How to improve credit

eden1969

We arre buying a property that won't be built til next October.
I want to do as much as I can to make sure our credit record is at its optimum.
When checked my partners bank has put a couple Codes of AR on my partners credit card what does that mean? How long does that stay on credit file?

We need to save as much as we can forr deposit and decor but will it make a huge difference to pay off credit cards?

I am assming the better the creedit the better the interest rate orr is that purely based on deposit and loan needed

So my question is we have a year so what should we focus on doing in this time?

LeeSouthEast

I assume you're talking Call Credit, as I think the other two use 'AP' but 'AR' means ARrangement to pay. Basically, your partner had to come to an arrangement over how to pay it, because they couldn't keep up with it as it was. It will stay on the credit report until 6 years after the account is closed/paid off.

It will make a difference to pay off your credit cards; some mortgage lenders will insist this is done before agreeing a mortgage anyway, or will reduce the amount they will lend you accordingly.

I am not a mortgage advisor (there are some on here who may find your thread) but my understanding is while your credit report will have an impact on acceptance, your actual mortgage rate is based on which product you apply for and whether you meet the funding and LTV criteria for it.

Your biggest problem will be that AR marker. It'll be a bombshell for any joint lending and you need to find out what it is for, if it is right, and so on.

You can find all the different 'codes' that Call Credit use here:
http://www.callcredit.co.uk/media/53069/ycfev5.1.pdf

(Page 8)

eden1969

Weird thing is he has this ar code on april andmay 2011
And april may 2012 on a credit card he has a direct debit taken out monthly and sometimes we make extra payments have even paid balancce off beforre this was with a balance of over 6k and card has limit of 10k.

I do rememberr one time we switched banks and when we decided to switch back to clydesdale all of the direect debits were supposed to be automatic. We tried to use the crredit card and it didnt work. When we ccalled clydesdale it hadnt been paid orr transferred over which wasn't our fault. The thing I rreally dont understand is why it is on the reporrt the same two months 2 years in a row.

I am going to write a letterr to the bank and see how it goes what do you think orr do I contact equifax?

Also is the interest rate you get based on yourr credit historry?