Another Credit Rating Query

Zippy1974

Hi all,

Some background-About 8 years ago I had a business that went bad. Missed a lot of lease repayments, credit card payments you name it I missed it.
I managed to pay all debts off eventually after 2 years and since then took up full time employment earning a decent salary.

In those years since it went wrong I have not borrowed anything nor have I attempted too, I felt I would be declined-It was the best learning experience ever as I lived completely within my means.
I have been saving regularly the last 2 years for the day when I would get the courage to apply for a mortgage but never held out much hope.

A few weeks ago I decided to apply for a credit card with my bank-I wasn’t hopeful at all but thought it would be a good way to find out if they trusted me and I had a clear or improved record.
The card arrived with a 3000 limit. I was amazed. I have no intentions of using it except in situations where in the past I would use a relatives to book flights etc.

My question-I hope to apply for a mortgage next year. I will have the deposit and shown over the last few years that I pay all my debts on time.

Am I likely to be successful? I know it’s a bit like asking how deep is a hole but general opinions would be good-or advice on how I can increase my chances.

Thanks.

D3PO

Best thing to do is order an ICB report to see how your credit looks.

However if they were buisness debts and not personal ones (i dont know if you were a sole trader or not) then its unliekly to be an issue. Also as they are all over 6 years old they wouldnt or shouldnt be showing on your ICB report anyway.

So you should have a clean credit history I suspect in which case you would have nothing to fear in that regard when applying for a mortgage.

Zippy1974

D3PO wrote: »

Best thing to do is order an ICB report to see how your credit looks.

However if they were buisness debts and not personal ones (i dont know if you were a sole trader or not) then its unliekly to be an issue. Also as they are all over 6 years old they wouldnt or shouldnt be showing on your ICB report anyway.

So you should have a clean credit history I suspect in which case you would have nothing to fear in that regard when applying for a mortgage.

Thanks for the reply. I was a sole trader at the time so personal debt. I ordered a report from the ICB about a year ago and there was no information on me whatsoever.

I’m guessing now that I was approved for a credit card I am “in the clear”
Now I need to build up a rating so I will get mortgage approval when I apply-I hope?

D3PO

Zippy1974 wrote: »

Thanks for the reply. I was a sole trader at the time so personal debt. I ordered a report from the ICB about a year ago and there was no information on me whatsoever.

I’m guessing now that I was approved for a credit card I am “in the clear”
Now I need to build up a rating so I will get mortgage approval when I apply-I hope?

if there was no info on it then yes you have a clean report.

Re building up a rating this isnt required. This isnt america where you need to build up a rating, just keep saving hard and when the time comes apply and hopefully you get what you want.

Zippy1974

Sorry for bumping an old thread but I felt I should give a follow up here.

Applied for, and was approved for a mortgage.

I see a lot of questions on credit ratings etc from people who were in financial difficulty at some point and if I can offer some advice to them:
Do not despair.
Everything is repairable in most cases. If you can get the debt/debt paid off, great, then live without borrowing if you can (you might not have a choice). It was a great lesson to me.

In time, you may be able to access finance again. All is not lost.

Zippy