Credit Rating and mortgage application

Happydays19

Hi all,

I'm Looking for some advice. Both my husband and I had a lot of credit cards and had missed some payments in June. My credit scoring is very poor my husbands is poor.

We have been extremely lucky and these cards have been paid off. We now have no debt. I am hoping that this will improve our rating as we really need to get another mortgage and move. I just wondered how long this can take and I am now having doubts as to whether it was a good idea to pay off he debt all in one go??

Any advice much appreciated

[Deleted User]

Lenders will view your reduced debt as a good thing.

Any change in your score or rating is something they will neither see nor care about.

Happydays19

Oh ok, that's great thank you. I keep getting told that my rating has to be "good" or more

stator

If you have missed payments that will affect your ability to borrow.
If your credit report is reviewed by a human being they might see all your debts paid off and think you got lucky (lottery, inheritence).
Is your mortgage you only debt at the moment?
If so make sure you pay it on time and your credit report will look better the more time passes.
You might get a small credit card, setup a direct debit to pay it off in full every month and spend a few small amounts on it, things you would have bought anyway. This will show that you can still manage credit responsibly.

Happydays19

Yes our mortgage is our only debt, I am hoping that the Middle of next year having paid the bills on time, things should be better fingers crossed

Thrugelmir

3 year history is extremely important when it comes to mortgages.

Lenders will also be wary when debt is cleared through good fortune. As there's nothing to suggest a fundamental change in money management.

If you have spare cash may be worth overpaying your mortgage. Start with a good discipline for yourselves.