The first thing to say is that lenders do not use credit ratings or credit blacklists. Each lender will judge an application, whether it be for a loan, credit card or mortgage, on its own merits & each will use their own criteria, known as credit scoring.

They will use this criteria to judge your quality as a potential customer. Banks & Building Societies are interested in profits and these systems are not infallible. They would prefer to lose the odd good application that doesn’t meet their standards than expose themselves to risk on many more. If one lender refuses you then it doesn’t mean that another will.

Many things will affect a credit score such as the amount of applications or credit checks you have had carried against your name, the credit history of current or previous residents of past addresses & even such mundane things such as how long you have been employed or whether you have a landline telephone number.

One of the major annoyances that we come across is clients from who have never taken out a loan, mortgage or credit card. Ofetn having no credit is worse than having plenty of credit, as the lender has no payment history to judge their decision. In these circumstances we would advise applying for a ctredit card spening a small amount on it each month and paying off the balance before you incur interest charges.  

ADVERSE CREDIT

Averse credit is where a lender sees anything on your credit score that they do not like. It may not mean that this information is accurate (see the "how to check your credit history" section below) & if it isn't we can help you appeal & get it removed.

However many people do have adverse credit. If so it is important to judge what it actually consists of & when it happened. If you made a late payment on a loan a couple of years ago this is considered much less of a risk than a CCJ (County Court Judgement), missed mortgage  payments or bankruptcy. Lenders view these on a sliding scale and generally will price the interest rate depending on the seriousness.

HOW CITRUS FINANCIAL CAN HELP

One of the worst things you can do to your credit score is to make multiple applications to lenders that are refused. As a firm of mortgage advisers Citrus Financial will use it's expertise to ensure that your whole circumstances are taken into account and that your application goes to the right lender. There are a number High Street lenders that take a lenient approach to adverse credit, for example ignoring CCJ's under a certain amount or incurred within specific time periods. For more significant adverse we know each lender's criteria inside out and can guide you to getting the best mortgage.

The overall cost for comparison is 6.2% APR. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

GETTING YOUR CREDIT REPORT