Poor Credit

What is poor credit?

Your credit report is an electronic document containing your financial history including your current and past debt, as well as your payment history. Lenders access this report if you apply for credit such as a mortgage, loan or credit card. If your credit record shows you have missed payments, have too much debt or have had problems such as bankruptcy and CCJs, this is known as bad or poor credit.

What if you don’t have a credit history?

If you have never borrowed money before then you may not have a credit history. This means potential lenders are unable to judge how well you will handle repaying a mortgage. However, by regularly paying bills as well as keeping up with payments on any loans or credit cards you have, you will build a track record of sensible borrowing and show an ability to manage your finances well. Be aware that it can take up to six months for these efforts to make a difference to your credit report.

How to improve your credit record

There are several ways to improve your credit record. These tips might help:

• Make sure you are on the electoral register
• Keep your name and address details up to date
• Always make your repayments on time
• Stay in your credit limit or overdraft limit
• Avoid applying for too much credit.

How we can help.

Ideally, if you have been recently refused a mortgage due to poor credit, we would suggest that you take steps to improve your credit score and wait 3- 6 months before applying again. This is because there are fewer lenders who are happy to provide mortgages to people with poor credit. In addition, these mortgages tend to be more expensive and require a larger deposit.

However, at MRK Financial Services we do work with lenders who will provide mortgages to people with poor credit should you wish to take this route. We understand their lending criteria so can help you to improve your chances of being accepted for a mortgage with them. Our knowledge of the market will also help ensure that you get the most suitable deal possible in your circumstances.