New mobile contract before mortgage application - will it affect credit score?

jhnry

Hi everyone,

In the next month or two I am applying for my first mortgage and have been preparing leading up to this year by clearing my debts, culling unused credit/bank accounts etc.

My 2 year phone contract ends next week however and I'd like to switch to a sim-only money saving deal straight away. The deal I'm interested in is a 12 month contract, which involves a credit search to get.

My question is will this search for a new mobile contract impact negatively on my credit score for my upcoming mortgage application? I could switch to pay as you go for the time being and then get a new mobile contract after the mortgage, however there are some pretty good money saving deals what with it being Christmas/New Year that I'm not sure will be around for long.

To give myself the best chance with my mortgage should I wait a bit?

Any advice greatly appreciated!
J

ThePants999

You don't have a "credit score". The one you can see via credit reference agencies is a number they make up that only you can see. You have a credit file/history, and different financial institutions will apply different policies/priorities when looking at it in order to judge how much of a risk you are.

If your history shows
- had a credit agreement with Vodafone for mobile services, now ended
- had a credit search by EE
- entered a new credit agreement with EE for mobile services
then I doubt many lenders are going to look at that and think "whoa, high risk here!" :-)

jhnry

Great, thanks ThePants999 didn't think of it that way!

J

xyz123

ThePants999 wrote: »

You don't have a "credit score". The one you can see via credit reference agencies is a number they make up that only you can see. You have a credit file/history, and different financial institutions will apply different policies/priorities when looking at it in order to judge how much of a risk you are.

If your history shows
- had a credit agreement with Vodafone for mobile services, now ended
- had a credit search by EE
- entered a new credit agreement with EE for mobile services
then I doubt many lenders are going to look at that and think "whoa, high risk here!" :-)

Thanks. Just out of interest, does credit report shoe that the Vodafone contract is ENDED.

AnotherJoe

xyz123 wrote: »

Thanks. Just out of interest, does credit report show that the Vodafone contract is ENDED.

If it didn't, then your credit report would show you as still running every single loan and credit agreement you ever took out. :eek:

Whistler23

Just a heads-up, I ended a Vodafone contract in May and moved to EE. Vodafone didn't close the account and it was me asking the Vodafone Rep on this forum a couple of months ago that it got updated to closed.

So keep an eye on your report.

jhnry

Whistler23 wrote: »

Just a heads-up, I ended a Vodafone contract in May and moved to EE. Vodafone didn't close the account and it was me asking the Vodafone Rep on this forum a couple of months ago that it got updated to closed.

So keep an eye on your report.

Thanks for the heads up - will keep my eyes peeled. PAC code obtained from Vodafone and SIM ordered for new contract.

J

lauren_hb

Would this work similarly for car insurance?
Mines up in March, around the time we'll be looking for a mortgage.
Always paid my car insurance in one lump sum and have noticed in past lenders have done searches on my credit file.

jhnry

lauren_hb wrote: »

Would this work similarly for car insurance?
Mines up in March, around the time we'll be looking for a mortgage.
Always paid my car insurance in one lump sum and have noticed in past lenders have done searches on my credit file.

Following ThePants999's logic above it should be fine I imagine. I'm sure mortgage lenders realise the necessity of car insurance for most people.

J

jhnry

Got my mortgage approved, no problems :cool2:

cycloneuk

Whistler23 wrote: »

Just a heads-up, I ended a Vodafone contract in May and moved to EE. Vodafone didn't close the account and it was me asking the Vodafone Rep on this forum a couple of months ago that it got updated to closed.

So keep an eye on your report.

I have the same problem, moved away a few years ago and it still shows open and updates every month.