Advice Needed - Limited Credit History

CG123

Hello,

Bit of advice needed, and I really don't know where to find answers

Myself and my brother are looking to purchase our first home (in the next 6 months or so) with a joint mortgage. We both have 'good' credit scores, but with slightly different histories.

I have 3 credit cards (with a low amount of available credit used). I actually only use one of these cards - Do I keep all 3 open?!

The main question is regarding my brother. Apart from a phone contract, he hasn't really got any credit history. No credit cards etc. So although he has a 'good' score, will potential lenders see his lack of credit as a bad enough point to scupper a mortgage?

He could apply for a credit card, but with us hoping to get a mortgage in the next 6 months (ish) he wouldn't really have time to build up enough history of repayments - and the credit search for the card in the first place would obviously show on his file (he doesn't have any other searches at present).

Or would getting a credit card be ok? I suppose the question is will the negativity of a credit card application, mean that it isn't worth getting one, keeping in mind that we would look for a mortgage sooner rather than later?

Thanks in advance for anyone who may have any advice!

[Deleted User]

As you suspect, the credit scores are worthless. A credit card d would be a great first step in establishing some kind of history, though you have left it late.

When you come to apply for a mortgage, I'd definitely use a broker to help overcome your thin credit files.

DCFC79

Could the 6 months be extended so he can have more time to improve his credit file ?

CG123

Thanks so much for the replies so far.

Interesting that you recommend a broker. I was thinking of going this route also, as I am self employed so figured I may fare better with a broker than a high street lender.

As for waiting longer than 6 months - I suppose the answer is yes we could, if the wait would be of benefit to us. We could wait longer but wouldn't want to wait too long. It comes down to how much we would benefit (if any) by waiting.

Thanks again

Candyapple

One credit card search and a new account added at this point wouldn't make that much of a difference, however I agree with others that you have left it late.

Has he checked all 3 of his credit files to see what shows up?

Does he have a bank account? Does this show up as well as the phone contract on all 3?

Has he ever had any credit cards/loans/car finance etc. in the past?

Are you both on the electoral roll / is this showing on all 3?

CG123

Thanks Candyapple,

So far we only have our experian credit reports, so it is on my to do list to get the other 2 and see what they say.

He has bank accounts (2 current accounts) - and I have 6-7 current accounts. and yes, these show up on his report. It was just the lack of credit, as none of his accounts have an overdraft (he chose not to have one).

he has never had credit card / car finance or loans

we are both on electoral roll.

I am starting to think now that maybe get a credit card, and hold off on mortgage application till at least 6 months... why does it have to be so complicated?! it will be interesting to check our other reports and see what they say. As zx81 suggested, a broker may be the way to go.

Thanks again for responses - anyone else feel free to chip in

Thanks again

CG123

Anybody else have any more advice?

Has anyone ever been in a similar situation?

Thanks

john2054

One card application shouldn't damage your score too much. Make sure you go for a company which will accept him however, such as capital one of vanquis or marbles, all of which offer pre eligibilty checks.