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Is a credit card necessary for a mortgage?

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Hello,

I am right at the very beginning of my house buying journey, my partner and I know absolutely nothing about the process so are trying to educate ourselves a bit before we get the ball rolling.

I had 100s of questions really, but the first thing confusing me is regarding credit cards and mortgages. Both my partner and I have excellent credit scores on MSE credit club (999/984 respectively) although I realise this is only for Experian, have not checked the others yet.

My partner has a credit card which we took out to use abroad and that is the only time we really use it, although we are happy to start using this and paying off each month if this will look positive for a mortgage provider.

My question is, I don't have a credit card - is it necessary for me to also get one? I will do so if necessary but would prefer not to as when we move we own no furniture or anything so will need to make lots of large purchases and I was hoping to look at taking one out then with a long 0% interest period. Would taking out a cashback credit card now, followed by a mortgage potentially jeopardise the chances of then getting the 0% credit card once we have bought a house?

I understand they want to see I can pay back credit. The only things currently on my credit report are my mobile contract and bank account with overdraft (which i never use). I am going to look at joining the Rental Exchange Initiative to get our rental payments taken into account, which I hope might help.

Ideal scenario would be that I don't need a credit card, so I am just wondering if its likely or not that a mortgage provider will consider us if I don't have one?

Thanks

Comments

  • Your credit score means nothing.

    Go through ALL your credit history reports and see what is listed. Are there any defaults, late payments, agreement to pay?

    MSE credit club
    Noddle
    Clearscore

    Are free to sign up to and check.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • SarahLu
    SarahLu Posts: 127 Forumite
    Tenth Anniversary 100 Posts Name Dropper Combo Breaker
    Your credit score means nothing.

    Go through ALL your credit history reports and see what is listed. Are there any defaults, late payments, agreement to pay?

    MSE credit club
    Noddle
    Clearscore

    Are free to sign up to and check.

    Thanks, I will go through and check them, although I know there are no late payments or defaults on anything, ever.

    What about the credit card, do you think it is necessary?
  • Verix
    Verix Posts: 241 Forumite
    Sixth Anniversary 100 Posts Combo Breaker
    A credit card is definitely not essential. If you have never had any credit previously it is often advisable, but if you're less than 6 months away from putting a mortgage application in I personally don't think it's worth it.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • SarahLu
    SarahLu Posts: 127 Forumite
    Tenth Anniversary 100 Posts Name Dropper Combo Breaker
    Verix wrote: »
    A credit card is definitely not essential. If you have never had any credit previously it is often advisable, but if you're less than 6 months away from putting a mortgage application in I personally don't think it's worth it.

    Thanks for giving your opinion. We are perhaps 6-12 months away from applying but if its not essential then I am tempted to leave it. I think my partner is more important anyway as he earns more, plus I am self employed so I think they will be more interested in him and he does have a cc, so hopefully it will be ok.

    Thanks again
  • ACG
    ACG Posts: 24,558 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Generally speaking, most people will have some form of credit history by the time they are ready to buy a home.

    A bank account - even without an overdraft.
    A mobile phone on contract.
    A next/very catalogue etc.

    You do not need a credit card at all, if you are 12 months away, there is no harm in applying and using it/clearing it but assuming you have some form of credit and you do not want a credit card, I would not worry too much.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • SarahLu
    SarahLu Posts: 127 Forumite
    Tenth Anniversary 100 Posts Name Dropper Combo Breaker
    ACG wrote: »
    Generally speaking, most people will have some form of credit history by the time they are ready to buy a home.

    A bank account - even without an overdraft.
    A mobile phone on contract.
    A next/very catalogue etc.

    You do not need a credit card at all, if you are 12 months away, there is no harm in applying and using it/clearing it but assuming you have some form of credit and you do not want a credit card, I would not worry too much.

    Thank you. No catalogues or anything, but I do have a long history with my bank and over 10 year mobile phone contract so I feel reassured :)
  • Trina90
    Trina90 Posts: 541 Forumite
    Eighth Anniversary 500 Posts Name Dropper
    Neither of us had ever had a credit card when we took out our mortgage on our first home 4 years ago.
    Mortgage started 2015: £150,000 2016: £130,000 2017: £116,000 2018: £105,000 2019: £88,000 2020: £69,000 2021: £51,195 2023: MORTGAGE FREE!
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If you've had three jobs and four addresses in the last three years, need 95% and are borrowing at the top of your affordability, anything positive you can do would be helpful.

    Ideally, you need to get a card nine to twelve months before an application to reduce the negative of the search and have as much positive repayment data as possible.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • SarahLu
    SarahLu Posts: 127 Forumite
    Tenth Anniversary 100 Posts Name Dropper Combo Breaker
    kingstreet wrote: »
    If you've had three jobs and four addresses in the last three years, need 95% and are borrowing at the top of your affordability, anything positive you can do would be helpful.

    .

    That won't be the case fortunately
  • Agree with others... I definitely wouldn't want any credit applications on file in the 6 months prior to applying for a mortgage. That would count AGAINST your score instead of improving it.
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