Address Issues - my flat doesn't exist...

melissa740

Hello

I'm trying to prepare myself to apply for a mortgage in a few months. I currently have about £6k on credit cards (which I will reduce over the coming months), with about ) £15k available. I never pay late and generally pay a set amount higher than the minimum but not the maximum. I've shuffled cards so I don't pay any interest. I closed an credit account recently as I'd paid it off and the rates weren't good, however apparently as I'd had that account the longest (10 years) I've probably not helped myself. The other accounts I've held for about 3-5 years. Only 2 credit cards have balances and 2 are open but at £0.

I ran my credit score yesterday with experian and Equifax - i score low with both and I was baffled. I thought at first the issue could be closing the old virgin credit card. But surely that couldn't do such extensive damage? I've had no credit searches since October 2015 when I took out a new mobile phone contract.

However could the issue be my address? I live in a typical London Victoria conversion. My address should be 'Flat C, 33...' However Flat C is rarely an option in drop down lists. It WAS an option when I put myself of the electoral roll, so for voting purposes I live in Flat C, 33 For credit cards it's often just 33. Could this damage my score? And then the question is what do I actually do?! Should I change my registration on the electoral roll to just 33 (removing flat C altogether) which then messes with my list of addresses, or do I call all the credit cards to see if they can manually amend my address? (Apparently they won't always - I had this as a big issue with the new mobile phone contract recently)

If this is the cause I will be royally annoyed at losing a mortgage offer! I can't see what else I could possibly do to improve the score? Close more credit accounts? I have an unused Next Directory account, close that? It's so confusing. I'm supposed to have lots of available credit but not too much, use cards and not pay in full but not be in unmanageable debt. The whole thing is an complex web of unworkable oxymorons!

Thanks for reading my novel and any help much appreciated!!

Melissa

HappyMJ

You do not need to be on the electoral roll to get credit so don't worry about that.

As long as you've paid your debts on time for the past 6 years then despite whatever made up score you have then you have excellent credit.

You'll need a deposit to buy a house and you should not have any outstanding debt (debt that carries over each month) when you apply for a mortgage. You can have debt but the monthly payments will affect how much you can borrow so it's best to clear as much as you can before you apply.

I score low as well but I've said it before and I'll say again. Noddle does not know how much I earn, Noddle doesn't know if I'm a home owner, Noddle doesn't know how much cash I have in the bank. As you can see by my signature I borrow at low rates and save at high rates earning money for nothing. I can only do that with a good credit rating...so why is my "score" 556 and "Very Poor"? It's because it's made up assuming far too much to guess at something. I am not on the electoral roll. Never have been.

[Deleted User]

melissa740 wrote: »

I'm supposed to have lots of available credit but not too much, use cards and not pay in full but not be in unmanageable debt

You're partly right. But always pay in full, unless you have 0% offers.

melissa740

Thank you - this sets my mind at ease a bit. The 'flat c' thing has been an absolute pain!

I expect I score low because I'm quite a savvy customer then - I have a handful of low-rate cards and my only debt is all interest free. I use an interest free purchases card for day to day stuff and repay. So I guess I'm not attractive for money making!

I do hope that it won't cause a problem with the mortgage though as I've read on this site that a low score means an instant rejection.

We have almost 20% deposit though so hopefully that may help.

Thanks again!!

[Deleted User]

melissa740 wrote: »

I do hope that it won't cause a problem with the mortgage though as I've read on this site that a low score means an instant rejection.

No lender ever sees your score - it's a complete fabrication. Lenders only look at the data on your file. So no need to worry on that score.