Payday loans advice - help!!

DCFC79

lisajane12345 wrote: »

I have started seeing this no such thing as a credit rating comment on this site a few times since I've started using it today - is this just meaning there is no such thing as a credit rating based on the fact the credit scores are just determined by the CRA's and each lender has its own lending policies/criteria/checks etc. which technically renders the credit scores we see on noddle/experian etc irrelevant. Or is this meaning something else? Thanks

Yes its exactly that, the score is just how the ref agencies see your credit history but without knowing what you earn its pointless.

Just focus on living on living within your means, save as much as you can.

On_my_way

I think most mortgage lenders say that an applicant must not have had a payday loan in at least 12 months to be accepted.

It is fortunate that he doesn't have any defaults as it is defaults which really cause the damage.

I'm not a mortgage adviser but I would encourage you to both to join a save to buy scheme now and seriously keep a good eye on your spending and save as much as you can to prove that you can do it.

lisajane12345

Apples2 wrote: »

Yes, that's right. Those companies peddling out these scores do not even know you salary or if you have any income at all.
Lenders absolutely care about these matters.

Your credit file is visible for 6 years so all accounts should be on there. Not all report though, and there are three agencies which don't necessarily match up.

You can't simply remove the things you don't like. It is a record of borrowing and the handling of your debt.

I have read some Mortgage lenders won't lend if there are PDL entries within the last 6 months so it may not be all bad.

What do you mean "no defaults in 3 years?". They will conspire against your application if you have defaults.

By defaults im referring to missed payments, prior to 2012 there are a total of 4 seperate missed payments with mobile phone companies, these defaults were all upto month default. As far as I was aware only defaults within the last 12 months are mainly taken into account during a mortgage application, and any outside of this are ofcourse taken into account but dont hinder an application as much? Or is this completely wrong? Thanks

Gaz83

Each lender has their own acceptability criteria, and these criteria aren't made public.

dealer_wins

Buying a house within your joint income budget, with a nice 25% deposit, and good stable employment should mean a mortgage application will sail through underwriting.

redpete

A low credit rating from a CRA probably does give a reasonable idea that a lender will consider you a bad risk - the negative things a CRA takes into account are likely to be in line with the negatives a lender will take into account. A high score is not a very useful indicator because a lender will look at things that the CRA doesn't see at all.

lisajane12345

dealer_wins wrote: »

Buying a house within your joint income budget, with a nice 25% deposit, and good stable employment should mean a mortgage application will sail through underwriting.

Ah if only... 25% deposit... I wish! more likely to be around 10%

[Deleted User]

MariusJuvet wrote: »

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somethingcorporate

Deleted_User wrote: »

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AndyT678

lisajane12345 wrote: »

By defaults im referring to missed payments, prior to 2012 there are a total of 4 seperate missed payments with mobile phone companies, these defaults were all upto month default. As far as I was aware only defaults within the last 12 months are mainly taken into account during a mortgage application, and any outside of this are ofcourse taken into account but dont hinder an application as much? Or is this completely wrong? Thanks

The mortgage advisors on the Mortgages board will probably be able to give you an indication of how serious your pdl history and defaults are.

As previously said, every lender has different criteria and the guys who deal with them day in and day out know where the best chance of success lies.