Your credit report will form a key part of your mortgage application so it’s really important to check it and iron out any irregularities in advance of your application to avoid hitting a road block later on.
Companies like Experian and Equifax can provide you with a detailed one off credit report for free, however if you want to be extra cautious or you’re looking to really stretch your borrowing potential, it’s worth subscribing to their paid service a few months in advance so you can keep your credit score in check and chose the right time to borrow.
Credit reports draw information from a number of key sources to provide an overall score.
Typically they will look at:
Your Address History – This is tied into both the electoral register and any banking or credit institutions you use. Credit institutions share address information to minimise the risk of fraud and ensure borrowers cannot “disappear” so it’s important this information is accurate across all of your current credit lines and matches your address on the electoral register.
Aliases – Are you known or have you been known by a different name in the past? This could be a maiden name or it could be that some organisations know you as Mr Smith and others as Mr Smith-Jones.
Associations – If you are financially linked to another person (for example – in the past you’ve applied for credit jointly with someone), this will show on your report so it’s important that if you are no longer linked, you advise the credit agency of this so they can amend your report.
CCJ’s /Bankruptcy / Voluntary Arrangements – These stay on your credit report for 6 years. If you have cleared the debts or the arrangement has ended or been annulled you will need to provide proof to the credit report agency to have this removed from your record.
Credit Accounts – Your credit report will provide detailed data of your current borrowing including amounts owing and whether payments have been made on time. It will also show cash withdrawals on your credit card so you need to keep these to an absolute minimum as this will negatively affect your score. If you have an overdraft it will also show this, how much you use and how often you are in it.
It’s no secret that credit reports are incredibly thorough. Our top tips for improving your credit rating are:
• Make sure you’re on the electoral role
• Ensure you have 3 years accurate address history
• Close any accounts you have not used for a while
• Don’t withdraw cash on your credit card
• Don’t apply for credit for anything else around the time you need a mortgage (this includes store cards, mobile phones, buy now pay later deals etc.)
Whatever your credit rating, Credius’ expertise can help you borrow what you need to buy your dream home, to find out how visit www.credius/mortgages or contact us today to arrange a free no obligation appointment at firstname.lastname@example.org or call on 020 7562 5858.
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