Credit Rating Advice

davidh30

Hi all,

New to this form and seeking some advice. I'm looking to get on the property ladder next year, and as such am saving towards a deposit and trying to get my credit file in order to secure the best mortgage deals.

My question is; I have 3 arrears showing on my credit file from credit cards back in 2009. The last one being September 2009, so in theory these will all drop off by September 2015. Will these play a major part in the success of a mortgage application, and as such should I wait until September onwards?

Also, I have moved 3 times within the last 3 years - but always registered on the electoral roll, and updated all my creditors. Will this, combined with the fact that I have been in my new job role for under 6 months adversely affect my application success?

Thanks in advance,

David

Tixy

Hi

When you say arrears do you mean a missed payment marker for an odd month- not a defaulted account?

If it is just some one off (or 3off) missed payments then it is unlikely to have much impact on your ability to get credit even if they are still showing on your file as having happened 5+ years ago.

If they are defaulted accounts then they are more likely to have a significant impact and ideally it would be best to wait until they have dropped off your file.

Your changes of address shouldn't cause a major issue, people who rent do move fairly frequently.

The short time in your job is something a lender will take in to consideration - how much emphasis individual lenders would put on this is likely to vary. Will it be over 6months by the time you will be looking for a mortgage?

davidh30

Hi Tixy,

Thanks for your reply. They are noted as missed payments, one in April on a Natwest card, and on two consecutive months in August and September 2009 with Barclaycard. The September occurence was due to my direct debit being set to £50, but with the charge incurred from the previous months arrears the minimum payment was more than that - so this was marked as a missed payment. Following this, I have always met my payments on time.

Thanks for your replies on my other points

Experian_company_representative

Hi Davidh30,

As they were late payments and not defaulted accounts from 5 years ago, they should have little impact on an application for a mortgage.

The payment history on active accounts can go back over six years, so it's possible that they will still be recorded on your report in 2015, but by this point they would not be of concern to most lenders.

Kind Regards
Neil

davidh30

Thanks Neil - that's good to know! Cheers