Credit score just dropped to poor before mortgage application!

ross9thfc

Recently me and my partner had an offer accepted on a house. We are first time buyers. We was granted a pre mortgage agreement last year and little to my knowledge it only had a 1 month expiry date. We have a meeting in a couple days time with our mortgage advisor about applying for a mortgage. I have recently just checked my credit score out, out of curiosity and seen my credit score had dropped down to the “poor” tier. Looking into it I realised it’s dropped down so drastically because I had got a credit card. Now I am really really worried that this is going to mess up our mortgage application. I have used mortgage calculators and I can still afford to pay of my debts and pay a mortgage. My DTI is 28%. Should I be worried about not being accepted or am I over thinking this?? What is my next step??

DCFC79

ross9thfc said:

Recently me and my partner had an offer accepted on a house. We are first time buyers. We was granted a pre mortgage agreement last year and little to my knowledge it only had a 1 month expiry date. We have a meeting in a couple days time with our mortgage advisor about applying for a mortgage. I have recently just checked my credit score out, out of curiosity and seen my credit score had dropped down to the “poor” tier. Looking into it I realised it’s dropped down so drastically because I had got a credit card. Now I am really really worried that this is going to mess up our mortgage application. I have used mortgage calculators and I can still afford to pay of my debts and pay a mortgage. My DTI is 28%. Should I be worried about not being accepted or am I over thinking this?? What is my next step??

Your score is only seen by you onky, lenders see your history.
Personally I wouldn't have applied for the credit card but thats just me. It could of course have no affect at all.

Willing2Learn

Have you checked your three credit files for data accuracy.  If you have, and everything recorded is accurate, then I would not worry about your 'credit score'.

Your mortgage lender neither see nor uses your 'credit score'.  You mortgage lender will score you against their lending criteria and policies using the data held in your credit files, added to the data you submit in your application, added to the data they may already hold on you as an existing or returning customer.

Edit:  And welcome to the forum ross9thfc 

ross9thfc

Thanks for the reply’s. Will I have to declare to my mortgage advisor what I pay back on my credit card per month?

Willing2Learn

I believe you will be required to declare all your existing debt.

Susan_Boe

The exact same happened to me after I applied for a mortgage!!!! Don't worry. The above posters are correct. I was asked to declare how much I owe but not how much I pay monthly- but that's fine for me as I pay my credit card off in full each month. 

Thrugelmir

What was the purpose of the new credit card. Balance transfer? 

ross9thfc

Money transfer to help with other debts and towards the new house 

EverythingIWant

ross9thfc said:

Money transfer to help with other debts and towards the new house 

I don’t believe you can use a money transfer to contribute towards a deposit, you will get toasted for attempting that? So I believe anyway, money for a deposit needs to be accrued not by borrowing. 

ross9thfc

Sorry I meant for household objects for the house e.g. furniture, appliances