To access the best mortgage deals it is important to have a a good credit score 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 many different steps Virginia installment loans you can take to increase your score, along with making certain that any debts is actually paid off promptly and you can reducing your debts.
Read our ultimate guide to change your credit score for the full lowdown. We’ve also put together a 12-week bundle to a better credit score, which breaks it down into easy-to-follow steps.
5. Register so you’re able 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 affairs. 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.
6. Keep the bill payments
Another important action you can take to improve your credit rating and you can possibility of getting your software accepted is always 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 points 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 minimal payment, so that your credit file isn’t affected. Consider setting up a direct debit so you never miss a payment.
For many who look at your credit history and find that it’s not direct, just be sure to get in touch with the lending company to have it upgraded. Or even, completely wrong guidance you are going to impact your credit rating plus capability to get a home loan.
Guarantee that info like your name and you can address try demonstrating precisely, and you will argument people problems (instance borrowing hunt, factors or economic associations) you don’t understand. Bear in mind that it takes weeks to possess errors as current, with respect to the bank as well as the borrowing resource department, therefore the at some point you appear for the that it the greater.
8. Get rid of one dated economic connections
If you’ve ever got a shared economic device having another individual, this will inform you on your credit history. It won’t apply at your credit rating it can impact exactly how lenders see you. So if you’re with the somebody who has a dismal credit background, it could be far better clean out connections with them out of the report which cannot reflect badly for you.
First, make sure the shared membership could have been finalized. Then contact the relevant borrowing from the bank reference companies to request an effective see out-of disassociation’ to remove any connections from your own credit history.
9. Raise your deposit
The higher your deposit, the lower the amount you’ll need to borrow from the bank. This is known as your financing to help you really 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 guarantee with a large deposit behind you.
