Mortgage almost paid off - now what?!!

blue.peter

Kim1965 said:

... then said i had been refused because of an inadequate credit history! I have not used a credit card or had credit for 15 years i guess. Is this a problem? 

Yes, that'd be the reason. Lenders like to see a steady history of borrowing and repaying: it says "this person's a good risk". If you think that you might ever want to borrow, it'd be a good idea to get a credit card and use it. You don't need to use it a lot, but do make sure that you pay it off in full every month.

Under the circumstances that you describe, the bank with which you have your (main) current account is the most likely source of a credit card if you do decide to get one: they can see some of your history.

I do use my credit cards for pretty much everything, simply because I find it convenient. It helps my money management by consolidating everything and allowing me to know in advance exactly how much I'll be spending over the next month. Each month, the previous month's credit card spending is paid off in full by DD.

blue.peter

igiiroko said:

Feels strange, and almost "wrong"! 

Oh, yes, you'll have had the mortgage so long that you're used to it, so it's definitely strange. But good strange!

PennyForThem_2

blue.peter said:

Kim1965 said:

... then said i had been refused because of an inadequate credit history! I have not used a credit card or had credit for 15 years i guess. Is this a problem? 

Yes, that'd be the reason. Lenders like to see a steady history of borrowing and repaying: it says "this person's a good risk". If you think that you might ever want to borrow, it'd be a good idea to get a credit card and use it. You don't need to use it a lot, but do make sure that you pay it off in full every month.

Under the circumstances that you describe, the bank with which you have your (main) current account is the most likely source of a credit card if you do decide to get one: they can see some of your history.

I do use my credit cards for pretty much everything, simply because I find it convenient. It helps my money management by consolidating everything and allowing me to know in advance exactly how much I'll be spending over the next month. Each month, the previous month's credit card spending is paid off in full by DD.

Yup - that is what I do too.  Love DD for CCs - it happens automatically.  If you are worried about CC limit i.e. they give you £xK 
limit - you can reduce it by phoning them.  You could have it as low as 1K.

Rob_Harrold

Well done on finishing your mortgage, i would suggest enjoying the successful conclusion of such a large financial responsibility by doing something fun and irresponsible. 

Kim1965

Odd isnt it , a person who has never been in debt cannot get credit. Having said that I cannit forsee a scenario where by I would need it. 

PennyForThem_2

Kim1965 said:

Odd isnt it , a person who has never been in debt cannot get credit. Having said that I cannit forsee a scenario where by I would need it. 

I get up to 50 odd days interest on my current account by using a CC.  I also get protection if I pay for an item over £100.  I get (probably) an interest free loan over a number of months for a big purchase - say £500 + .  That is why I value having a high credit rating score.  

If i was  genZ / Milenial then it is essential for rent/house purchase mortgage.

Kim1965

Im sure if i wanted a credit card the bank i have been with for 40yrs and never been overdrawn woukd give me one. 

CarolWHerts

When you've paid the mortgage off you should also ensure that the Land Registry has your contact details in order to prevent your property from being fraudulently sold without you knowing. The involvement of a mortgage company provides an automatic check on this sort of fraud. See https://www.gov.uk/protect-land-property-from-fraud

Farway

CarolWHerts said:

When you've paid the mortgage off you should also ensure that the Land Registry has your contact details in order to prevent your property from being fraudulently sold without you knowing. The involvement of a mortgage company provides an automatic check on this sort of fraud. See https://www.gov.uk/protect-land-property-from-fraud

Good tip, and you can also register with them to get an alert if anyone is running searches on your property, seem strange but true, your house can be sold / stolen from under your nose without you ever knowing about it

Flugelhorn

PennyForThem_2 said:

Kim1965 said:

Odd isnt it , a person who has never been in debt cannot get credit. Having said that I cannit forsee a scenario where by I would need it. 

I get up to 50 odd days interest on my current account by using a CC.  I also get protection if I pay for an item over £100.  I get (probably) an interest free loan over a number of months for a big purchase - say £500 + .  That is why I value having a high credit rating score.  

If i was  genZ / Milenial then it is essential for rent/house purchase mortgage.

I have a very high credit score but no mortgage, credit card or loan (12 years +)   - would I still be able to get a loan if needed?