When applying for a mortgage, your client's credit history will be checked. Every check will leave a footprint on their record so it's a good idea for them to check their credit report before applying.
Here are five top tips to share with your clients:
1. Using some credit
To impress a potential lender, your client will need to have a track record of using, but not being overly reliant on, credit. Paying their credit card, mobile phone or utility bills on time all help to show this.
2. Registering to vote
Lenders use the electoral roll to confirm names and addresses. Not being on it can reduce your client's credit score, or cause delays when applying for a mortgage.
3. Checking credit report
Your clients should update their credit report before making an important application and dispute anything they don’t agree with.
Having lots of credit checks on file impacts a credit score, so they should make sure that they're not applying to lots of different lenders for credit products.
4. Breaking old financial ties
If your client has applied for a financial product with a partner or friend in the past, potential lenders will see this link and may consider their credit score as well.
Your client should consider closing old credit accounts if there's no balance, as this can also affect their credit score.
5. Explaining unusual circumstances
If your client has missed a payment or got into financial difficulties because of illness or redundancy, a Notice of Correct (200 word maximum) can be added to explain this to lenders who view their credit report.