Credit card cash advance preventing mortgage approval?

Sandgrownun

Hi asking for my partner. He thought he had a good credit score, Equifax said excellent, some debt e.g. credit card and loan but not excessive. He is wanting to buy a 130k home and putting down 20k at least. Natwest appeared the best deal, so our broker applied and it came back a refusal due to 'adverse credit'. We though there'd been some kind of mistake on his credit file, however when we checked his credit report I saw that the buffoon has been randomly drawing money from his credit card, stupid small amounts like £20 most months. He thought it would all help to show borrowing and paying back!!

Is this the reason he was refused? Could this be seen as adverse credit? And what are the chances of getting accepted elsewhere or will it be a blanket no?

glosoli

In absence of any real adverse credit, i.e late/missed payments, defaults, CCJ's, and assuming he has a stable address history and on the electoral register, then that will probably be it. I guess taking cash advances from a credit card frequently may be akin to a payday loan, i.e it shows a dependence on credit to get by month on month. However it shouldn't prevent him getting a mortgage at all.

Sandgrownun

Ok thank you. So perhaps while Natwest said no, if the broker is more selective about who he applies to then there's a chance he'll get accepted elsewhere?

Narkynewt

Halifax are a lot more relaxed.

glosoli

Sandgrownun wrote: »

Ok thank you. So perhaps while Natwest said no, if the broker is more selective about who he applies to then there's a chance he'll get accepted elsewhere?

Yes exactly - every single lender has their own policies.

amnblog

Has only one credit file been checked? All three should be checked as data can differ.

csgohan4

your partner should be sign posted to the section on here for credit scoring and what it means


http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Narkynewt

Get him to check noddle, equifax and experian

Sandgrownun

Thank you will do. Starting to feel a bit pessimistic now!

Thrugelmir

Sandgrownun wrote: »

some debt e.g. credit card and loan but not excessive.

What do you regard as not excessive. Lenders hold a different view to borrowers when it comes to debt.

Sandgrownun

Thrugelmir wrote: »

What do you regard as not excessive. Lenders hold a different view to borrowers when it comes to debt.

Hiya 900 on the overdraft, 3k limit and about 1400 on credit card, 3k limit. Both will be repayed before completion.