note on your credit file stating you do not know then (cant remember what this is called, someone will tell us shortly im sure!).

I dont think it will affect you not having recent credit if everything else stacks up, e.g. income, valuation, etc.

Nothing there should concern you other than the Mr Smith.

Gary.

ACG

Forget how credit reports score you. Its a load of rubbish and gives an indication at best. Lenders do their own scoring, i have seen excellent people get declined and poor people get accepted so just forget it.

Having no credit at all isnt going to help your credit score, but if your bank accounts show a positive balance and your not living from hand to mouth there shouldnt be any reason why you cant get a mortgage.

rochja

I assume you mean you are applying for a mortgage. Applying for multiple mortgages to pick the best offer is a BAD idea. You can get all the help and advice you need from the money advice service. Their website even delivers advice via online chat sessions

ValHaller

ACG wrote: »

Forget how credit reports score you. Its a load of rubbish and gives an indication at best. Lenders do their own scoring, i have seen excellent people get declined and poor people get accepted so just forget it.

Having no credit at all isnt going to help your credit score, but if your bank accounts show a positive balance and your not living from hand to mouth there shouldnt be any reason why you cant get a mortgage.

Exactly the above.

Remember that lenders all do their own scoring according to the needs of their business. So a mortgage lender will score very differently from consumer credit lenders. And I expect that the Experian so-called 'credit score' will be biassed towards consumer credit.

Form my armchair, I would say that you match the profile which lenders require for a mortgage. You poll tax adventure will not figure in the decision because they will not know about it - unless you tell them. But do deal with this Mr T Smith on your record before you actually apply.

florence4

Thanks everyone

Gary, yes I have a bank account, valid Visa card, savings accounts and ISA - none of them showing up last night... Perhaps it takes a while from registration for all the computer systems to share their info?

ACG, yes, all my balances are healthy. I haven't been over-drawn for about a decade.

rochja, I'm looking for two different products - BTL and residential.

I've just got myself a broker, so can talk to him about this now...

florence4

Thanks VanHaller (I failed to refresh from this morning, so have just seen your post)... That's good to know. I am realising that I am probably a good bet for lenders, not least because I am only looking for 65% mortgage (max.)