The importance of a credit report can be misunderstood, especially for a Mortgage application.

A mortgage can be the largest debt you will ever apply for, so it’s perfectly understandable that a lender will want to check your credit profile to ensure they are comfortable lending you a large sum of money.

Current accounts, credit cards, mobile phones and utility payments and comparison site searches are all registered on your file and sometimes unknown late or missed payments can effect your credit profile and have a negative impact.

Q&A on Credit Reports

1. Which agency should I get my report from?


There are 3 main Credit Reference Agencies in the UK;

  • Experian
  • Equifax
  • Transunion

Although you can get a copy of your credit report from them individually, at Q we recommend that you retrieve a credit report from “Check My File” – they provide you with the details of what all 3 Credit Reference Agencies have on you. They also offer a free 30-day trial period which can be cancelled at any time.  After the free trial there is a monthly fee of £14.99.


 2. How much does it cost to get a credit report?


The costs for each Credit Reference Agency will vary, however you will find that most will offer you a free trial period, typically for 14 days. After this period, most will charge you around £15 per month. However, you can cancel after your free trial period as once you have downloaded the relevant information for your broker, they won’t need to see it again.

3. Why do I need to get a credit report?

When applying for most lines of credit the lender will perform what is called a “hard credit search”; this means that it may affect your credit score, especially if you have several hard credit searches in a short space of time. As a responsible broker, we ask for your credit report upfront so that we can be sure that your circumstances will fit with the lenders criteria, making the mortgage process as smooth as possible.


4. I don’t have any credit commitments, do you still need a credit report?

In short, yes. There may be commitments you didn’t realise would show on there such as utilities when you are renting, or your mobile phone contract. Alternatively, you may have had credit commitments in the past. Your credit report tracks the last 6 years to prove your credit worthiness.


5. What do the numbers mean on my credit file?

To be honest with you, not much. Lender’s don’t have a rule where you must have “900 out of 999” score. They are looking for your overall ability to keep up with your repayments and for any issues you may have had in the past.

6. What sort of things can affect my credit?

To name a few things that can negatively affect your credit file; Applying for lots of credit in a short space of time Missing payments Defaulting CCJ / IVA / DMP Bankruptcy Moving house will also negatively impact your score for a short space of time. Improving your score can be difficult and we are often asked “what can we do to improve our score?” – There is no quick and easy way, you just need to keep up to date with your credit commitments and pay off any large loans you have, you should see minor improvements in your score each month.


7. The last time I looked I had a perfect credit score, why do you need one?

There may have been subtle differences in your credit history since you last looked at your report, even if you are sure that there isn’t – it’s better to be safe than sorry.


8. What should I be looking at on my file?

At Q, your broker will do all the explaining of your credit report for you so you don’t need to worry. If you want to know what to be looking for so you know for yourself, then ask your broker and they will be more than happy to go through this with you.


9. I have some issues on my credit file, does this mean I can’t get a mortgage?

Not necessarily, although your issues may exclude you from using a high street lender, as an independent broker, we have a long list of lenders we can approach – some of which specialise in dealing with clients who have a poor credit history. If we think that we can’t help you, we’ll be honest and tell you.

The main thing here is don’t assume your credit history is too bad to get a mortgage, have a chat with us! We don’t charge upfront or for research so a chat will cost you nothing.

10. If the Lenders do their own checks, why do you need a copy of my report?

Every Lenders criteria is different, we don’t want to be placing you with a high street lender if they won’t accept you as this will affect your credit score. We want to make sure that the lender we go to will accept your circumstances and make the process as smooth as possible.


11. How do Lenders use this information?

Lender’s will use your past credit history as a guide to how your future credit history is going to be. Some Lenders will not allow any secured loan missed payments in the last 24 months, some will – this is how we can help you.


12. Can I still apply for loans or credit whilst getting a mortgage?

We always recommend that you don’t apply for a loan or further lines of credit when getting a mortgage. Even after the mortgage has been offered, the Lender can still do a credit search and if they find information that wasn’t present before, this can lead of them withdrawing the mortgage offer.

We understand how confusing the process can be and will ensure you understand the process all of the way

Get in touch today to find out how we can help you! 530 145

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