Having a deposit and earning a salary that covers repayments is important but not the only area a lender will look at. Having a good credit score is also important. Whilst each mortgage lender will have different criteria we have listed a few hints that can help improve your credit score.
Credit cards
Having a credit card is viewed as a positive by lenders as it shows you are used to credit, but only if it is well managed. Paying off your credit card each month will improve your score. Perversely if you haven’t got a credit card applying for one can actually help your score, but make sure you clear the balance every month.
Voter's Role
Make sure you are registered on the Voter’s Role at your current address. Lenders like to know who you are and where you live. To do this contact, your local council - you can do this online.
Pay Day Loans
These are an absolute no-no and for most lenders, mean an instant decline! "Buy now pay later" schemes offered by some retailers are treated as PDLs by some lenders and will reduce your score considerably!
Payments and withdrawals
Your lender will want to look at your bank statements. Payments to “Pay Day Loan” companies and On-Line Betting Agents are not looked upon favourably. In addition, cash withdrawals from credit cards should be avoided. Of course, missed payments and unauthorised overdrafts are a big no-no.
Other applications
Loans, credit, and even car insurance and mobile phone applications will leave a footprint on your credit file. Whilst we all have them, too many may reduce your score.
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