Mortgage and Credit Reports made simple

On January 7, 2012, in News, by Lewis Alexander

Mortgages Made Simple

  • For most of us, buying a home means applying for a mortgage – and success or failure could depend on your financial history.

    free credit report UK from Experian

Your Credit Report

  • Your credit report is your personal financial history. It includes a wide range of information on your credit behaviour, from your credit cards and loans to your repayment record, previous mortgages and details of overdrafts.

The report also confirms whether or not your name is on the electoral roll at your current address and how many times your credit report has been searched.

Credit reference agencies – Experian is the UK’s largest – hold this data on more than 40 million people and 24 million households. So it’s likely that they have information about you.

Click here to view your Experian credit report online for free and see the information mortgage lenders see

Making a decision

When deciding whether or not to give you a mortgage, the mortgage lenders look first at the details on your application form. If you don’t fit their criteria for being offered a loan, they are unlikely to search your credit report. Typical deal-breakers include being too young, insufficient current earnings or too short a self-employment history.

  • They may then look at any previous relationship that you may have had with them and how you conducted it.

The next step is to search your credit report. A lender may use this information to help create your credit score, by comparing you to past customers with similar characteristics. The result is a numerical assessment of how good a credit risk you appear to be. Normally, the higher your rating, the more likely the company is to lend you the money you want.

  • Getting a copy of your report before you apply for a mortgage will allow you to check that the information it contains is accurate and up-to-date.

For example, if you had a court judgment against you but have paid the debt, you should make sure the record reflects this. Equally, if you paid off the debt within one month, the judgment can be removed from your report. Or perhaps the fact that you registered to vote has been missed and your name has not been confirmed on the electoral roll. In this case, you should let Experian know. They will investigate and amend their records accordingly.

If you believe that some of the information on your credit report needs further explanation, Experian will help you to add a brief statement or Notice of Correction to your report. This will be seen and may be taken into account by any lender using the information to which it relates.

Click here to view your Experian credit report online for free and see the information mortgage lenders see

If at first you don’t succeed

Lenders turn down roughly one-third of all mortgage applicants. If you are one of the unlucky ones, you should be given an explanation. If not, ask for some guidance.

  • For example, you may not be offering enough deposit or appear to be carrying too much debt from other sources. It may be that your credit report rang alarm bells, perhaps because you had missed some payments on a previous loan.

You can always appeal against the decision and ask the lender to look at your application again. This may give you chance to provide further information. For example, your poor credit record may stem from a one-off event that no longer applies, such as a serious illness or enforced redundancy.

  • Finally, there’s nothing to prevent you applying for a mortgage from another company. Different lenders may take a different view. But be careful how many applications for credit you make in the short term.

If you allow a significant number of companies to search your credit report, this could damage your credit rating as it could be interpreted to mean that you are desperate for money or possibly that someone is trying to commit fraud. If you know that you have been refused credit because of your credit report, it is always sensible to check it before making any further applications.

Click here to view your Experian credit report online for free and see the information mortgage lenders see

No nasty surprises

To help avoid any nasty surprises, you can keep tabs on your credit report by signing up for a free, 30-day trial of CreditExpert, an online credit monitoring service from Experian. It means that you can check your credit report at any time – invaluable when you are applying for a mortgage, when you often need to move fast. You will also be warned by a weekly email or text message when a significant change, such as a new search, is registered.

  • Joining CreditExpert also allows you to order a copy of your Experian Credit Score at the special offer price of £5.95. It only uses the information in your credit report but it will give you a good idea of how lenders will rate you.

And if you need to improve your credit report, the CreditExpert site contains plenty of advice, hints and tips that will help you to turn your dream home into reality.

Click here to view your Experian credit report online for free and see the information mortgage lenders see

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Improve Credit Score without Money in the Bank

On July 4, 2010, in News, by Lewis Alexander

  • Did you know it was possible to improve your credit score without actually having much funds available in your personal bank account?
  • It is even possible to obtain a good credit score after having a bad credit rating, when living in and out of a personal overdraft!

To increase your credit score or improve your credit rating you need to pay any credit account you have on time and make sure your payments are for the correct amount. It does not matter how much money you have in your bank account. It is as simple as that, if you are struggling with credit accounts get rid of them where possible.

 Start a fresh and gain control on a monthly or weekly basis!

free credit report UK from ExperianCar finance and all other types of credit agreements are listed on your credit report so it is important too keep up with all agreements not just the ones that are important to you.

Most people suffer from a bad credit score due to not being able to keep up with regular monthly repayments, some months they encounter extra unexpected living costs, such as motor breakdowns and domestic appliance problems.

  • These tend to need immediate attention which costs and these costs are what tend to set the individual back.

When payments are then missed for credit accounts, the credit companies are duty bound to update the credit reference agencies monthly such as Experian and Equifax.  These credit reference agencies keep your credit file up to date so that when you apply for any borrowings or credit, the lender you are applying too has the right with your permission to search your credit file for any information they may require to either approve, or decline your application.

  • When an application for credit is refused or turned down, the lender is under no obligation to tell you why.  This can often offend people but the policy not to disclose the reason for decline is normal practice within the credit industry.

If you have never seen a copy of your credit report, it can at first take time to understand.  Once you have seen it you will feel more comfortable looking at it next time you need to, and so on.  It is important to keep a check on your credit report as this can inform you of any searches that have been made in your name without your awareness.

Credit Expert from Experian is the most well know of the credit reference agencies that allow you to view your credit report online.  They offer a free 30 day trial.  This is a trading name or brand of a company called Experian who advertise on Television, you may have seen the credit expert TV adverts.

Lenders use different parts of your credit report to assess if they are able to lend to you, this differs from lender to lender.  If you make multiple applications for credit and get refused within a short period of time, say one day to a week or even within one month, you can reduce your credit score that way, so be careful when applying for credit.

Prospective lenders do not like to see many refused applications for credit within your file over a short period of time, it can show that you are desperate to obtain the credit and this can worry a lender.

If you need advice regarding clearing personal debts after suffering a bad credit history, you can call our personal debt helpline 24 hours a day in total confidence using 0800 018 6868.

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