Clearing up my credit score ready for mortage application next year

DJMK4

DJMK4

DJMK4

Soldato
Joined
1 Dec 2004
Posts
23,171
Location
S.Wales
Hi all,

I am looking to apply for a mortgage sometime next year, I do have a couple of credit cards which should be clear by the end of this year (Nov/Dec).

Also a car loan with 2K on which I have been paying,

there was one issue with going over credit limit which was an accident, basically I had something do an auto subscribe which I was meant to cancel and I forgot. I went over my limit slightly but this was corrected, as iv been chucking most of my income in to savings over the past 6 months there has been less put on the cards, however im looking to clear the 2 cards up in the next 2 months.

So thats one thing thats come up, over credit limit on a card

Second thing to come up which I need to remediate is


You are not on the Electoral Roll at your current address -

Now I am currently living in a shared house in cardiff, have been for 3 years, but I do have my bank, drivers licence, passport etc registered to my parents address (car insurance is obviously where im living now) as I dont want mail going to shared house, iv been reluctant to change it now as I could potentially be moving.


Clearscore says


Your credit score is
453 out of 700
Looking bright



There is no issues with the car loan I have, should be paid off mid next year, I need to get rid of the credit cards, and try and fix the electoral roll one.

Once you paid your card off how long does the negative "over limit" stay on your report, and could that have an impact on mortage?
 
If you can, close the credit card account that you went over limit on. Even though it might have just been a small amount, it can keep tripping you up for quite a few months even after being rectified.
 
DJMK4 said:
Once you paid your card off how long does the negative "over limit" stay on your report, and could that have an impact on mortage?
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My understanding (which may well be wrong) is that all records for your payment history are kept for 6 years - however a historic over limit or a few late payments won't really cause you any problems, once you start getting defaults things will go downhill drastically and stay there.

The biggest thing is to get on the electoral roll ASAP, then clear those card balances and the car loan - however once you've cleared the cards I'm not sure whether it's better or worse to close the accounts, or leave them open with a zero balance (it used to be, but I'm not sure if things have changed)
 
Change your address on bank and cards to match where you live

Caused loads of hassle for me. I guess I looked like someone who didn't took after stuff like that... Basically if they do the deep credit check and an address comes up that doesn't tally with others they won't want to know
 
The whole you've not on the electoral register is BS. They tell me this all the time and say they are going to rectify it and never do (I've registered at every address I have been to and I have voted at most of them!!!!)

On a side note if you are saving money and not paying the debt off then make sure you are getting more interest then you are paying on the debt. Otherwise you're better off paying the debt.

Edit: If you need a good financial advisor in Cardiff they guy I used was really good and I would highly recommend him (he works on commission from the banks as most do so there is no payment from you and he gives great advice as I've just gone through what you have - now a home owner)
 
When it comes to credit cards, its always better to have something on them and make (at least) the minimum repayments each month. This shows to a bank/mortgage company that you can make repayments, this in turn boosts your credit score.

I'm not sure how long it stays on record but i doubt its a great length of time.

Being on the Electoral register is another biggy. Most credit checks will come back unfavourably if you are not registered. This can effect pretty much everything from getting a mobile phone contract to getting a mortgage. If you don't want any electoral post going to your shared house, why not a proxy to vote for you? This way you are registered and you wont be receiving unwanted post at your current address.

as stated above, close the card that you went over on, and open a new card with lower interest rates ;)
 
Wouldn't worry too much about the loan either. The amount you pay back will just come off your affordability

Ideally you want your credit card balance paid off each month though

I had a big loan on mine and still a 999 score on experian and AA on halifax's system :). Once I realised my credit score was messy I used credit card all month for purchases and paid it off in full each payday. This for my score up significantly.
 
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Being on the electoral register doesn't generate extra post. Just opt out of the open register; it still counts for credit checks.
 
