Written by 12:01 pm Finance, Mortgages

Guide To Credit Scores

If you’re moving along the mortgage journey, there’s no doubt you will have heard about credit scores.

That three digit number that can often be the main stumbling block for many prospective homeowners. 

When it comes to your credit, issues range greatly and the good news is that a poor credit score doesn’t necessarily put a stop to your mortgage journey. 

There are a wide variety of deals on the market, even for those who don’t have a squeaky clean credit score. So, if you think there is an opportunity to better your credit score and proceed with the borrowing process, here’s some of our best advice and guidance. 

What exactly is a credit score?

A credit score is a three digit number in your credit report that is usually reflective of the scoring systems your mortgage lender will use to determine whether you qualify for a mortgage. The higher the number, the higher your credit score. A higher number lowers your risk and indicates to lenders how you’ve managed your credit in the past. 

A higher score usually means you will be viewed more favourably to lenders and may therefore be eligible to better deals and rates. 

There are three main credit reference agencies in the UK: 

Experian 

Equifax 

Callcredit 

Lenders may use one, two or all three to check your credit report so we would recommend checking with each of them and ensuring all the information is correct. You can access your score for free from these agencies via ClearScore 

and Noddle

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Last modified: 11/08/2021

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