Have i ruined my mortgage chances?

Shak123

Hi everyone

i just wanted some advice.
My husband has recently been given 40k as a result of some inheritance, and we have been looking to apply for a mortgage.

i always thought our chances at a mortgage was always slim as we could never save up for a deposit but now we have the 40k my husband wants us to apply for one.

He doesnt have any debt, while i have quite a bit do, and he is helping me clear my current debt. We have shifted £3k in the last two months. But in the last 6 years ive had no missed payments, no defaults, no late payment charges, no ccjs at all. My credit score is going up and my overall debt is reducing.

Today he went to a broker and got a decision in principle even with my debt.

Last night i did something absolutely ridiculous and im kicking myself about it. My brother told me amazon three month plans dont appear on your credit file as they dont do a credit check. So i bought something.

But i had a bad feeling about this and i messaged amazon to ask will this appear on my credit file (stupid i know i should have done it before even committing ) and they said yes. I immediately cancelled the plan less than 24 hrs of taking it out.

now im wondering what damage have i done to my credit file, and have i ruined my chances of gettinf a mortgage which was pretty hard to get to begin with. I just cant believe how stupid i am. Have i ultimately ruined my chances of a mortgage?

ACG

I am 99% sure you will be fine. Having debt in itself is not a problem, so long as it is affordable and no payments are missed. Dont worry about your score, its a made up number that mortgage lenders do not use.

However…

If it has a high interest rate (50-100% plus) then some lenders might class it as a pay day loan and then they may have a problem with it. That being said, I imagine it is 0% interest?

The only other potential issue is obviously you have had a credit check carried out. Assuming it is a hard footprint, that could be a problem if you are extremely borderline.

If I was a betting man, I would say you will be fine.

Shak123

It was a 0% interest 3 month payment plan. I just wanted to spread the cost over three months which meant i had more money to get rid of current debt.

i have been really good with putting nothing on credit cards, and using klarna and PayPal 3 payments. I dont know why i didnt think of the amazon one as being a 3month payment.

honestly been feeling sick to my stomach because i keep thinking how stupid can i have been. My 3k payments i have made havent yet appeared on my credit file so im hoping these will somewhat make me look more appealing for when we need to finalise everything.

Shak123

also it wasnt even a credit check, it just as one of the payment options. It immediately went through. A few years ago i used my barclays partner finance for something and it had to be subject to approval, but this was instant. As if i had been pre approved.

Newbie_John

So you have some debts already, planning on taking a big mortgage debt and in the meantime decided to go for another Amazon debt :)

It's not the affected credit score that's an issue here, neither it's impact on possible mortgage - it's the habit that you may want to change.

Good luck.

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81988075#Comment_81988075

Using Klarna and similar isn't a good sign, really if you want something then you should save up if you can't afford it "today". Save up the payments for three months and then you can have your "thing" without using Klarna/PayPal.

Shak123

it wasnt klarna, it was amazons monthly payments. Ive had a bit of a research as well and lots of people say they have used it and doesnt appear on their credit file. Its based on you having a good account, a valid payment card. But when i asked the amazon colleague will it appear on the credit report they said yes, so im really confused now bcos lots of website say its not a hard check and will not appear on the file. If you dont pay amazon just close your account, but the colleague said something else.

Shak123

i used the second one

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81988161#Comment_81988161

But, in using it (whether it is on your file or not) you're using money you don't really have... It's debt.

Shak123

i do have the money. I set myself a budget of £70 a week, which means i have £300 leftover every month to make an additional payment. I just wanted to minimise how much of my budget i take out. It was just me thinking stupidly. But it looks like the monthly payment thing doesnt affect my credit report so ive learnt my lesson and i wont be using any credit until after completion. So i guess close call

Newbie_John

https://forums.moneysavingexpert.com/discussion/comment/81988287#Comment_81988287

It not how budgeting should work, if you set yourself £70 budget you should stay within, you could spend less and carry over remaining money to the next week. Using any kind of loan like that one from Amazon, doesn't make much sense - you struggled this month with £70 so you borrowed from your future weeks hoping then it will be enough..