"andy" said:
Wouldn't worry too much about the loan either. The amount you pay back will just come off your affordability

Ideally you want your credit card balance paid off each month though

I had a big loan on mine and still a 999 score on experian and AA on halifax's system :). Once I realised my credit score was messy I used credit card all month for purchases and paid it off in full each payday. This for my score up significantly.
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There's no such thing as an actual credit score though. The number of rating it gives you is arbitrary.
 
I am on the electoral role, but for the address in Cardiff (changed it during the brexit vote), I guess its seeing that I still have stuff registered to my old address so there is a mismatch in addresses?


- I will change my bank details to where im living now, how long does it take for this to see positive effects in the report? do i need to do my driving licence and passports?? I am not intending to stay in this place too long so it seems a hassle changing them if im going to be moving again, hence why I try and keep stuff like that going to parents house.

To be honest I have put off paying big amounts off the card as I have had to chuck loads in to savings over the last 6 months, but next month im paying the cards one, one in one month the other in the other, then going back on to savings. But I have payed over the minimum. But I do still have the over limit.

Say if I pay big amounts off the cards over the next 2 months, how long will it take to see improvements in my report?
 
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That damn electoral roll thing.
I'm not on that on my credit report either.
I despise they use that thing at all
 
sbi5ar said:
Edit: If you need a good financial advisor in Cardiff they guy I used was really good and I would highly recommend him (he works on commission from the banks as most do so there is no payment from you and he gives great advice as I've just gone through what you have - now a home owner)
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It hasn't been legal for Financial Advisors to do commission based work since 2013 for certain types of financial products, so just worth bearing in mind you might end up paying for advice.
 
platypus said:
It hasn't been legal for Financial Advisors to do commission based work since 2013 for certain types of financial products, so just worth bearing in mind you might end up paying for advice.
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My mortgage adviser got a commission from Nationwide for providing me with one of their mortgages. That was last December. Maybe for mortgages they are allowed to.
 
M1k3H said:
My mortgage adviser got a commission from Nationwide for providing me with one of their mortgages. That was last December. Maybe for mortgages they are allowed to.
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As I understand it brokers are allowed to take commission; financial advisers aren't.
 
bright on clearscore
POOR on experian lol?

my score is over 700, while not 999 it's still not poor.

I have a negative for not having a credit card? you what m8.

funny how I never miss any of my debits/loans etc and usually over-pay on loans monthly.. jokers.
 
Ugh, have to change my bank address by form in the post or visiting a branch,

Do I have too?

Hardly seems worth it when im potentially going to be moving again.

Will they ask for proof of address of where im living now? as I wont have any! with everything registered at my previous address.


Yep clearscore is free
 
iMacMart said:
Is Clearscore free?
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It is, but I would also recommend using Noddle - which is also free, but far more in-depth and has a paid option which is super-cheap and offers help and advice on improving your credit score.

As a note of interest and perhaps some hope to anyone that's struggling to get credit, about six years ago I'd not had anything on credit for years after being absolutely terrible with money in my late teens and most of my 20's. As a result if this, I had a very poor credit rating to the point where I found it difficult to even get a half-decent bank account - but enough was enough.

I initially used a 'top-up' credit card for a while to kick-start the recovery of my score, but it wasn't until I needed a new car that I decided to try and get credit for one through a dealership. Amazingly, they were able to give me a deal (albeit with not the best APR) and I managed to pay it off in four years without missing a single payment. During that period, I was also able to get a proper credit card and kept paying as much as I could (even overpaying when possible) every month - but it wasn't until last year when I was able to finally get a proper bank account through First Direct that I really started to see the effects of my score improving massively. I've watched my score on Noddle go from a very poor score of around 350 to the point where it's now 595 and is edging towards being considered a 'good' score.

So stick with it, pay regularly and overpay if you can and eventually you'll reap the benefits. Obviously also make sure you're on the electoral roll and make sure you check your credit file thoroughly for any mistakes as they can drag your score down and make it hard to get credit.
 
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