How to Improve Your Credit Score in Manchester

The general guideline, whether you’re a first time buyer in Manchester, home mover in Manchester, or aspiring to be a landlord of a buy to let in Manchester, is that a higher credit score increases your likelihood of mortgage approval.

It’s important to bear in mind that mortgage lenders establish an internal credit score based on the data in your credit report and your application.

Each mortgage provider follows its own credit scoring policy. Therefore, if one high street bank rejects your application, it doesn’t necessarily mean that all mortgage lenders will do the same.

Regarding which credit reference agency a mortgage lender employs, this information is not always disclosed, although mortgage lenders may alternate between companies such as Experian and Equifax.

It’s smart to use a tool like Check My File as a means of reviewing your own credit score, as this combines data from multiple sources, to give you a better look at your history. People who sign up will receive a free 30 day trial, that can be cancelled at any time.

Top Tips to Improve your Credit Rating:

Stop Unnecessary Credit Searches

Before you’ve registered with a credit reference agency to assess your score, your initial step should be refraining from applying for new credit.

It’s important to exercise caution, as even seemingly innocuous actions like comparing car insurance quotes on a price comparison website can trigger unintended credit searches.

Are you on the voters roll?

Mortgage lenders utilise the electoral roll for identity verification, making it an essential process. It’s vital to ensure your name is accurately spelled and that you’re registered at your present address. Your credit report will indicate whether you are registered, and you can also verify this with your local council.

Active Credit

Mortgage lenders value the presence of “active credit.” Having a credit card that you use regularly and fully pay off each month can be beneficial in the long run. Keep in mind that acquiring new credit might lead to a temporary negative effect. It’s crucial to avoid missing any payments!

Don’t Run Close to Your Maximum Limit

Consistently approaching your credit card limit or surpassing it can negatively impact your score. Excessive utilisation of your available credit can have adverse effects on your credit score.

Check Your Address History Gets Keyed Correctly

It’s important that you avoid any appearance of dual residence. This situation can arise from incorrect entry of start and end dates for past addresses.

Taking the time to carefully review dates and ensure address formats are uniform is advisable. This can be a bit challenging, especially when dealing with flat or apartment living.

Close Any Unused Credit Accounts

Consider cancelling any inactive credit or store cards you may have. Remember that this action might temporarily impact your score.

Although the systems can’t differentiate between your decision and that of the lender, this practice can prove beneficial in the long term. Additionally, it reduces the risk of falling victim to fraud in case the cards are ever stolen.

Check Your Account Addresses Are Correct

Make sure that your current address is linked to all your open accounts, rather than any previous addresses.

Remove Any Previous Financial Links

If you share joint accounts, a mortgage, or a loan with an ex-partner, their financial behaviour could affect your credit. Inform the credit reference agencies of the dissolution of these associations and ensure any links are removed.

Whether you welcome it or not, credit scoring has become an integral part of the lending landscape. It holds considerable sway over your mortgage eligibility. Mortgage lenders find it expedient to rely on their systems for consistency, streamlining the process compared to human-based assessments.

Making sure your mortgage broker in Manchester has an updated copy of your credit report offers a comprehensive view of your financial standing. This enables them to recommend the most suitable mortgage for your unique circumstances.

Last Edited 25/08/2023