When you apply for a mortgage, it is important to limit the number of credit checks which you have done. All lenders have different criteria, and it is important for you to have a good idea of what your credit file is like prior to applying for a mortgage, or any other credit.
Obtaining a copy of your credit file can show the following information
- Details of your addresses in the last six years
- Any late payments on any credit products within the last 36 months
- Where you have been registered on the votors roll for the last six years
- Any missed payments on any credit products within the last 36 months
- Any defaults or county court judgements which have been registered - it also shows if these have been settled or not.
- Any bankruptcy orders which may be in place.
- Any credit searches which have been done in the last two years
- Outstanding balances on outstanding credit commitments, and the agreed monthly repayment
- The credit file can also show if any fraudulant activity has been noted - ie incorrect information on application forms
- Who you have financial associations with (for example joint account holders)
A credit search is done on the person, and not on the property, unless you share the same name as somebody else at the same address. Then the details may get intermingled. Many companies report the conduct of their clients accounts to credit reference agencies, whether good or bad, and this helps the lenders make a decision, as they can get access to all of the details held on the file.
The types of companies who may register information with a credit reference agency, are Banks, Building Societies, Mortgage Lenders, Loan and Finance Companies, Credit Card companies, Mobile Phone Companies, Car Finance Companies, Store Card Providers, Utility Companies, Catalogue and Mail Order Companies, Also, it is likely that if any organisation not listed above registers a County Court Judgement or Default against you, this will be shown here.
We have teamed up with experian, who can provide a free online credit report, which may help you decide which lender to use when you apply for credit. This may help preserve your credit rating. By joining their credit expert plan, and taking advantage of their 30 day free trial you can access your credit report for free. (Should you not wish to continue after the free trial period has finished, then please remember to cancel your subscription.
To access your copy of your experian report, please click here.