How to Be Strong As A Mortgage Applicant Despite Poor Credit Score

by Molly Harris Molly Harris is a Mortgage Loan Officer

There is no need to create a platform and describe the chaos that a bad credit situation brings for a mortgage applicant. All know it, and you also know the reasons too. The need is to come directly to the point and work on the issues that require attention.

The lending market has become quite liberal after the emergence of new-age financial services. However, this does not nullify the need for the efforts that a poor credit scorer should do to avoid rejection on the mortgage. If you too are poor credit scorer, several precautions are required.

Work on the improvement of credit rating much before you apply for a mortgage

Why not first work on the actual obstacle? You know very well that bad credit rating can become the prime cause of problems in your way to a home loan. Work on the purpose and the consequence will change naturally.

· Pay the bills and debts on time – they very common but very important suggestion

Yes, delaying the debt payments is the crucial reason for degrading in credit score performance. Fulfil your financial responsibilities on time, and you can gain an upgrade in credit rating. This is also good for the lenders that want to see an improvement in your money matters. After all, they want to be sure on the repayment capacity of the applicant, and any positive sign brings the green light signal for you.

· Do not keep the unused credit cards, bank accounts etc.

The unattended financial commitments always prove a person careless, and in the world of lending, it is not acceptable. If you have a credit card, store card, bank account with zero or negative balance, then close them all immediately. Did you know, they suck a big part of your creditworthiness?

· Never pay the minimum due amount of credit cards

This advice deserves a separate mention as the credit cards, if not appropriately tackled, can spoil the game. When you pay the minimum, it is equivalent to only the interest rates applicable on the credit card. Spending that much deducts a very less amount from the pending principal due. Whenever you make the payment, make sure that is more than the minimum. Idol situation is to repay the actual amount.

Like the above, there are several more ways to improve credit rating and apply safely to apply for a mortgage with a poor credit rating from a mortgage broker in the UK such as ShineMortgages.co.uk.

Find a broker

For a good credit scorer, it can be easy to find a deal. However, for a person with a number between 561 and 720, it may not be that much easy. Brokers always know the mortgage market in totally and in detail too. They can easily suggest the options that are suitable and practicable in your situation.

With the required efforts if you have attained betterment in your score, then it can be smoother to find the loan deals. Every small thing affects a lot, and correction in payment records is not an insignificant factor. It is a considerably big thing that inevitably comes into notice.

Make sure the brokers you choose should have the following features:

· Easy online access

· 24x7 support

· A broad panel of lenders

· Big network, try to find those within the radius of 2 miles

· A vast range of mortgage products

· Of course, able to provide advice and solutions to the poor credit score applicants

No lender can give you an unbiased information about the flaws of its policies. However, a broker can tell you every positive and negative thing about the suggested lending companies. There are some names already popular in the market, for example, ShineMortgages, John Charcol etc. Rest depends on your search.

Bring a guarantor with a good credit rating and ALSO income in big figures

To compensate for your weakness on the part of payment history, your guarantor should be reliable on the two aspects. With a good and in fact if possible an excellent credit score performance, that person can be a real saviour for you. More than that, if the salary is also good, then approval becomes speedy.

Take a joint mortgage

When two people apply for one mortgage product, the creditworthiness issues get solved quickly. You and your partner (wife/husband) can turn things in favour. The merger of the income of two people makes way for easy loan approval. Many people across the UK, go for the joint mortgage option and easily qualify for funds in a short time.

Conclusion

Applying for a mortgage with a credit rating is more like a skill. You should know the required dos and don’ts that can work effectively in bringing a ‘yes’ on your loan application. Make sure you do not miss to follow the right path. To borrow a significant amount, you have to show the discipline in your financial behaviour, and there is no alternative to that. Got it?