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Why is my credit score so low?

Last post Fri, Feb 09 2007, 8:44 AM by hanson. 4 replies.
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  •  Fri, Feb 09 2007, 8:44 AM

    Re: Why is my credit score so low?

    Hello Jase

    The e-mail address is the standard but it shows as AT in my reply. If you replace the AT with the normal symbol then it should be okay. Once we receive this I can offer suggestions on improving your rating.

    Regards

    Hanson
    • Post Points: 5
  •  Thu, Feb 08 2007, 10:14 PM

    Re: Why is my credit score so low?

    Hi Hanson & Louise

    Thankyou very much for posting me. I tried to email my report to you Hanson but having difficulty because of the format?? The fact that I had difficulty obtaining the mortgage isnt a big issue now as i'm happy renting at the moment. But I am interested as to how I can improve my rating, any ideas?

    Jase
    • Post Points: 20
  •  Thu, Feb 08 2007, 9:38 PM

    Re: Why is my credit score so low?

    Hi e_jase

    Most Lenders will build their 'score card' differently, based on statistically analysis of their own customers for either mortgages, loans or credit cards. The kind of credit indicators that could be taken into consideration are things like time on electoral roll, type of occupation, residential status, conduct of credit, outstanding credit, whether credit card balances are up to the limit, if limits have been exceeded, whether there is a bank guarantee card, how long a customer has had a bank account and, as our visitor stated, search activity. So a missed payment and search activity certainly would not help.

    There are so many factors that build up a score that it is impossible to give one reason - however, if your mortgage broker actually made full credit search approaches to 5 Lenders that would certainly have a bearing. My question would be why did that happen? An advisor would normally take full details of your financial circumstances, understand your current and future requirements and then recommended ONE mortgage product suitable for your needs. Only if the first Lender declined your application would an approach normall be made to an alternative Lender, with your express agreement for a further credit search.

    I would approach your mortgage broker with this question.

    Louise
    • Post Points: 5
  •  Thu, Feb 08 2007, 5:52 PM

    Re: Why is my credit score so low?

    I am afraid that your mortgage broker may not have done you any favours. Every time a search is done by a potential lender your credit score falls. This should (in fact it is a must) have been explained to you before you gave permission for a search to have been caried out. If you really want help I can have one of our mortgage specialists look at you credit file which you could e-mail to me. It may be that it is something other than the amount of searches that have been done. If you are looking for a mortgage then there are quite a number of mainstream lenders that will look at this for you and discount the searches that have been done. This should resolve your problem
    The e-mail address is kmcrea AT hansonwealth.co.uk if you need any further info.

    Hanson
    • Post Points: 20
  •  Thu, Feb 08 2007, 2:04 PM

    Why is my credit score so low?

    I have recently looked at my credit file online with Experian. My score is 'Very Poor' at 309!!! I have a good bank account and couple of credit cards ( I missed a payment 3months ago, but ok for 3 months). I have no CCJ's and havent been bankrupt. Ive been living at my current address for nearly 4 years as a private tennant on the electoral role, pay all my utility bills on time and am in full time employment on a good salary. There has been a lot of search activity due to my mortgage broker trying to find me a mortgage (5 companies). Can anyone HELP me?

    Jase
    • Post Points: 35