Why it's important to keep track of your Credit Score

In this article we look at why it’s important that your credit score and file are in good health if you want to apply for a mortgage.

At Manchester Mortgages we receive 100’s of enquiries of clients looking to buy their first property, from clients looking to move home to people looking to remortgage their property (for various reasons).

Due to the current financial situation the country finds itself in because of Covid 19 it is important that people keep a check on their credit profile and what Financial Institutions like Banks, Building Societies, loan providers, mortgage lenders and particularly Utility (including mobile phone providers) record the information they hold about you.

Typical example is that you have changed mobile phone provider and there may have been an outstanding monthly payment that was due but because you had cancelled the direct debit the mobile phone provider could not collect the payment and this will potentially show as a missed/late payment which could then ultimately be a default or CCJ on your credit file.

Or it could be that you have moved house and by an oversight forgot to tell you utility provider you were moving house and there may be a outstanding debt that needs to be paid which again will show as a late payment, default or even CCJ.

These may seem trivial but it may mean that if these have been registered within the last 6 years it could stop you from getting a mortgage or mean that your options are limited dependent upon the size of the deposit you have available.

So what can you do ?

You can check your credit file with various credit reference agencies like Experian, Equifax and Transunion. There are other credit reports like Clearscore however they tend to provide limited information.

Our research would suggest the best credit report to obtain is Checkmyfile. This report takes information from the major credit reference agencies and shows the information lenders will actually see and what they make their decisions on.

However, even after obtaining the report reading it and understanding what lenders take from the report can vary.

Therefore you need to speak with a mortgage broker who can help you obtain your report and more importantly help you understand what it means.

Manchester Mortgages has been arranging mortgages for in excess of 50 years and are here to help.

For a FREE mortgage consultation call us on 0161 706 0242 where a adviser will help you understand what options are available to you.