The wife and I are in a position where we’re thinking about buying our first house and are starting to look into it what we can afford to borrow, what house we can get for our money, etc. Being in the industry for a while, I have a good idea of these already.

Both of our credit ratings are ok (no missed payments, no CCJs, occasional use of overdrafts, etc.) but I’d like to spend the next 6-12 months getting them as good as possible so that we are offered the best possible products and rates when we do apply. We’ve both had debts in the past but are currently debt free.

I’ve read just about everything on Money Saving Expert on the subject but I’d like to know if anyone has any personal experiences of what’s the best way to build an impressive credit profile.

Is it best to be completely debt free? Or to have some small debts but manage them with ruthless efficiency?

I currently use my credit card to pay for fuel and then pay it off in full every month. MSE alludes that this may make us undesirable as we won’t make any money for the banks (no interest being paid) but I’d have thought that where mortgages are concerned they’d want rock solid regular payers.

I’ll be speaking to the IFA at work over the next week but it’s good to get alternative perspectives and I know a few of you are financial professionals so any advice is gladly received.

Not much help, but remember that credit rating isn't just money stuff.

When we bought our house I looked into our credit ratings and although they were pretty good we had stupid things on it like no living in the same residence for long periods (my GF had about 3 different flats in as many years in London), also make sure you are on the electoral register etc.

Ali,

Sounds good.

I would have thought you are over-thinking this. It is a secured debt and you are hardly high risk. I can't imagine there are any mortgage lenders who in your circumstances would look beyond issues like loan to value and affordability to worry about your credit rating.

Agree with Emjay sounds like you are fine, in your situation it would be more to do with actual value of the house (decided by the house survey) and the LTV ratio
You said your credit ratings are ok! have you actually seen them? there can sometimes be mistakes on them best to check and get it rectified now rather than later, you can also take advantage of the free trial periods
Good luck

If you haven't done so, you can get a free credit report (for life) from www.noddle.co.uk It won't be as comprehensive as Experian, but it's good to keep an eye on. I'm signed up to it and so is girlfriend.

+1

You're probably right, Mark. But improving our credit rating isn't the real reason for waiting for a short while.

I'd like to get us above the 90% LTV bracket which will mean a bit of frugal living and hard saving for the next 6-12 months.

Whilst we're doing that there's no harm in doing whatever possible to help improve our credit ratings.

We're both on the electoral role and have veen living at this address for nearly 3 years so we should be good on that front.

We use Experian at work so I can run a credit check on both of us at any point if I need to. Haven't done it in a while though so it'll be worth checking there are no errors or old accounts still showing.

Just a thought, if you use work's credit checking facility will you not leave a trace and therefore impact your score?

Best way to build a score is to have / use credit but do it responsibility this proves that you make payments. Do not get any credit requests against your names (loans, cards finance checks) for the next 6 months as this impeads your rate improvement. Then you need to think about if your names are credit joined and if you are attached to any other addresses. (if you rent are you on the electrol role where you are? Are all you bank details at your current address) you need as much as you can to prove you are OK!

Long term employment is good, long time at address and with current bank is also a plus.

All these should allow you to get the best rate available rather than the next one down the list. Every .1% helps!

I would suggest a finding good financial advisor would be far more worthwhile than worrying to much about credit ratings.

I've dealt with a 2 lots of first time buyers recently. 80% LTV Accord had the best rates. they declined the 1st couple. Just failed the score... No reason why. I do claim lenders will sometimes just turn the machine off!! The next best deal was Santander. They past on their highest score?? With the next couple. Santander failed them only reason was a credit search the month before for car finance. They didn't even take it. I then went to accord ( their system is a 'soft footprint' as in other lenders won't see the search. So it won't affect your score.) they passed on a high score.??
Basically in 24 years of dealing with these guys. I've Learnt to never assume or 2nd guess a credit score outcome