Credit where credit’s due is a nice saying when it works. Unfortunately, for some of us, buying a home is made more difficult because of a poor credit history.
In some ways this isn’t surprising. A home is undoubtedly the biggest financial investment we will make and so making sure we don’t lose money or bricks and mortar makes sense.
Thankfully, there are ways to combat bad credit and boost your chances of moving into a dream property from s1homes.
Where are you right now?
First things first. Get a copy of your reports from all three credit reporting agencies: Equifax, Experian and Callcredit.
These contain huge amounts of information. However, mistakes can be made and these errors can halt mortgage applications.
So examine your files carefully to make sure nothing’s wrong.
Plan far in advance
When getting a new mortgage, it’s worth starting to manage your credentials at least a year in advance.
It can take time to get all the right boxes ticked and going in too early can jeopardise an application.
As well as checking your reports are accurate and sorting any inconsistencies, register to vote. You can do this at any time on Gov.uk.
Most banks expect this as a must.
Pay on time every time
Nothing hampers a mortgage application quite like a record of missed payments. These may be simple oversights but they still throw up rather big red flags.
The easiest solution to make sure you don’t forget to set up direct debits, then you’ll never miss payments or be late.
Pay your rent, boost your score
Renting while saving for your own home? Well, by using the Rental Exchange Initiative, millions of private renters and social housing tenants can make paying their rent on time to boost their credit rating.
Launched in March 2016 by credit reference agency Experian and The Big Issue Group, it records rental payments (in the same way it would mortgage payments), which are then added to your Experian credit file.
Fill out forms carefully
Application forms show lenders the crucial details of your postcode, income, family size and whether you’re already a homeowner.
Any inconsistencies in this information, however small, could mean “computer says no!”.
So don’t alter things on different forms such as your job title – putting painter rather than decorator.
Finally, we always recommend using an independent financial or mortgage adviser to get the best advice. Their services are regulated and their mission is to get you a clear way ahead as well as the best deals.
When it comes to checking the best properties available, there’s always s1homes.