This is an interesting question, one that we are frequently asked. Briefly, the score itself is not the be-all and end-all, looking at the account conduct forms part of the overall assessment when lenders evaluate your eligibility for a loan. Yes, having a higher credit score is better than a low score.
Let us dissect this further and see what “account conduct” means specifically. By this we mean the history of your account, the transactions you have had, and the frequency and regularity of payments out. Missing payments is not a good look, especially if payments are missed on one-to-many occasions, then there is a chance that a default on payment could be recorded against your credit report.
If you have a credit card and max it out frequently, this can also impact the overall assessment of your credit history, some lenders tend to shy away from buyers with this type of history, as they worry that the buyer is in over their heads a little.
It is also worth noting that if many applications are made for credit, this can result in a hard search on your report. Even if the credit applications are successful, the frequency of hard searches can also throw lenders off.
Another thing that usually surprises people, is not having a credit history. This is where you have not taken out a loan or arranged a monthly payment plan for things like insurance (which usually is given to a third-party credit company by insurers, and these credit agreements charge interest on payments).
However, it is not all doom and gloom when it comes to a low credit score. There are lenders who offer credit repair loans, most experienced mortgage brokers are aware of these lenders and could approach them on your behalf.
To sum up, if you are worried about your credit score and if you are thinking about buying a property soon, or later down the line, it might be a good idea to talk to an experienced broker. Not only can they evaluate your options but can also offer advice about your personal credit history.
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Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk