Confused about credit report, and want to apply for a mortgage.

Gaz84

Hi, I apologise if I'm repeating what others have asked.

7 years ago,i lost my job, fell on hard times, defaulted on some credit. Now, at the time I settled those for a fraction of the amount. Since then, I found a great new job. And everything I have ever owned has been purchased outright in cash, Everything is paid off annually (car insurance etc) Thinking I was being responsible and saving money. I didn't take out a single bit of credit in the last 6 years. I was too scared in case I got rejected. Not that I ever needed it. I am looking at purchasing a house late next year. I understand credit score doesn't mean much but mines is low. 262. Clearscore tells me I have a thin file. I have no defaults that I can see or CCJS, just two late payments for something which should have been paid when I was on holiday, my mistake. I have applied and been accepted for one of those vanquis credit cards as clearscore was telling me it was a the only negative. My score is coming u as stable. What do I need to do to increase my chances of acquiring a mortgage over the next 12 months if anything? Am I going about it the right way? My only debt is my student loan which is taken out of my wages and a £11 bill from Vodaphone I was unaware of.

Thank you

Thrugelmir

Suggest you speak to a mortgage broker and let them review your credit history.

Candyapple

Gaz84 wrote: »

My only debt is my student loan which is taken out of my wages and a £11 bill from Vodaphone I was unaware of.

What do you mean you was unaware of? Is this a defaulted account?

What are the 2 late payments for - a credit card?

You should set up a direct debit immediately if so to prevent yourself getting in that situation again. The 2 late payment markers so fresh could possibly cause you a lot of problems obtaining a mortgage. https://www.theguardian.com/money/2012/feb/17/o2-debt-mortgage-application

Don't forget that there are 3 credit reference agencies so you will need to check with all 3 of them to see what information they have on you.

Call Credit (Noddle is their free version)
Equifax (ClearScore is their free version)
Experian (pay £2 only to get a copy of your report) http://www.experian.co.uk/consumer/statutory-report.html

Is your bank account showing across all 3?

With regards to your Vanquis card use it to make small purchases each month, SET UP A DIRECT DEBIT TO CLEAR THE FULL BALANCE and rinse and repeat for at least 1 year.

Joy_mate

What's gone is gone. Don't stress by past. You have a lot time still.
1. Try to avoid pay day loans To prevent bad impression on credit files.
2. Use credit card regularly, and pay off on due with out fail.(set up direct debit)
3. Vote registration if u r not.
4. Direct debit may increase credit score at minimal extent.
After all it's your affordibility to get mortgage, so don't stress and keep on saving money, earning more.
TRY TO KEEP YOUR FINANCIAL MATTERS CLEAR. (Input and output)
Best wishes.

Gaz84

Thank you for your replies. I was with vodaphone on a pay monthly contract. But I switched to three due to their inclusive abroad data plan. I switched, paid the outstanding balance and closed my account. So I will be ringing them shortly to pay the 11 quid and be done. The late payments I'm not sure what they are for, but they are from 2012 I think from my bank, whom I have zero overdraft and zero debt with. The vodaphone bill does not say default or anything, it comes under short term debt. Thankfully I am in a much better place financially, I have never taken a payday loan ever, I have taken zero credit for the last 6 or so years.

Gaz84

I don't even really want a credit card if I'm honest. But if I need to use one to build a good credit history so be it.

DRMANTISTOBOGGAN

You're credit score doesn't mean a thing, don't worry about it.
I have a similar credit score on clear score and received my mortgage offer today, that's with a default from 2014. If you're history is clear of anything adverse as you've suggested you shouldn't have credit worthiness issues, be careful of applying for too many of those credit builder cards though - they have their place but as far as mortgages go it isn't them.

Gaz84

Thanks for your reply. I am far far farr more responsible now. I will only use the card for fuel. The question I would like to ask is, Is it better to pay my bill weekly or monthly?

Gaz84

Spoke to voda, apparently the 11 quid was paid when I closed the account. Grrr

[Deleted User]

Gaz84 wrote: »

The question I would like to ask is, Is it better to pay my bill weekly or monthly?

Neither. Pay it (in full) by the due date on each statement.