What credit score do I need for a mortgage?

Always try to make at least the minimum payments on any credit product you have, on time. Missing or making late payments (even to your mobile-phone operator) can often be registered on your credit report and this may harm your chances of getting credit in the future. An easy way to help you avoid late payments is to set up a Direct Debit.

The Electoral Roll is used to confirm both your name and address, so if you’re not registered your application could be delayed or you might even be turned down. You can check with your local council to see whether you’re on the current Electoral Roll.

Having a large amount of credit that you do not use can affect your credit score. For example, if you have a credit card with a limit of £5,000 but you never use the card. Keeping accounts open that you don’t use can also make you more vulnerable to fraud. If you have old accounts, such as mobile phone or credit cards, they might be registered at a previous address that can affect your ID checks.

If you don’t agree with something on your report, let the credit reference agency know straight away. You can also ask to add a note to your credit report if past credit problems were due to special circumstances. This is called a ‘notice of correction’ and is a short statement of no more than 200 words that you can attach to your file.

Making lots of credit searches in a short space of time can affect your score, so it may help to space out any credit applications, and those for things like car insurance and mobile phones. Moving house can also disrupt your score, so try to make important applications before you move. Finally, check if the product you’re interested in offers eligibility check facility so you can check any terms before applying, and, without your credit search being recorded.

The main credit reference agencies in the UK are Equifax, TransUnion and Experian. These agencies keep records to help lenders like us assess credit applications.

Their records include information such as:

Your electoral register status

If you’ve been made bankrupt or insolvent

If you have any County Court Judgments and Court Decrees

Any current and previous borrowing you have and the way you managed these accounts

Any credit reference searches carried out by other companies

The names of anyone you’ve made a joint application with or have a joint account with, or the names of people you’ve told the credit reference agencies you’re financially associated with.

This information goes into your credit report (also called your credit file).