It sounds like a terrible diagnosis youve got a poor, bad or adverse credit score as far as a mort
It sounds like a terrible diagnosis youve got a poor, bad or adverse credit score as far as a mortgage goes, surely now nobody would touch you with a bargepole?
In fact poor or bad credit is not the end of the world. Up to one in four people are turned down when they a ly for credit and the reaso why can be more complicated than you might think. Lets look at the reaso why your mortgage a lication may have been rejected.
Credit Reference
There are three main agencies in the UK that provide credit references, or credit checks on individuals. These agencies provide information on previous credit agreements, such as credit cards and loa , plus any County Court Judgements on your file (CCJs). Normally when you sign the credit agreement you give co ent to the agency pa ing on the information. CCJs are registered automatically and will remain on your file for 6 years. You can request a copy of your statutory credit file from these agencies, and by law they ca ot charge more than 2 for sending the information to you.
Contact:
Callcredit plc on 0870 060 1414
Equifax plc on 0870 010 2091
Experian Ltd on 0870 241 6212
Youll need to give your name, date of birth, and all addre es for the past six years. If you are a busine owner, give the busine details too as this may provide other information.
Credit Scoring
Credit scoring differs from your credit file banks and lenders use this point-scoring system to a e how much of a risk lending to you would represent. In fact, this is a fairly vague system, and a arently subject to secret proce es that the banks are loathe to disclose. The criteria they use to a e your a lication includes things like how long you have been on the electoral register, how many times you have moved recently, how many jo youve been through in the past few years, and how often youve a lied for credit.
There are also some rather peculiar cases that get turned down such as people that have never been in debt, ever. If youve never had a credit card, loan or overdraft, this may actually count agai t you, as the more credit requests you have accepted, the ha ier the lender is to co ider you a safe bet. In addition, people with unusual occupatio may be turned down regardle of their income.
In fact poor or bad credit is not the end of the world. Up to one in four people are turned down when they a ly for credit and the reaso why can be more complicated than you might think. Lets look at the reaso why your mortgage a lication may have been rejected.
Credit Reference
There are three main agencies in the UK that provide credit references, or credit checks on individuals. These agencies provide information on previous credit agreements, such as credit cards and loa , plus any County Court Judgements on your file (CCJs). Normally when you sign the credit agreement you give co ent to the agency pa ing on the information. CCJs are registered automatically and will remain on your file for 6 years. You can request a copy of your statutory credit file from these agencies, and by law they ca ot charge more than 2 for sending the information to you.
Contact:
Callcredit plc on 0870 060 1414
Equifax plc on 0870 010 2091
Experian Ltd on 0870 241 6212
Youll need to give your name, date of birth, and all addre es for the past six years. If you are a busine owner, give the busine details too as this may provide other information.
Credit Scoring
Credit scoring differs from your credit file banks and lenders use this point-scoring system to a e how much of a risk lending to you would represent. In fact, this is a fairly vague system, and a arently subject to secret proce es that the banks are loathe to disclose. The criteria they use to a e your a lication includes things like how long you have been on the electoral register, how many times you have moved recently, how many jo youve been through in the past few years, and how often youve a lied for credit.
There are also some rather peculiar cases that get turned down such as people that have never been in debt, ever. If youve never had a credit card, loan or overdraft, this may actually count agai t you, as the more credit requests you have accepted, the ha ier the lender is to co ider you a safe bet. In addition, people with unusual occupatio may be turned down regardle of their income.
