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  • FIRST POST
    • changingmyways
    • By changingmyways 11th Mar 18, 9:13 PM
    • 3Posts
    • 0Thanks
    changingmyways
    Paying off debt and applying for a mortgage
    • #1
    • 11th Mar 18, 9:13 PM
    Paying off debt and applying for a mortgage 11th Mar 18 at 9:13 PM
    Hey there. First time poster.

    I am 26. However, in my earlier 20痴 I was very irresponsible with money and because of this ended up with several credit cards open with varying amounts on each.

    In the last month I have paid off 2 fully and now only have 2 open, one with 」650 and one with 」1300. I am earning about 」1300 per month so I知 hoping to have this paid off I the next few months.

    My worry is, however, that my partner and I are hoping to apply for a mortgage before the end of this year and I知 afraid that, due to my poor credit history, I値l be rejected. Although I知 told not to take much notice of my credit rating, I知 currently at 845/999 on Experian and 3/5 on Noddle, both being a 素air rating.

    I must note that my partner has a perfect credit history.

    I guess I知 just looking for reassurance that paying off my debts and getting a mortgage by the end of the year is a plausible plan.
Page 1
    • venison
    • By venison 11th Mar 18, 10:42 PM
    • 2,147 Posts
    • 2,294 Thanks
    venison
    • #2
    • 11th Mar 18, 10:42 PM
    • #2
    • 11th Mar 18, 10:42 PM
    You are correct you credit "rating" means nothing its a made up number that only you see. Its your credit history that matters, have you defaulted on your cc payments in the last 6 years?
    Ex Board Guide
    • takman
    • By takman 12th Mar 18, 12:15 AM
    • 3,387 Posts
    • 2,985 Thanks
    takman
    • #3
    • 12th Mar 18, 12:15 AM
    • #3
    • 12th Mar 18, 12:15 AM
    Hey there. First time poster.

    I am 26. However, in my earlier 20痴 I was very irresponsible with money and because of this ended up with several credit cards open with varying amounts on each.

    In the last month I have paid off 2 fully and now only have 2 open, one with 」650 and one with 」1300. I am earning about 」1300 per month so I知 hoping to have this paid off I the next few months.

    My worry is, however, that my partner and I are hoping to apply for a mortgage before the end of this year and I知 afraid that, due to my poor credit history, I値l be rejected. Although I知 told not to take much notice of my credit rating, I知 currently at 845/999 on Experian and 3/5 on Noddle, both being a 素air rating.

    I must note that my partner has a perfect credit history.

    I guess I知 just looking for reassurance that paying off my debts and getting a mortgage by the end of the year is a plausible plan.
    Originally posted by changingmyways
    The first thing you and your partner both need to do is look at your credit reports at all three of the main Credit Reference agencies. You can do this for free by using Noddle, Clearscore and MSE Credit Club. It looks like you have done abit already but you both need to check all three 100% and make sure everything is correct.

    Paying off your debts is good and then using one card and paying it off in full each month will build up a good history of responsible credit use. Also you should both avoid applying for any new credit as too many credit searches will be a negative when you come to apply for a Mortgage.

    You say that your partner has a "perfect" credit history but it depends on what you mean by that. If they have had no credit in the past it may look perfect but will not be as good as someone who has a credit card and pays in full each month.

    You should also make sure your both on the electoral roll and if not then get that sorted.

    Another thing you may not have thought of is that they check your bank statements so make sure you don't have any transactions related to gambling or excessive expenditure in the time leading up to applying for the mortgage.

    Finally I would say you should create a tight budget for both of your money so you can save as much as possible for a deposit/emergency fund ready for when you want to buy.
    • enthusiasticsaver
    • By enthusiasticsaver 12th Mar 18, 8:55 AM
    • 6,605 Posts
    • 13,839 Thanks
    enthusiasticsaver
    • #4
    • 12th Mar 18, 8:55 AM
    • #4
    • 12th Mar 18, 8:55 AM
    If you don't have defaults you should be fine. Having several cards open in itself does not damage your credit record so long as the percentage of credit used is not really high and is not disproportionate to your income.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • changingmyways
    • By changingmyways 13th Mar 18, 6:59 PM
    • 3 Posts
    • 0 Thanks
    changingmyways
    • #5
    • 13th Mar 18, 6:59 PM
    • #5
    • 13th Mar 18, 6:59 PM
    You are correct in saying that although my partner has a seemingly !!!8220;perfect!!!8221; score, he doesn!!!8217;t vitally have that much history of credit cards etc so that!!!8217;s possibly something we should look at. But no defaults no.

    I believed that I had two late payments last year. However, just downloaded my report from Experian and it shows all payments from the last 24 months have been on time?
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