Why you should check your credit score before searching for a new home

Wed 06 Jun 2018

Buying or renting a new house can be stressful enough without nasty surprises such as a poor credit rating slowing things down, especially when it may be easy to improve if you know about it in advance.

 

When choosing to rent, letting agents and landlords want to know you are credible and can pay your rent on time. An easy way for them to check this is to look at your credit report. If you know your score in advance, you can plug any holes in your credit history, consolidate any debts and help make sure you get the home you want.

Homebuyers are subject to similar scrutiny. Each time you apply for a mortgage (or any other credit like a loan or credit card), it leaves a record on your credit report. Lenders and mortgage companies checking your report will worry if they see lots of credit applications in a short period of time because that makes them think you could be too dependent on credit. And that makes your credit score go down.

So checking your Experian Credit Score in advance gives you a great idea of how lenders see your financial standing, and whether you need to explore your Experian Credit Report in more detail.

So, what exactly is your credit score?

Simply put, it’s a number that lenders calculate based on a range of different factors to decide whether they’ll lend to you or not. The higher your score – typically up to a maximum of 999 – the better your credit standing and your chance of being approved for a mortgage with a good interest rate that best suits you.

While that sounds simple enough, there’s a lot that goes into calculating it. Along with the information you provide in your credit application, lenders also have their own criteria that could include your income, how much you want to borrow and whether you have defaults or similar on your credit report.

But by checking your Experian Credit Score – which is based on your credit history to give you an idea of how lenders may view you – you can see where you stand and if you need to improve it.

How do you improve your credit score before you apply?

If your Experian Credit Score isn’t where you’d like it to be, there are steps you can take to improve it.

If you have credit it’s important to manage it well, as that’s what lenders want to see. That means avoiding late payments and paying back anything overdue, and then making sure your future payments are on time. If you can, try to pay back more than the minimum each month to help reduce your overall debt.

It’s important as well to make sure you don’t apply for credit too often especially in a short period of time. This can make any lender you apply to think you’re dependent on credit.

The Experian Credit Score helps you understand your financial standing and how lenders and landlords are likely to view you. Good news too – it’s completely free so you can check it and use Experian to compare mortgages.

"From start to finish we have been really happy with the Anker team. They always had our best interest in mind and were well informed of the local market. We were always in good communication with the team and knew exactly what was going on, we would definitely use them again. Thank you Jeremy, Marie and team."
Jonathan Bennett - Vendor

News Archive

September 2018

Five tips to help you feel at home in a new property

August 2018

Prioritise your search with Keyword Sort

June 2018

GrangeFest 2018

Why you should check your credit score before searching for a new home

April 2018

Overseas Homes

March 2018

Property viewings: 9 tips for finding 'the one'

Conveyancing: Advice For Homebuyers

February 2018

Mortgage alert! Top mortgage rates have already started disappearing... why you must act now to beat £500 bill hike

February 2018

Seven top tips for today’s first time buyers

December 2017

Happy New Year!

Merry Christmas!

Christmas Opening Hours 2017

Unwrap your perfect home this Christmas

November 2017

Stamp duty scrapped on homes up to £300,000 for first time buyers

Top tips for dealing with the Bank of England’s 0.25% base interest rate rise

February 2018

Top tips for reducing condensation

July 2017

Broughton Castle Sportive 2017

Bodfest 2017

May 2017

The London & Country Property Show 2017 - Update

April 2017

The London & Country Property Show 2017

March 2017

On The Markets guide to house price indices

Plans for a £50 million waterfront leisure development in the heart of Banbury have be unveiled.

February 2017

Is your home in an area prone to flooding? What to do if disaster strikes?

January 2017

House prices: Whats in store for 2017?

December 2016

Merry Christmas and Happy New Year

Christmas Opening Hours

November 2016

Hugh Grants Former Bachelor Pad For Sale

Sales to first time buyers at highest level on record

2016 - Autumn Statement: Lettings agent fees to be banned

Tories pledge to build 40,000 more affordable homes in Autumn Statement 2016

Winter-Proof Your Home SOS

October 2016

Spamalot - Banbury Operatic Society - Tickets on Sale

Keeping your home damp free

What The Bank Of England Base Rate Cut Means For Mortgage Holders

September 2016

Moving to a new area? Top tips to help ease moving house

August 2016

Buying or selling a property with asbestos?

July 2016

BBC Packing Tips

3 Ways RICS Home Surveys Pay For Themselves

June 2016

Buying or renting a listed building? Everything you need to know

10 Secrets To Achieving Show Home Style

May 2016

Buying Or Selling A Property Affected By Japanese Knotweed?

Can Overpaying Your Mortgage Save You Money?

All You Need To Know About The Lifetime ISA

5 Ways To Protect Your Home From Flooding

April 2016

One in four of today’s first-time buyers will be paying off mortgages in retirement

Anker and Partners sponsored football kit being re-used in Sierra Leone!

March 2016

Oxfordshire Villages The Sibfords and Great Tew make it into top 40 best villages in Britain

February 2016

Sky Dive to Raise Funds for the Blue Cross

Is it cheaper to rent or buy a home?

Help to buy scheme

January 2016

Will UK house prices continue to rise in 2016?

Supporting Dogs for Good

UK Stamp Duty - What changes to expect in 2016?

April 2009

Factsheet: Mortgages