The credit score myth
Published 26th March 2018
I was worried about using a mortgage broker at first as I heard multiple searches can cause a problem, will using a broker damage my credit file?
The credit score myth: As a broker, this question is often asked, but there is no need to be concerned if you’re mortgage is in the right hands. In reality, the right broker can help protect your credit file rather than damage it. With everyone looking to make savings where they can more and more these days, rate shopping is a common thing, especially living in a world where comparison sites are aplenty. Each time you visit a bank in person, they will try to 'sell' you their rates and deals, and get a credit score done right away to check your eligibility for their products. If you are sensibly comparing several banks to get yourself the best deal, then this could potentially spell trouble.
It is true to say that multiple searches on your file may damage your credit score. So, if you’re rate shopping or if you're struggling to find a lender to accept you, blindly moving from one lender to the next is not the best way forward.
We don't mind blowing our own trumpet, as we know one of the best things about our service is that the brokers that we work with already know the criteria of all the different lenders. They already have an idea on which organisations will accept you and which on't. Every adviser will assess your situation before acting, and then research the market to find the lender most likely to accept your application with the best deals. In doing this, you only undergo one credit search with the lender we find for you.
In order to help them, we really recommend getting hold of all 3 of your files from Experian, UK Credit Ratings, and Equifax. It may take an extra 5 minutes to do so, but the benefit of all three is that they can all have different info showing, and as each lender uses a different agency it really helps us offer you the best advice when matching you up with the best lenders for you.
NOTE: You will NOT be penalised or scored any differently for searching your own credit file with these agencies, credit score is only affected by applications for credit. AND – ITS FREE! Sign up for the free trials below and order your reports now.
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If you have been struggling to get a mortgage, find out more about what we can do to help here.
TOP TIP: One of the best things you can do to increase your credit score is to obtain an adverse specific credit card, and spend and repay in full on a monthly basis - this helps to prove you can borrow and live within your means at the same time, and you'll notice your score improve over the coming weeks and months. There are 2 options here, the first is a standard credit card specifically for those with bad credit, the second is for those who are declined for standard cards and need a guaranteed-acceptance card (usually if you have had more severe and more recent adverse credit). Most people opt for the Aqua card first, then go for the CashPlus if declined.
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