Are you looking to improve your credit score? As professional mortgage advisors we see credit reports on a daily basis. This gives us a great understanding of how they work and what to look out for.
If you are applying for a mortgage soon and are worried about your credit, then we hope this article will help.
Does a good credit score help with a mortgage application?
A good credit score can help a mortgage application. Part of the mortgage application process usually involves a credit check. This will often be where the mortgage lender decides if they are happy to proceed with a mortgage application or not.
Can you still get a mortgage with bad credit?
It is possible to get a mortgage with some bad credit however this will depend on many factors. Each lender will have different criteria and a mortgage advisor will be able to talk you through your options. Whilst in some cases you can still get accepted for a mortgage, it is likely that you may have to pay a higher interest rate. This will be dependent on individual circumstances and the level of bad credit.
Are there ways to improve your credit score?
Yes, there are things that you can do to help improve your credit score. Most of these are simple to do but can have a big impact.
Below are 4 tips that are easy to do and can help improve your credit score.
- Make sure you are registered on the Electoral Roll for your current address and that this shows on your credit report. This is often overlooked and can have a big impact on your credit score.
- Identify any incorrect information on your credit report and have this rectified e.g. name, date of birth, address etc. Making sure that all information is accurate and up to date will help improve your credit score.
- Ensure all your payments are made on time. This may seem obvious, but we often see payments that have been made late. A good way to ensure things are paid on time is to set up a direct debit for the payments.
- Check all your existing credit is registered at your current address and not at any previous addresses where you may have lived. If you have moved house, you may not have updated credit card or loan companies about the change in address. This can have an impact on your credit score, therefore it is important to make sure these details are all up to date.
If you have any questions or you are planning to apply for a mortgage soon then get in touch as we would love to help.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.