Do you pay your debts back on time?
The credit rating and credit score, it’s a bit like a mythical beast with many wild rumours doing the rounds.
- Too many checks hurt my score?
- My score is 999 but I have been declined
- I have no credit therefore I am penalised.
Your credit score and credit rating are two different things but the terms are used interchangeably, your credit score is individual to the lender you are looking to borrow your money from. Lenders award points to you for certain traits.
Lender A may have had bad debts from a certain profile of customer in the past for example someone who has only been self-employed for 18 months. If this is the case they will apply a negative weighting to your score, if this is coupled with something else they deem negative such as having a small deposit and not paying a loan back on time you may not hit the desired threshold of points for them to grant you a loan.
A credit report is a very valuable tool when applying for a mortgage; you can download yours for free at the following website (www.transunionstatreport.co.uk), or register with one of the paid services such as credit expert or Equifax.
Lenders never divulge their credit scoring system mainly as it is computer generated so you never know if you will be accepted or rejected until you try.
However, Bluebell Mortgages are an experienced Suffolk based mortgage advisor and have a detailed knowledge of lenders criteria which proves invaluable when knowing who to approach and who to avoid.