To access the best mortgage deals it is important to have a good credit rating. You can check your credit score for free with one of the main three credit reference agencies in the UK: Experian, Equifax and TransUnion. You can use your report to identify areas that you need to improve.
There are various steps you can take to improve your score, plus making certain that your entire costs is paid down punctually and you will reducing your debts.
Read our ultimate guide to improve your credit score for the full lowdown. We’ve also put together a 12-few days bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Sign in to vote
Before you make a mortgage application, make sure you are on the electoral check in as this can improve your credit score by around fifty circumstances. It also allows lenders to check that you are who you say you are and make sure the details on your application are accurate.
If you are not registered to vote, you can sign up online. It only takes about five minutes and you’ll need your National Insurance number to hand. Check the Government’s website to see if you are qualified.
6. Maintain your bill repayments
Another important thing you can do to boost your credit score and you will odds of having your application acknowledged will be to maintain your expenses costs.
Lenders will check your credit report to see how you’ve managed your finances in the past and use this data to predict your future behaviour. Missing just one payment can knock off around 130 situations from your credit score. But if you have a good credit score and a solid history of repaying your bills on time, this will work in your favour.
Ideally, you want to pay your credit card balance off in full each month to avoid all interest and charges. But if this is not possible, you need to pay at least the minimum commission, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
If you check your credit report and find it is maybe not right, try to contact the financial institution to have it upgraded. If not, wrong guidance you may feeling your credit rating plus power to get a mortgage.
Guarantee payday loan Atmore that details just like your term and you will target try indicating precisely, and conflict people problems (such as credit hunt, circumstances or economic associations) that you don’t acknowledge. Keep in mind it will require weeks to own mistakes getting updated, according to financial while the borrowing source department, therefore, the fundamentally you look into the that it the higher.
8. Treat any old monetary connections
If you have ever had a mutual monetary device with another person, this will let you know on your credit report. It won’t apply at your credit rating but it can affect just how lenders see you. And if you’re associated with anyone who has a poor credit record, it will be better to beat ties together with them from your report this cannot reflect badly you.
First, ensure that the joint membership has been closed. Then get in touch with the relevant credit site enterprises in order to consult a good observe out-of disassociation’ to eliminate people connections from your credit history.
nine. Improve put
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your mortgage so you can worth‘ (or LTV). Saving a large deposit can boost your chances of getting your mortgage application accepted because the bank is likely to feel more comfortable if you can put a lot of money down upfront (usually over 10% of the value). If the house value was to drop, you would be less likely to go into negative security with a large deposit behind you.
