Just got my 1st credit card - How likely am I to get a mortgage in Autumn 2019?

bp5678

I've been saving up for a deposit for a property. I'm likely to be able to afford to buy roughly this time next year. However, I've only just got a credit card.

I've always used a debit card, but always had money in there, never gone into debts and generally never had any problems. The only time I had briefly used a credit card was when I went travelling for 3 weeks in Asia.

As far as my understanding goes regarding credit scores, if I have never used a credit card, rather than starting on 100 (i.e the best), I actually start on 0 (the worst) as I have no history.

I believe many people incorrectly think when they get a credit card, they start on 100 and if they don't pay something back in time, their score goes down. Could I check if this is wrong?

Do you think if I use my credit card religiously from now on, I'll have built up enough credit history to get a mortgage? Since I'm living at home and really trying to cut back on my spending, I probably won't be using my credit card that much. It'll just be for the necessities really i.e things like paying for petrol. I'm not really eating out or buying clothes as I'm trynig to save up so the credit card won't be getting used here.

molerat

Your score is meaningless. Use the card wisely. Spend on anything you would normally use the debit card for, do not exceed the limit and pay off in full every month and you credit history will show your proper management of credit giving you a better chance of getting that mortgage. What limit have you been given ?

M789

I was in your exact same position this time last year. My credit was low because I’d never really used it and no 1 would give me a mortgage for that reason.

I checked my credit score last week and I am now in the good category and just a few points away from excellent credit.

So yes it is achievable! Make sure you pay back early and on time, stay away from payday loans, settle an account during the year. Don’t use more than half of your credit limit & get yourself on the electoral roll.

Good luck, it can be done as I am living proof!!

DD265

My husband also had nothing in the way of credit history. He was able to get a credit card this summer and buys his railcard on it each month then pays it off in full. Although the credit score is ultimately irrelevant, the fact that it's improving is a sign that it's moving in the right direction.

I on the other hand have one credit score as high as it'll go, a second in the high-medium range and a third in the medium range, all based in theory on the same data. Just like lenders each have different criteria so do the credit reference agencies.

As said previously, there are 'tricks' to getting your credit reports in tip top shape for something like a mortgage application. The MSE Credit Club is a good place to start: https://www.moneysavingexpert.com/creditclub

bopsybunny

I got my first credit card pretty much exactly a year ago, and I got approved on a mortgage 2 weeks ago. So simply, yes! Just be sensible with it.

I always paid back more than the minimum monthly repayment, and also stayed below 30% of my credit limit, as I read that using too much of your available credit can make you look irresponsible to mortgage lenders.

I use (and recommend) MSE Credit Club to check my credit rating, and it has never been zero or anything close. It fluctuates around the upper end, even before I had any credit cards/loans/mortgage, and changed only slightly depending on any credit applications or spending. It currently shows me having a perfect credit score (999 on Experian) but it only updates once a month. Now I've had a full credit check from my mortgage lender it will probably have gone down slightly.