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Your credit score and credit file are a key tool in obtaining mortgage finance. Here are some ideas on how to manage your file and score. 
Tip 1: Voters are more visible to lenders 
Being registerd to vote means creates are reliable sources of information for mortgage lenders – and is highly beneficial when a lender needs to verify your identity. To find out how to register, go to the About My Vote website. To check if your details are correct on the electoral roll, contact your local council. 
 
Tip 2: Know your credit every time you apply - Check Equifax AND Experian 
Before you apply for any form of credit, make sure that you know whether there is anything in your credit rating that might cause you to be rejected.  
 
When you apply for a mortgage, the lenders check your credit file. If something is registered on your credit file then lenders take that as the truth and fact. It is therefore vital to ensure ensure all the information on your file is up to date and accurate. If it isn’t, request that the creditor and/or the credit agency correct it. Incorrect information could down-grade your status, you really do need to know about it and get it changed if you can. 
 
This is essential before making any mortgage application 
 
Tip 3: Multiple applications - avoid 
A lot of credit applications in a short space of time could be interpreted as evidence that you are struggling to keep up with your obligations, so even if you are shopping around for options, try to space out your applications for credit.  
 
Tip 4: Hard or soft search? 
Some companies will agree to do a “soft search” or quotation-only search, which doesn’t appear on your credit file, and this can be useful for protecting your rating. Make sure you know what type of search they will be conducting – and avoid unnecessary full searches if you can. 
 
Tip 5: Taking out more credit before or during a mortgage application 
The more credit you have the more it impacts the "affordability" of your mortgage. All lenders assess income and debt and commitments before agreeing to lend. If you borrow a lot pn s credit card then lenders may reduce how much they will lend to you.  
 
Don't make a mortgage application and then buy a Mercedes on finance. Lenders carry out checks before the application completes, so you could end up losing the house you want to buy if they withdraw the mortgage offer. 
 
Tip 6: Play your credit cards right (and don’t hold too many of them) 
If you have credit cards (including store cards) that you don’t use, the lines of credit will still be shown on your file – and some lenders will believe that you have too much potential credit available to you. Some lenders (especially those who score on debt to income ratio) will automatically decline an application if there is too much available credit on your file. 
 
Don't fall for the common BS that lots of credit cards are a good thing, They can be very damaging. 
 
Cancel cards you no longer use. 
 
Don’t overload your credit cards though, as lenders also look at the percentage of your available credit that you use.  
 
Keep address registered up-to-date. Having different addresses on your credit file can be a risk factor for lenders. 
 
How you use credit cards is extremely important. Using cards to live on and running a consistently high credit balance can be taken as evidence of bad financial management. 
 
Tip 7: Building and renovation work 
Avoid using credit cards for capital purchases and running high long term balances to pay them off. This can also be seen as poor financial management. If you have to use a card to pay for high value items, make sure you can plan to pay off the balance quickly. 
Use a bank loan instead - that is seen as planned financial management and is far more acceptable. 
 
Tip 8: Build up your reputation 
A mortgage lender needs to look at how you have used credit in the past., so manage credit responsibly and stay within agrered limits. 
 
Make certain that you never miss a payment on credit cards, loans and utility bills. 
 
Use direct debits to help you pay on time, although you will still need to ensure that there is enough money in your account. 
 
Avoiding credit altogether won’t give you a positive credit rating, since it means loan providers don’t have access to information about your reliability.  
 
If you are considering applying for a mortgage with a lender, then it can help to build up a relationship with them beforehand. Having a current account can help to give them a first-hand view of your cash flow and your reliability, as can making regular payments to a savings account to build up a deposit for your home. 
 
Tip 9: Never EVER Never use Pay-Day Loans 
Lenders view someone who has HAD a pay-day loan as someone who manages their their finances badly.  
 
Payday loans are are highly damaging to your credit rating and many mortgage companies rs will probably reject an application if you have used one recently.  
 
If you have had a payday loan, you may need to wait for up to 6 months before applying for mortgage finance. The rule is never use a payday loan before applying for a mortgage! 
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