What is a credit score?

Lenders use a credit score to help determine whether you qualify for a mortgage loan or any form of credit. Using your credit report and any other details you provided during your application, lenders use a mathematical model to establish a numerical score representing your credit history.

Although different lenders have their own unique credit scoring models, the credit score that you’ll have listed on your score will likely range from 300-800+. Your credit score represents what kind of borrower you are and how likely you will manage your repayments.

Credit Score Criteria

  • 300-580 – A score within this range is considered poor. Having a credit score like this can lower your chances of being accepted by your lender. You may also be limited to specialist products and have to put down a higher deposit.
  • 580-670 – This is a fair credit score. Your lender may be more lenient with you and your application with a score like this.
  • 670-740 – You have a good credit score if you fit in this range, and your chances of being accepted will be higher. Most applicants usually have a credit score around this number.
  • 740-800 – This is a very good credit score. Having a credit score between this range can increase your chances of being accepted for a mortgage and likely open you to more competitive rates.
  • 800+ – If you have a score greater than 800, it is an excellent score. Your score is considered well above the average.

A credit score below the ‘good’ range may mean that you’ll only be able to access specialist products, whereas, if you have a score greater than ‘good’, it’s likely that you’ll be able to access more competitive products.

How a Mortgage Advisor in Leeds Can Help

As an experienced mortgage broker in Leeds, we handle specialist cases every day. We often find that our customers have come to us after being declined by their bank/building society due to a low credit score or something similar.

It’s our job to pick up where they left off on their mortgage journey and try to secure them a great mortgage deal. To speak with a mortgage advisor, book your free mortgage appointment online or give us a call

Reasons Why Your Credit Score Might Drop

There are many different reasons you could have a low credit score. For example, you may receive a CCJ when you’ve taken a loan/borrowed money and have failed to pay off the amount owed.

CCJ’s can put a harmful imprint on your credit file for six years or more, and that’s why it’s so vital that you try and get the CCJ removed from your file before applying for a mortgage or make sure that you pay off all owed payments before you receive a CCJ.

A CCJ will undoubtedly reflect negatively on your mortgage application, and your lender will start asking questions.

Following CCJ’s, failing to stick to credit agreements can harm your credit score. Even failing to keep up with your mobile phone contract payments can eventually cause damage to your credit file.

You can’t forget about the little things either, as they can cause damage too. For example, dipping into your overdraft every month could cause a long term adverse effect.

These are just a few examples of things that can negatively affect your credit score. Of course, there are many other reasons you may have bad credit, and some are more obvious than others.

It’s our job to try and help you improve your score and give you expert tips to try and get your credit file looking up to shape.

Improving Your Credit Score in Leeds

Improving your credit score, exceptionally when low, can sometimes be challenging. When it comes to helping you improve your credit score, we want to give you the best advice possible to help you do so.

You should know that each lender has its unique passing criteria, so your score may affect what sort of deals you can access from each one. 

Also, you may not match every single mortgage product, so rather than applying for many different products, you could try shopping around for mortgage deals that will fit your situation and credit score.

Avoid Unnecessary Credit Searches

You’ll have a soft or hard credit search performed on you whenever you go directly to a lender, and their in-house mortgage advisor puts you through for a deal. This search will imprint your credit file, and other lenders will be able to see the search. 

If your application gets declined, the credit search on your file may harm your credit file, which is why we recommend keeping the number of searches performed to a minimum.

As an expert mortgage broker in Leeds, we can help. Our team of experts will look at your credit score and only look for products with criteria that we know you’ll pass.

Avoid Credit Applications

Applying for credit, particularly during your mortgage application, can sometimes backfire on you. If you take out a loan or apply for extra credit if you fail to pay it off before your application, your credit score may dip, and it could reflect poorly on your credit file.

In some cases, as long as you pay it off, borrowing credit can help improve your credit score, as this shows that you are a reliable applicant who meets their payment deadlines.

Check That You’re On The Voter’s Roll

An easy way to help improve your credit score is to get yourself registered onto the voter’s roll (if you aren’t already).

If you aren’t registered, it’s a simple registration process; head over to the official government’s electoral roll page to find out more.

Make sure that you fill out accurate information when registering for the roll. You will need to provide your current living address, so make sure that there isn’t an old address listed on the system.

During the mortgage application process, you should ensure that all of your information gets filled out correctly and double-check that you’ve not got an old address listed anywhere.

Don’t Run Close to Your Maximum Limit

Maxing out your credit card(s) each month can heavily impact your credit score negatively. Of course, paying off your credit cards each month will help and may give your credit score a slight boost.

If you are exceeding credit card limits and constantly dipping in and out of your overdraft, they may feel as if you don’t take your finances seriously and are an unreliable applicant.

Remove Financial Links To Others

Your credit score could be getting harmed without you even knowing if you are still financially linked to someone who has bad credit. Whether it’s an ex-partner or a family member, you should try and get your financial links removed from them if they are harming your credit score. 

The only way to do this is to contact your credit reference agencies and request.

Is it all about your credit score?

It’s up to your lender to decide whether they feel like you are the type of person they want to be lending. Some may be more lenient than others, whereas some may be strict and won’t give you some leeway.

Sometimes it’s best to get help from professionals like us. Using a mortgage broker in Leeds could allow you to access new, competitive mortgage products. 

Whether you’ve got bad credit or good credit, it’s our job to try and find you a product that you perfectly match. We have a vast panel of high street and specialist lenders, each with 1000’s of mortgage deals for you to try and access.

For further credit score mortgage advice for first time buyers in Leeds and home movers in Leeds, feel free to get in touch today.

Date Last Edited: December 6, 2023