Credit score

Legacy_user

Hi,

Just a quick question.....

I am hoping to get a mortgage soon.....


I have never borrowed money before, never had a credit card.


I'm not totally sure what other things can cause a low credit rating, but I am fairly sure there should not be anything negative against me....

I would guess my score is fairly neutral as I have never had any credit issue, but I have no proof I can pay credit back. Although being savvy with my money and saving a lot of it should prove that I am sensible and careful with money....but I guess that doesn't matter as that won't be part of this 'credit score'.


Basically I am just curious as to where a neutral credit score stands in terms of being able to get a mortgage? Should I be ok?...as long as there are no negatives against me......

or

Should I get a credit card and borrow some money and pay it off in a timely manner just to get my credit score up? Seems ridiculous to do that, but is that recommended?

Thanks

MM64

Hi,

I would take out a 30 day free trial with experian and equifax. Check my own score and act accordingly.

You can cancel 5 minutes after taking it out so they don't take money the following month.

Hopefully you have a good or excellent score and no further action is needed.

The main factor a lender will look at however is affordability, multiples & deposit amount.

Good luck.

Pixie5740

Experian's credit score is meaningless as Experian don't lend money and there's no such thing as a universal credit score.

Lenders look at your credit history to try and establish a pattern of how you handle debt. No credit history means there are no patterns. When applying for credit lenders also look at affordability.

If you're hoping to get a mortgage soon and are a first time buyer I recommend you use a mortgage broker. They will find the best lender for your circumstances which will save you making multiple applications only to be knocked back.

DandelionPatrol

MM64 wrote: »

Hi,

I would take out a 30 day free trial with experian and equifax. Check my own score and act accordingly.

You can cancel 5 minutes after taking it out so they don't take money the following month.

Hopefully you have a good or excellent score and no further action is needed.

The main factor a lender will look at however is affordability, multiples & deposit amount.

Good luck.

The 'score' is totally irrelevant, it is a fiction. Lenders do their own scoring and you would not expect scoring for a mortgage to be anything like scoring for sofa credit.

What matters is whether the information recorded is correct.

dburford9 wrote: »

Basically I am just curious as to where a neutral credit score stands in terms of being able to get a mortgage? Should I be ok?...as long as there are no negatives against me......

or

Should I get a credit card and borrow some money and pay it off in a timely manner just to get my credit score up? Seems ridiculous to do that, but is that recommended?

Thanks

As above, re credit score - you need to be sure that the information is correct. Beyond that, make sure you are on the electoral role. Get a credit card and pay it back each month in full and don't bother getting any sort of a loan, it is a waste of money and if the loan is still outstanding when you apply for the mortgage, the monthly payment will come straight off your affordability.

System

DandelionPatrol wrote: »

As above, re credit score - you need to be sure that the information is correct. Beyond that, make sure you are on the electoral role. Get a credit card and pay it back each month in full and don't bother getting any sort of a loan, it is a waste of money and if the loan is still outstanding when you apply for the mortgage, the monthly payment will come straight off your affordability.

Cheers.

- I'm on the electoral roll.

- Apparently living at the same address, working at the same company, and staying with the same bank for a long time can help. Which should be fine for me. same address 3 years, same bank for 17 years, same workplace for 3 years.

- Would paying direct debits on-time also help? I have a few direct debits to charities.


I will check my credit score.....So which credit reference agency is best to check with out of: Experian, Equifax and Callcredit ?

DandelionPatrol

dburford9 wrote: »

- Would paying direct debits on-time also help? I have a few direct debits to charities.

I will check my credit score.....So which credit reference agency is best to check with out of: Experian, Equifax and Callcredit ?

As charities are for giving to, this should not count as credit and should not appear, although now you have mentioned it, the Sheldrake effect may kick in and your charity DD's may be reported, which would be a bad development. DD's will only appear for credit accounts, which may include utilities.

Check your credit records with all 3 agencies. It is a waste of money to check out your credit scores with any of them. Please don't make the mistake of buying credit scores and not bothering about seeing your credit record.