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How to Improve your Credit Score in Birmingham

Credit Score Mortgage Advice in Birmingham

A credit score is a series of numbers that lenders use to help decide whether you get accepted for a mortgage.

Using the information displayed, lenders will look at your credit report, application form, plus any additional information they hold on you (if you are an existing customer). All this data gets used to calculate your credit score representing your credit history mathematically.

It can help Lenders indicate what kind of borrower you are and how likely it is to manage your repayments. There’s no specific number when it comes to your score. Different Lenders will be looking for other things in potential customers, so you may be better off with another while you may be not ideal for one lender. 

Knowing Your Credit Criteria

🏠 300-580 – If your credit score is at this standard, lenders will classify it as a poor score; having a score like this will lessen your chances of a lender accepting your mortgage application.

🏠 580-670 – Having a credit score like this is considered fair, and some lender may be more lenient with accepting your mortgage application. 

🏠 670-740 – This is a much better score and helps increases your chances of having your mortgage application accepted. We tend to find that most customers tend to fit into this category.

🏠 740-800 – This is very good! A score as good as this will increase your chances of having your mortgage application accepted. 

🏠 800+ – Having a score that’s 800+ is exceptional; you have increased your chances of having your mortgage application accepted above average; congrats! 

Generally, the higher your score, the better your chances of being accepted for your circumstances ‘best’ deal.

Reasons Why Your Credit Score Dropped?

Don’t think you are the first; often, countless customers come to us after being declined for having a ‘low’ credit score. As a Mortgage Broker in Birmingham, we have to deal with these sorts of cases daily. We come across that the applicants are the subject of a county court judgment (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 severe dint on your credit file for 6+ years. The best course of action is to pay off your debt before applying for credit. The CCJ will undoubtedly pop up on your file, and the Lender will start asking questions. Sometimes the little things can cause damage too, for example:

🏠 Failing to stick to credit agreements.

🏠 Failing to keep up with your mobile phone contract payments.

🏠 Dipping into your overdraft every month.

🏠 Using multiple price comparison sites.

Here we’re just a few things that could negatively impact your credit rating; there are many other reasons you could have bad credit. In any situation, it’s our job to help you improve your score, so you get the chance to have your mortgage application pass the Lenders criteria! There are various ways to improve your score to try and get you up into that next bracket, and the good news is it may still be possible to secure a mortgage in some cases!

Credit Score Mortgage Advice Birmingham | MoneymanTV

Look at Ways to Improve Your Credit Score

Trying to improve your credit score can be a time-consuming task, but with the help of this handy guide, you may be able to go up another bracket. We must warn you that each Lender has their individual lending criteria, so your score may impact what deals you can access. Just because you have an excellent score doesn’t mean that you will tick every Lenders boxes. It’s sometimes down to personal circumstances and up to your Lenders criteria.

1. 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 is 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. With the help of a Responsive Mortgage Broker in Birmingham will come in handy we aim to get it right the first time. We will look at your credit score and only approach lenders that hold criteria we know you will pass.

2. Avoid Credit Applications

Applying for credit can sometimes backfire 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.

3. Are You Registered on The Voter’s Roll?

Here’s a beneficial and easy way to improve your credit score; make sure that you are registered on the voter’s/electoral roll. Being registered on the roll shows that you are whom you say you are. All you need to do is go to the government’s electoral roll: it’s easy to register from there.

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.

4. The Importance of Updating Your Address

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

However, if you are Moving Home in Birmingham 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. This is why it’s essential to change your addresses and make sure they’re up-to-date before applying. Being linked to the wrong address could impact your credit score.

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

5. 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 constantly dipping into your overdraft, you may think you don’t take your finances seriously.

6. 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 clear your connection is to get in touch with the credit reference agencies and make a request.

7. 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; it’s entirely up to them what they do.

A Mortgage Broker in Birmingham 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 incredible team of Mortgage Advisors in Birmingham is still 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.

Birminghammoneyman.com & Birminghammoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
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