Your credit score is used by lenders to assess your ability to meet repayments on loans, mortgages, credit cards, and other financial products. Therefore, a good credit score increases your likelihood of being able to access these products, and to achieve a good deal when you do.
When seeking out advice on applying for a mortgage, one of the first things you will be told is to check up on your credit score. However, not everyone has a perfect track record with their finances, and sometimes this is through no fault of their own. Unfortunately, adverse events such as missed payments and debt stay on your file for six years.
This doesn’t mean you should give up hope however, as there are some quick simple steps that you can take right away for a future improvement. Firstly, check over your credit reports to make sure they are accurate and up to date. Pull a report from the major credit reference agencies in the UK, which are Experian, Equifax, and TransUnion.
This can be done for free via the AnnualCreditReport.com website, and others such as ClearScore. If there are any inaccuracies, raise a dispute with the reference agency. In your letter or email, identify the error clearly, including any account numbers, explain why you are disputing it, and provide any evidence which supports your argument.
The credit agency is obliged to investigate your dispute, and contact you with the results. If the error is corrected by the agency, contact the other major reference agencies notifying them of the finding.
This might seem like a lot of effort, but it won’t take up more than a few hours of your time, and it could bring huge rewards in the future. Even something as small as a spelling mistake which leads to confusion over your address or identity can have an impact, so it’s really worth doing.
If you are looking for a bad credit mortgage broker in the UK, please get in touch today.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Create Finance Limited is an appointed representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
Create Finance Limited. Registered Office: 35 Friar Gate Studios, Ford Street, Derby, Derbyshire, England, DE1 1EE. Registered in England Number: 09582938.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
We may receive commission that will vary depending on the lender, product or permissible factors, The nature of any commission model will be confirmed to you before you proceed. Create Finance Ltd are a credit broker, not a lender.