Clearing up my credit score ready for mortage application next year

Peerzy · 22 Sep 2016 at 15:40

I was told as part of my first mortgage application (2014) that I needed to clear the balance on my CC (was only about £1k on my Amex and it was that months spend anyway so was always going to be cleared via DD). Nationwide seemed to insist this as part of the process.

Get everything important down as your current address that you live in and the same with the ER - without that you'll really struggle.

Avoid any gambling transactions on your current account for 3-6 months prior to any application. Don't take out any additional finance / borrowing between the start of your application and completing.

shauncr91 · 22 Sep 2016 at 16:14

413x said:
That damn electoral roll thing.
I'm not on that on my credit report either.
I despise they use that thing at all

We sometimes use the ER for young applicants on low value applications who won't necessarily have much credit other than a bank account so it's critical to be registered.

Skillmister · 22 Sep 2016 at 16:19

After changing address 5 times in the last 4 years it's taking some work to bring my credit score up

spoffle · 22 Sep 2016 at 16:27

Come on people, the actual number doesn't actually mean anything solid. It's simply a correlative speculative number that doesn't have an actual bearing on the ability obtain credit.

DJMK4 · 22 Sep 2016 at 18:23

So basically if I stick on target and pay off good amounts on my card and try to attempt to clear, change my bank and. Card registered addresses to match where I'm living now so it's the same as the electoral role.

Iv been told drivers licence /passport shouldn't matter ?

I should be good for improving. Does it then take 3-6months to sort of give you the nod your ok or will lenders still look at last year .

Need to read up a bit more I think

Harold_Bishop · 23 Sep 2016 at 10:50

clockwork.satan said:
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 -

What is "overpaying" on a credit card? Paying more than your bill? Why would you do that?

Or do you mean paying more than the minimum amount? If you can only pay off the minimum amount then you probably shouldn't be making any purchases on a credit card unless you really, really need to. If you buy something on a credit card knowing you can't pay it off before the interest kicks in, think twice about buying it.

Peerzy · 23 Sep 2016 at 16:10

DJMK4 said:
So basically if I stick on target and pay off good amounts on my card and try to attempt to clear, change my bank and. Card registered addresses to match where I'm living now so it's the same as the electoral role.

Iv been told drivers licence /passport shouldn't matter ?

I should be good for improving. Does it then take 3-6months to sort of give you the nod your ok or will lenders still look at last year .

Need to read up a bit more I think

Passport doesn't have an address, they might want to use DL as a form of ID at which point the different addresses will be flagged up. You might be able to get away without using it but I'm not sure.

Generally they'll never look back further than 6 months on your bank statements (unless you are self employed, in which case they'll likely want at least 2 years of records). The norm is the last 3 months of bank statements at the point the application is made - these need to be clean of gambling and you on your best behavior. If they see a regular £200 payment for something it'll go against how much you can borrow.

They may insist on all your credit cards being cleared by the time the exchange is done (like they did on me) but they may not. They won't on the loan but they'll count that against you affordability.

DJMK4 · 24 Sep 2016 at 02:42

Cool. Should be doable then

i went to lloyds to switch my address earlier. Need to do halifax next. And yep i will be ensuring i have things in order.

Thanks for info all

ristac · 6 Oct 2016 at 23:59

When credit scoring banks love it if you make two payments a month on your credit card. Set up a direct debit for the minimum repayment and make a second payment on top each month and watch your rating increase

dbmzk1 · 7 Oct 2016 at 03:42

There's no such thing as a credit score. Just a credit history of paying stuff or not paying stuff. The score is something the websites make up to make it sound good.

All they basically check for is

1) That you pay things you commit to paying for
2) If you look dodgy in any way

And you don't need a score to know if that's the case or not...

You don't need a totally clean or perfect credit history, but any recent missed payments will be a massive red flag. Other stuff including most debt is generally fine, so long as you can afford the payments, but note that many lenders don't like payday loans.

#Chri5# · 7 Oct 2016 at 08:25

ristac said:
When credit scoring banks love it if you make two payments a month on your credit card. Set up a direct debit for the minimum repayment and make a second payment on top each month and watch your rating increase

What's the theory behind that being good then?

ristac · 7 Oct 2016 at 10:35

#Chri5# said:
What's the theory behind that being good then?

Absolutely no idea, I think I first read it a few years ago on the Money Saving Expert forum then at a meeting with a business bank manager at HSBC he virtually advised the same thing. Makes no sense why paying £50 over the top is less effective as making a second £50 payment after the minimum.

I tried it for 6 months and obtaining credit was far easier after doing this, could have been a coincidence