Just checked my Credit Score/Rating....

Legacy_user

Firstly I am soon after a mortgage as a first time buyer.......

Just checked my credit rating with Experian:

Credit score 999 out of 999.

Can't really improve that.


Though I didn't expect it to be that high....

I have never taken out credit so there is nothing to say I can pay back credit responsibly (although I know I am capable of doing so).

It would be easy for lenders to view how responsible I am with money through the amount of savings I have accumulated, and the fact I don't spend lavishly like going out to get loans for fancy cars. And also through the fact that my rent has always been paid on time.


This Experian credit report looks accurate, no errors....


If we base the credit rating/report from Experian on my chances of getting credit I'm all set - right?


The point I am getting at is - although my report is clean and my score is as high as it can be - will a mortgage lender still like to see that I have had loans in the past and paid them off correctly?

Should I still consider getting a Credit Card for a few months?

or need I not worry about that?

Ideally I'd rather avoid the hassle of taking out a credit card and the risk of me messing up and missing a payment.


Cheers.

[Deleted User]

Unfortunately, this demonstrates why the credit score is meaningless. Lenders will see you as high risk as you have no evidence of previous credit.

A credit card is the best easy of building a solid history. It's also good practice for making monthly payments on a mortgage for 25 years.

System

I don't get any of this....

So Credit Scores are meaningless.....Credit reports also it seems.....

Paying rent on time is paying due money on time, and rent is a lot of ££ - as much as - if not more than what a mortgage would cost where I am renting in the UK - which is supposedly the most expensive place to rent outside of London.


You would think that logic and common sense would mean that a lender looking at my rental payments + savings history shows that I can more than easily responsibly pay off a mortgage.....


But instead they want to see some regular Credit Card Payments of £30 for petrol being paid off every month when I clearly do not need to borrow £30. I have £££££££'s in my bank. I really don't need to faff about borrowing £30. If that's the way it is I'll do it.

So these credit card payments are the ones that prove I am suitable to lend to??


The whole thing is ridiculous.

[Deleted User]

Credit scores are ridiculous. Credit reports are not.

Managing a credit agreement shows you can handle borrowing money and paying it back. Many people cannot. Though most think they can

Lenders cannot see the history of your rent payments, your savings or the tennner you paid back your mate Bob on time. So they prove nothing.

A couple of years of Credit card use -paying in full each month so you pay no interest ,- will give you a much better chance of getting further borrowing such as a mortgage.

System

Cheers for your feedback....

I thought that lenders look at bank statements to see your rental payments and thought that they may even contact the landlord to get them to confirm they received the rent on time?

I would like to hear others input about whether I will actually need some credit history?

I just did a quick browse over other past threads which talked about people being rejected for having no credit history....

Most of the advice was to find a broker and they would find someone willing to lend. Also people seemed to suggest if the Loan to value was low then credit history is less of an issue. My loan to value will be around 65%.

Just to clarify. I have not applied for a mortgage. I am preparing to sometime this year. Just getting my finances is check and making sure I am good to go to apply for a mortgage.


It will probably be best that I just get a credit card. But any advice as to whether this is essential / give me a much better chance of getting a mortgage then that would be great.....and if so - how much a month do you guys recommend borrowing from the credit card each month? I have heard that the higher the better, but does anyone recommend an amount that would be sufficient to satisfy a lender?


I'm not sure if these mean much but I'll note them down. On my Experian report I have zero 'negative score factors' against me and 4 'positive score factors, these are:

1. My credit accounts (bank accounts) are 77 months old.

2. I have no mortgage to pay.

3. I am using 3x non-mortgage credit accounts.

4. You have not made any credit applications in the past 6 months.

I guess they don't mean anything if the credit score means nothing.

Thanks..

Superscrooge

Having some credit history will definitely help.

As an example. Imagine I wanted to borrow some money from you.
If you knew that I had borrowed money on many previous occasions and always paid it back. You would be more likely to lend me money, than if there was no record of me ever borrowing money before.

You don't need to borrow a specific amount on a credit card each month. I would just arrange a direct debit to always pay the balance in full so that you never pay any interest and use it every month. . Then you will soon build up a credit history.