Your credit score is something that plays a significant factor in the process of submitting your application. This is because the likelihood of your application being successful lies in how high your credit score is. In some instances, this may not be the case because it is down to how the lenders go by their internal scoring systems.
Each lender’s criteria is data-driven and, it will develop over time. There is no need to worry if you have been unsuccessful with one lender as they will be more lenders who may be more accepting. Our mortgage advisors in Grimsby might be able to match you with the right lender so, get in touch so we can strive for the same thing you want- to get the best available deal.
There are a plethora of credit reference agencies within the UK with the most popular being Experian and Equifax. It’s best that you look into as many of these agencies as possible prior in order to get a more generalised overview. Check My File is a platform we suggest our customers use. It collates data from major agencies, including the aforementioned two, which then provides our customers with a broader view of how your credit score is performing. When you sign up, you will have a 30 day free trial on the platform then this will become a monthly fee of £14.99, however, your account can be cancelled at the end of the trial.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
Below are some ways you can improve your credit score:
Carrying our multiple credit searches can have a detrimental effect on your score. The first thing you need to do when you have registered with one of the credit reference agencies is not to start applying for new items of credit. A simple search of comparing car insurance on a price comparison website can register unwanted credit searches.
Applying for more credit later can be a wise decision if you’re applying for a mortgage anytime soon. Borrowing credit and paying it back later works out in the long run and lenders don’t want to see this just before you apply for a mortgage application.
A way to increase your credit score in a significant way can be to update your address and enlisting yourself on the electoral roll. By doing this you can give a good sense of stability and organisation, which lenders are impressed by. Make sure all information is correct .e.g. your name and your current address. You can register online if you aren’t on the voter’s roll.
Maxing out your credit each month is something you make sure you don’t do. This will reduce your score,therefore, it’s best to keep consistent with your payments each month. This way you can get in the lender’s good books as it shows you are responsible and can manage your money.
Exceeding an agreed card limit or overdraft can be a deterrent to a lender. This is because lenders want to know you’re taking your finances responsibly hence why they look over it.
Updating your details with your providers is important as it can sometimes appear that you’re living in two addresses at once.
You need to make sure that the addresses that you detail are correct. It can be difficult in terms of formatting if you live in a flat.
Getting in contact with the providers of the credit cards which you no longer use to close the accounts can provide you with extra security. Initially, it might have an effect as lenders wouldn’t be able to find who closed the account .e.g. you or the provider.
This will help you in the long run and reduces the risk of being a victim of fraud.
Removing any previous financial links with people like your family members or ex-partner can improve your credit score. As long as the financial association is still active, then the account will always remain in operation.
In order to remove this financial link, it’s best that you contact the reference agencies and make a request. The quicker you get this done, the more beneficial it will be.
Credit scoring can be seen as an unfair way for applications to get assessed by many consumers. The lender, however, sees this as a way to make their job easier but following these tips will help improve your credit score over time.
An up to date copy of your credit report is something you can give to your specialist mortgage advisor in Grimsby in order for them to have a detailed idea of your financial situation so they can then recommend you the most appropriate mortgage for your circumstances.