How to Improve Your Credit Score in Newcastle

Maintaining a good credit score is essential when applying for a mortgage, as it demonstrates to the mortgage lender that you are a responsible borrower and can manage your finances well.

A credit score is a numerical representation of your credit history, taking into account your payment history, credit, length of credit history, and types of credit accounts.

As a first time buyer in Newcastle, it’s important to check your credit score before applying for a mortgage. You can obtain a copy of your credit report for free from credit reference agencies like Experian and Equifax.

It’s a good idea to review your credit report and check for any errors or discrepancies that could negatively impact your score. If you have a low credit score, it may be more difficult to get approved for a mortgage, or you may be offered a less favourable rate of interest.

That said, it’s still possible to get a mortgage with a low credit score. You will need the help of a trusted and dedicated mortgage advisor in Newcastle, however, who can help you understand your options and find a lender that is willing to work with you.

In addition to maintaining a good credit score, there are other factors that mortgage lenders will consider when assessing your application, such as your income, employment history, and the amount of deposit you have available.

At Newcastlemoneyman, our experienced mortgage advisors in Newcastle can help guide you through the mortgage application process, including checking your credit score and finding the most suitable mortgage deal for your individual circumstances.

We work with a wide range of mortgage lenders and can help increase your chances of getting approved for a mortgage, even if you have a low credit score.

Keep Credit Searches to a Reasonable Amount

During the mortgage application process, it’s important to be aware of the impact of credit searches on your credit score. Mortgage lenders may conduct either a hard search, which is more detailed and may impact your credit score, or a soft search, which has no impact on your credit score.

It’s also worth noting that price comparison sites may conduct their own credit searches, which could further affect your credit score. It’s recommended to be cautious when using such sites and to avoid applying for additional credit during the mortgage application process.

While having a credit history and making regular repayments can have a positive impact on your credit score in the long run, it’s a good idea to cancel any unused credit cards.

This can streamline your finances and prevent the amount of credit you have from working against you when it comes to the mortgage application process.

Check You Are on the Voters’ Roll

Being registered on the electoral roll is a key factor in improving your credit score and increasing your chances of getting approved for a mortgage.

This is because it shows mortgage lenders that you have a level of personal stability and a permanent residence. By being registered, you are confirming your identity and address, which helps prevent fraud and identity theft.

It’s important to ensure that your details are correct and up to date on the electoral roll, as errors or inconsistencies can negatively impact your credit score. You should check that your name is spelled correctly and that your address is accurate and complete.

If you’re not already registered on the electoral roll, it’s a simple process that can be completed online in just a few minutes. You can visit the official government website to register, and you’ll need to provide some personal information, such as your name, address, date of birth, and national insurance number.

Once you’ve registered, it’s important to keep your details up to date, especially if you move house or change your name. You can update your details online or by contacting your local council’s electoral registration office.

Overall, being registered on the electoral roll is a small but important step towards improving your credit score and increasing your chances of getting approved for a mortgage. It’s a simple process that can be completed quickly and easily, and it can make a big difference in your financial life.

Know Your Maximum Limit

Using a credit card can be a convenient and efficient way to manage your finances. It can also be beneficial for your credit score if used responsibly. That being said, it is important to avoid maxing out your credit card as this can negatively impact your credit score.

If you constantly max out your credit card each month, mortgage lenders may see this as a red flag and view you as a high-risk borrower. This can lead to a rejection of your mortgage application or result in you receiving less favourable interest rates.

On the other hand, if you have a higher credit balance and are not using too much of your available credit, it may seem like you are being responsible with your finances. This may not always be the case, however.

Mortgage lenders will also assess your ability to make repayments and manage your finances responsibly. If you have exceeded your agreed card limits or gone into overdraft, it may signal to mortgage lenders that you are not financially responsible.

In summary, using a credit card can be beneficial for your credit score, but it’s important to use it responsibly and avoid maxing out. Mortgage lenders will look at your overall financial situation and assess your ability to manage your finances responsibly before approving your mortgage application.

Check Your Address History is Keyed Correctly

Having outdated or inconsistent address information can create confusion and raise red flags for mortgage lenders.

If you have failed to update your address everywhere, it may give the impression that you are living in two different places at the same time, which can be a cause for concern for lenders.

It’s important to keep your address information up to date not only on official documents such as your driving license, but also with all of your creditors, such as credit card companies, banks, and utility providers.

Inconsistencies or outdated information can cause delays or even lead to a rejection of your mortgage application.

When updating your address information, make sure to spell everything correctly and include the full address, including apartment or unit numbers if applicable.

This can be especially tricky if you have previously lived in a flat or apartment, as the address format may vary depending on the system used by different lenders or credit reference agencies.

To avoid any potential issues, it’s a good idea to double-check all of your address information with each creditor and credit reference agency, and to make sure that all of your accounts are linked to the correct address.

Keeping your address information consistent and up to date will help to ensure a smooth and successful mortgage application process.

Keep Up to Date with Credit Accounts

To ensure the security of your finances, it’s recommended to close any older credit cards or store cards that are no longer in use. Contacting the providers and closing these accounts will streamline your finances and minimise the risk of fraud.

It’s important to note though, that closing these accounts may have a short-term impact on your credit score, as the mortgage lender won’t be able to see who initiated the account closure.

This could raise some initial concerns for the mortgage lender, as it’s possible that the account was closed by the provider rather than you.

In the long run, closing these accounts is still the best option as it helps to prevent any unauthorised activity on these accounts.

Additionally, having too many open accounts can also negatively impact your credit score. Therefore, it’s best to keep your accounts to a minimum and only keep the ones that you use regularly.

Look Out for Financial Ties to Others

Having financial ties with family members or ex-partners can negatively impact your credit score. If the other party fails to make payments, your credit score will be affected due to the shared financial responsibility.

Removing the financial association is important to protect your credit score. Whilst this is the case though, this may not be possible to do so if the account is still active. In such cases, contacting the credit reference agencies and requesting to remove the association is crucial.

The sooner you remove the financial link, the better it is for your credit score. It is essential to keep your credit report up to date when applying for a mortgage, especially if you are a first time buyer in Newcastle. This increases your chances of getting approved for a mortgage.

While some customers may view credit scoring as an unfair way to evaluate applications, it simplifies the process for mortgage lenders and provides consistent outcomes. It is a cost-effective and reliable way to assess applications.

To streamline your mortgage application process, provide your specialist mortgage advisor in Newcastle with as much relevant information as possible. This allows them to provide you with the best deal available, increasing your chances of a successful application.

Last edited 15/03/2023