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Poor credit score and current mortgage rate expiring.

Last post Mon, May 19 2008, 7:37 PM by keelylewis. 2 replies.
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  •  Sun, May 18 2008, 2:08 PM

    Poor credit score and current mortgage rate expiring.

    I had been looking at your forum and rate comparisons I decided to get my credit report and score from experian. I'm a bit of a shopper and have 2 or 3 credit cards , the odd mail order account , a car loan and obviously my mortgage. My actual credit report looked good only 1 late payment in last 12 months and this was only 1 month late ( I never miss more than 1 month even if I do forget occasionally>) so I confidently went in to get my credit score . I was horrified to find I have a very poor score of 550. I don't understand how this can be the case if my report is good- I have never missed a mortgage or loan payment ever!! My report said I was only using 26% of my availabl credit but my score factors said I have alot of credit that amounts to a large amount ( it was 10,000) and I have some late payments .

    MY fantastic mortgage rate of 4.15 runs out in August . I wanted to consolidate my other bits and bobs and remortgage but now I am really worried that ths will not be possible. Should I just contact my lender and try and get a discounted rate for a while , allowing rates to change and my credit rating to improve ( although I have overstretched myself recently thinking I'll just consolidate when I remortgage) . I know having several credit checks also lowers your score. I am now really worried?? Also do most lenders loan 3 x or 3.5 times your salary, for a single application?

    Just as a matter of interest I have moved twice in 6 years and only stayed in my previous house for 1 year - could this account for alot of my rating or not ( although this wasn't mentioned on my factors and there is nothing I can do about that anyway??)

    Please help ??

    • Post Points: 20
  •  Mon, May 19 2008, 7:03 PM

    Re: Poor credit score and current mortgage rate expiring.

    Its the result of the credit cruch, if you have a large amount it shows you as bad just the same not really fare I know.
    • Post Points: 20
  •  Mon, May 19 2008, 7:37 PM

    Re: Poor credit score and current mortgage rate expiring.

    Thanks for your reply .

    Is there anything I can do about it and will it affect me getting a remortgage deal?? Can I change anything in the next few months?? I have made and appontment with my current lender to see what they can offer but generally I know you don't get the best deals staying with the same lender.

    I do have about 50,000 equity in my home so I'm hoping I will be able to add the 10,000 on to my mortgage but not sure now what will happen .

    • Post Points: 5