Tue 20 Oct 2015
Did you know maxing your credit card limit even if it is as small as £200 can effect your credit score and increase the amount you pay on your mortgage rates?
TAKE A LOOK AT RICHARD'S TOP TIPS TO AVOID AN UNHEALTHY CREDIT RATING:
Having a healthy credit score is key to obtaining the best mortgage deals. Different factors can have an effect.
The key things to be aware of are:
Register to vote! You need to be on the electoral register, or it will seriously damage your score (you’re also breaking the law if you don’t).
Set up direct debits for all credit commitments. Even if you only make the minimum payment, it is much better than having a missed payment recorded.
Don’t max your credit card - It is actually a good thing for your credit score to regularly use a credit card but make sure payments are on time and try not to use more than 50% of what’s available so you so you appear to have access to emergency credit should you need it.
Address history - Having too many addresses in a short space of time will reduce your credit score. Also make sure you notify anyone you have credit with that you have moved and provide the new address.
Not too many searches - Every application for credit, be it a mortgage, credit card or mobile phone involves a credit search. The more of these you have in a short space of time the lower your score becomes as you will appear “credit hungry” to a new lender.
If you need any advice at all or are looking for the best mortgage deal get in touch with me, I'm more than happy to help.
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