We advise all our customers new/existing customer, especially First Time Buyers, in Lincoln the importance of having a ‘good’ credit score. Potentially the higher the score, the better of a chance of getting accepted and being successful with your application.
However, you need to be aware that Lenders have their internal scoring system meaning you might not be guaranteed acceptance.
Every lender has their criteria which they have developed over the years. Don’t waste your time troubling if you’ve been unsuccessful with one lender. Other mortgage lenders might be willing to be more relaxed.
It is down to our Mortgage Advisors in Lincoln to match you with the lender that is right for you. End of the day we want the same thing as you – to get the best deal accessible to you.
There are several credit reference agencies in the UK; these include Experian and Equifax. It’s a good idea to look into many of these agencies as possible in advance, to give you a more particular view of your credit score.
Furthermore, it is also plausible that some of these agencies hold inaccurate information. Therefore, by checking with multiple agencies, you can be sure that your information gets appropriately amended.
Numerous credit searches can have a negative impact on your credit score. Be on the lookout of using price comparison websites which are known to be significant credit culprits searching on individuals.
If you are applying for a mortgage soon, it may be wise to apply for additional credit afterwards. Whilst having some credit and paying it back is a good thing for your score in the long run. Lenders prefer to see you control your borrowings right before setting up a mortgage application.
Make sure that you have remained enlisted on the electoral roll, and it improves your credit score. It implies stability which lenders like.
Ensure your name spelt correctly and that it’s your current address which is registered online. If you aren’t registered, it’s straightforward and comfortable enough to do this online.
If you reach your peak your card each month, your score will get reduced. Using a credit card to keep on top of your payments each month is a preferred approach.
It is a good indicator of your lender that you are good at controlling your money. The main red flag in a lenders eyes is if you go above an agreed card limit or overdraft. The reason lenders watch over this is because they want to know you’re able to take your finances responsibly.
You might notice on your credit report that you are living in two different places at the same time if providers have yet to get informed that you have moved houses.
It is pivotal that the addresses which you’re updating get spelt correctly; If you have been residing in a flat, this can be a bit more complex as these address can get formatted in different ways.
If you no longer use individual store/credit cards, you should get into contact with the providers to close the account for extra security. In the short term, this could be seen as having a brief impact on your score as the lender can’t tell who’s closing the account, e.g. you or the provider, but this will be for the better and an advantage to you in the long run.
It’s a great thing to do to reduce your chance of becoming a victim of fraud if you don’t notice you have a lost a card which you may use regularly.
By having, family members or ex-partners connected to you financially could mean that they’re affecting your credit score unknowingly. However, you won’t be able to get the financial association removed if the account is still active though.
To remove the links between you and another individual, you should contact the reference agencies and make a request. The sooner you do this, the more beneficial it will be.
Many consumers feel that credit scoring is an unfair way of applications getting evaluated, Lenders themselves are indifferent to this idea as it makes their overall job more manageable.
It is more expenditure for them to operate this way, and computers give secure outcomes. On the other hand, some lenders do still do it the old-fashioned way but still apply the same rules about the number of defaults and CCJ’s they will allow.
When setting up your application, be sure your report is up to date to increase your chances of being accepted the first time. The more in-depth information which your Specialist Mortgage Advisor in Lincoln has at hand, the better.