Credit Rating Score

adrianwarhol

Hello I am hoping to get on the housing ladder at some point and hopefully secure a mortgage with my bank Barclays. Currently my score on Experian is 651 which is poor. I think this is due to me having three credit cards and a consolidation loan in process.

Does anyone know what sort of credit rating score I will need to secure a mortgage? 

TimSynths

none- no mortgage lender in the UK uses them. They are a made up fantasy number, what they look at is your credit history and affordability. You may need a broker that specialises in poor credit.

collins74

The score is not used by the lender but they do offer you an indicator of your position. 

Having three cards and a personal loan for consolidation may not be a problem so there may be another reason the credit company are scoring it lower.  How have you managed your credit, how long at your bank and address and how much of your credit card balances are utilised.  Multiple recent searches don’t help either. 

Would it be worth you working to improve your credit record and defer the house for now so you may get a better deal. It’s so difficult to answer that because what will house prices do, can you save to keep pace and now we have rising interest rates.

sammyjammy

How much debt?  What's your income? Whats the amount you want to borrow?  These are the important bits assuming you have no CCJs or defaults on your credit record.

ACG

If you have not been missing payments, then you should not have a poor score. 

Lenders use their own methods for scoring your application, they do not use the scores provided by equifax/experian etc. If you have no late payments, a good history, stable job etc then I would expect 99% of people to be accepted by their own bank. There will always be a few who fail the credit check or do not fit criteria/affordability. 

K_S

adrianwarhol said:

Hello I am hoping to get on the housing ladder at some point and hopefully secure a mortgage with my bank Barclays. Currently my score on Experian is 651 which is poor. I think this is due to me having three credit cards and a consolidation loan in process.

Does anyone know what sort of credit rating score I will need to secure a mortgage? 

@adrianwarhol The score of 651 doesn't by itself say anything about your chances of a mortgage, be that with Barclays or other lenders. As ACG has mentioned above, every lender has a different way of 'scoring' an application which includes the information in your credit reports (one/two of Experian, Equifax and Transunion) along with application details, mortgage requirements, etc.

Having said that, if the oldest account on your report is 6+ years old, and you still only have a score of 650 with Experian, that may indicate some incorrect/incomplete/adverse information on your report, so it would be worth getting a free statutory copy of your credit report and poring through it to check if the addresses are up to date, whether it's showing any missed payments, whether your electoral roll registration is at the current address, etc. Unless you have a humungous level of background debt, or a lot of recent hard-checks, two credit-cards and a consolidation loan should not be reason enough for a low Experian credit-score.