How to Improve Your Credit Score in London?

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<strong>Improving your credit score</strong>

Avoid unnecessary credit searches

Avoid credit applications

Register on the voter's roll

The importance of updating your address

Don't run too close to your maximum limit

Remove financial links to others

Credit Score Mortgage Advice in London

A credit score is a numerical expression based on a level analysis of a person’s credit files to represent an individual’s creditworthiness. Lenders use this numerical expression to determine your affordability for a mortgage, loan, credit card, and the rest. Although different lenders have different credit scoring criteria, the credit score listed on your file will usually range from 300-800+.

Credit score criteria

300-580 – This is an example of a poor credit score, and having a credit score like this may minimise your chances of being accepted by a lender.

580-670 – A score like this is deemed fair, and some lenders may be more lenient with you when you have a score alike.

670-740 – This is a good score, and your odds of being accepted will be high if you have this score on your credit file. We tend to find that this is usually the average credit score range.

740-800 – This score is excellent. A score as good as this will put your chances even higher of being accepted.

800+ – If you have a score that’s 800+, that is a perfect credit score. Your chances of being accepted are well above average; well done!

If you have a credit score above 670, a lender will likely see no problem lending to you. On the other hand, if your score is less than 670, you may struggle to get the competitive deals that other applicant’s with a higher score are accessing.

Reasons why your credit score may be lower

Our team of Specialist Mortgage Advisors in London have dealt with an extensive array of cases daily. It’s often the case that mortgage applicants come to us after being declined by their bank due to a low credit score or something similar. Their job is to step in and assist wherever they can to get your application mortgage ready.

There are various reasons why you could have a low credit score. The most common understanding that we come across is that the applicant is the subject of a county court judgement (also known as a CCJ). If you fail to repay a loan/borrowed money, you will likely get a CCJ.

A CCJ can leave a harmful impact on your credit file for up to six years or more. We strongly advise that you make sure that you pay off your debt before applying for credit. It will surely pop up on your file, and the lender will start asking questions.

Neglecting to stick to credit agreements can be bad too. Anything like failing to keep up with a Mobile Phone contract can cause damage to your file. It’s the little things like this that can cause substantial damage. For example, dipping into your maximum arranged overdraft every month could cause a long term adverse effect. Even using loads of price comparison websites can sometimes affect your score.

Poor credit score? Don’t Panic

These are just a few things that could negatively impact your credit rating, and there are lots of other reasons why you could have bad credit. However, our mortgage advisors in London job is to help you develop your score, so you get the chance to move into your dream property!

There are multiple ways to improve your score. But the most crucial part is not to give up just because you have a low score because it’s still possible to secure a mortgage in some cases.

Improving your credit score in London

Trying to improve your credit score can be a challenging task, that’s why we hope that this handy guide can give you some indication on how to improve it. We must inform you that every lender has there very own lending criteria, so your score may impact what deals you can access.

Additionally, it also means that just because you have an excellent score doesn’t mean that you’ll match every deal. It’s sometimes down to personal circumstances. It’s all up to your lender and their criteria.

Avoid unnecessary credit searches

Every time you go directly to a lender and their in-house mortgage advisor puts you through for a deal, they will perform a soft or hard credit search on you, and this search will leave an imprint on your credit file. If your application gets declined for any reason, the credit search performed could harm your credit score. Multiple searches may lower your chances of getting accepted for a mortgage in the future.

Avoid credit applications

Applying for credit can sometimes ricochet on you, especially if you don’t have a reason for doing so. If you can pay back the credit that you’ve borrowed, it may look good on your application. However, flip the situation on its head, and your credit score could end up in trouble if you fail to meet the credit payment deadline.

During your mortgage application, we strongly advise that you hold off applying for credit. In some cases, you may be able to get away with it, but lenders may believe that you are struggling for money in other scenarios, they could think that you are putting it towards your deposit or using it to aid your mortgage payments.

Here at Cambridgemoneyman, we aim to get it right the first time, which means that we will take a look at your credit score and only approach lenders that hold criteria that we know you’ll pass.

Are you registered on the voter’s roll?

Here’s an easy way to improve your credit score; make sure that you get registered on the voter’s/electoral roll. Being registered on the roll shows that you are who you say you are. All you need to do is go to the government’s electoral roll page, and it’s easy to get registered from there. Additionally, this could be a great way to boost your score.

You must provide accurate information when registering on the voter’s/electoral roll, ensuring that everything gets filled out correctly. You will need to use your current living address, not your previous address.

The importance of updating your address

We always recommend checking that all of your accounts and details get linked with your current address during the mortgage application process. Additionally, this won’t affect you as much if you are a First Time Buyer in London and this is your first application.

However, if you are Moving Home in London from rented accommodation and you still have your parents address linked with any of your accounts, your lender will pick up on it straight away. That’s why it’s essential to change your addresses and make sure that it’s up-to-date before applying. Being linked to the wrong address could impact your credit score.

If you go down the broker route, your Mortgage Advisor in London will help you out with this step. They will make sure that everything is updated with you to ensure that you have the best chance possible of being accepted for a mortgage.

Don’t run too close to your maximum limit

Maxing out your credit card(s) each month will heavily impact your credit score. Your lender will like it if you can pay off your credit card balance each month as it shows that you can manage your money.

If a lender can see that you are exceeding credit card limits and always dipping into your overdraft, they may think that you don’t take your finances seriously.

Remove financial links to others

If you are still financially linked to an ex-partner or family member, your credit score could be getting harmed without you even knowing. If the account is still active and live, you won’t be able to remove your links. The only way to remove your connection is to get in touch with the credit reference agencies and make a request.

Is it all about your credit score?

Depending on the lender and how strict their lending criteria is, they may be lenient and allow some wiggle room. If there are some personal reasons involved, your lender may be considerate and factor them into your application, and it’s entirely up to them what they do.

A Mortgage Broker in London like us will always be transparent with you and factor in every bit of detail. Even if you have a score on the lower end of the spectrum, our hardworking team of Mortgage Advisors in London are determined to secure you a deal that will suit you.

We have access to specialist mortgage deals through our vast panel of lenders; we are sure that we will find one that matches your mortgage needs. If you need further assistance or Credit Score Mortgage Advice in London, feel free to get in touch with our team.

Date Last Edited: January 19, 2023