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Mortgage Credit Rating?

Guys,

I know some of you know I am waiting for the HPC with my partner.. (its in full swing now at least) and we have some 20+k deposit saved... as well as paying for a wedding this year lol.

My question is this. I've never really used or seen the need to use a credit card. I've just applied for a tesco clubcard credit card and intend to use it to pay off in full the credit each month (via direct debit).

If i hadn't got a credit card or say my partner hasn't had much credit history how would this impact our mortgage application? Alot or not?

I mean what else affects credit rating? I pay bills, rent and all my phone bills etc. Do these 'add' to your credit rating? or not much at all?

Thanks..

After I've got settled with my Clubcard Credit card will get the missus a Cashback version so we can both develop credit ratings. Need to ease myself into it first though.
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Comments

  • LillyJ
    LillyJ Posts: 1,732 Forumite
    When i looked at my credit score on experian, my mobile phone contract was on their, as was arranged over draft and credit card. I think without this I would have found it difficult to get a mortgage, and both our scores were near perfect.
    I have a credit card but I use it only about 1 month in every 3, and usually spend no more than £5 on it (car park charges normally!) and then pay it off every month. However on the credit score it showed me as making payments regularly every month so looked good (even though I don't really use it!).

    I don't think rent and bills comes in to it unless you have done something wrong if you see what I mean. It may be worth getting an overdraft arranged just so it shows up, you don't have to use it.

    I think getting a credit card would be a good idea. It doesn't really matter what the interest rate is as long as you pay it back! (Mine is something extortionate like 28% but I don't care as I never pay any interest)

    Getting a cashback one, you might be worth putting all your spending on it (like fuel, groceries, everything) to get the cashback, then pay balance at the end of the month but that's another story.

    Make sure you set up a DD for full balance so that you never forget to make a payment.

    Why don't you check on experian to see what you rating is now?
  • might be best asking on the credit card board, but remember credit card companies dont like people who pay their bills off in full! hence all the egg customers and people from other banks finding their credit cards being cut up despite having excellent history. not sure if when this happens it will affect your credit score/history adversly, but if I was a credit card company i would want to know if i was taking on a loss leading customer.
  • LillyJ
    LillyJ Posts: 1,732 Forumite
    I pay mine off in full, absolutely no issues whatsoever, as does my partner. Halifax practically bit our arms off to give us a mortgage.
  • m00m00
    m00m00 Posts: 1,755 Forumite
    LillyJ wrote: »
    I pay mine off in full, absolutely no issues whatsoever, as does my partner. Halifax practically bit our arms off to give us a mortgage.

    it will be the fact that you had a decent deposit, and asking for a sensible multiplier which will have helped you most.
    It's a health benefit ...
  • LillyJ
    LillyJ Posts: 1,732 Forumite
    I imagine so, but I am sure that our good credit scores didn't hurt?
  • efunc
    efunc Posts: 415 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Well, I guess your experience is different. I have no idea what my credit score is, quite poor I suspect. But I do know that my credit history is virtually non-existent. Despite the fact I've regularly used my barclaycard for 20yrs without defaulting and have about 7 bank accounts in credit, none of this information appears in my credit history. it will be quite a job getting a favourable mortgage when I try next year.
  • LillyJ
    LillyJ Posts: 1,732 Forumite
    efunc wrote: »
    Well, I guess your experience is different. I have no idea what my credit score is, quite poor I suspect. But I do know that my credit history is virtually non-existent. Despite the fact I've regularly used my barclaycard for 20yrs without defaulting and have about 7 bank accounts in credit, none of this information appears in my credit history. it will be quite a job getting a favourable mortgage when I try next year.

    Your bank accounts won't show up as you have not taken credit on them.

    Your barclaycard should show up and you are free to challenge the information you find on the credit check, as there can often be mistakes. If you get this sorted it may help. If you have a mobile phone contract that should be on there too. Why do you think your credit score will be so bad?
  • m00m00
    m00m00 Posts: 1,755 Forumite
    who are you checking your credit history with

    ideally you should check with both Experian and Equifax as not all information shows up on just one report.

    don't fall for their 'premium services' either, the £2 statutory report is the one you want.
    It's a health benefit ...
  • Would a bank account show up if you have an unused overdraft limit? What if you've gone overdrawn without an overdraft limit?

    Does getting your credit history from Experian or Equifax show up as a search? I gather searches are bad for your rating?

    Sorry for all the questions :)
  • m00m00
    m00m00 Posts: 1,755 Forumite
    getting your own credit history does not show up on any searches anyone else can make. It's your legal right to see what they hold on you.

    do not pay extra for a 'credit' score from either of these agencies as it bears no relation to actual credit scores used by lenders.

    my bank account shows on mine, and shows the balance etc
    It's a health benefit ...
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