To access the best mortgage deals it is important to have a a good credit score get. 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 many actions you can take to improve your rating, including ensuring that any expense is actually paid down punctually and cutting your bills.
Read our ultimate guide to alter your credit score for the full lowdown. We’ve also put together a 12-day package to a better credit score, which breaks it down into easy-to-follow steps.
5. Register to help you installment loans Nevada no credit check vote
Before you make a mortgage application, make sure you are on the electoral register as this can improve your credit score by around fifty issues. 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 eligible.
six. Maintain your expenses repayments
Another significant action you can take to improve your credit score and you will possibility of having your application accepted is always to keep your expenses repayments.
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 items 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 lowest percentage, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For those who look at your credit report and get that it is perhaps not right, try to contact the lending company to have it up-to-date. If not, wrong pointers you can expect to effect your credit score along with your ability to get home financing.
Make sure that details like your label and you may target are exhibiting precisely, and you may conflict any problems (like credit queries, products or monetary associations) that you don’t understand. Be aware that it requires few weeks having mistakes are upgraded, with regards to the financial in addition to credit reference agency, so the at some point you appear to the that it the greater.
8. Eradicate people old monetary connections
If you’ve ever had a joint monetary tool that have another person, this will show on your own credit file. It’s not going to apply to your credit rating however it may affect how loan providers view you. So if you’re in the somebody who has a poor credit background, it would be far better eliminate links with them of their declaration it cannot echo poorly for you.
First, ensure that the combined account might have been closed. Then contact the appropriate credit reference providers to help you demand a beneficial ‘find from disassociation’ to remove people ties out of your credit history.
nine. Raise your deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your ‘loan to help you well 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 collateral with a large deposit behind you.
