Secret number that could ruin your chance of getting a mortgage or credit card

There are several factors to consider when it comes to borrowing money – and one secret number that could be holding you back. Tynah Matembe, founder of Money Matix has shared her advice for those looking to loan

When you make an application for a mortgage or any other type of borrowing such as a new car or even a mobile phone contract, lenders work out a credit score for you. This then helps them decide if they will take a risk with you and if you will be a responsible and reliable borrower – and if you will be likely to pay the money back.

Usually, a higher score means you’re seen as lower risk – the more points you score, the more chance you have of being accepted for a mortgage, and at better rates.

So this secret number that could ruin your chance of getting a mortgage or credit card is your credit score and it may be holding you back without you even knowing. It comes after thousands of Brits to get shock letter from HMRC after drastic new tax rule comes into force.

This sneaky little number is what lenders use to judge you – basically, it’s your financial report card. The higher the score, the more they love you. But too low? Forget it – you’re out in the cold.

And here’s the shocker: your score could be lower than you think! Missed a bill? Took out a payday loan? That number could be tumbling. The good news? You can check it and take control – and we’ll show you how to slash the score-destroyers and boost your financial street cred.

Rewire your money mindset. Our beliefs around money shape our choices. If you’ve grown up thinking, “I’m just bad with money,” challenge that. Create a more positive, empowered mindset about your financial future.

Not all lenders think the same way, and they may have different ways of making their decisions to decide if you are eligible, but all of them will look at some key factors to help them decide and these include:

• information on your on your credit report including your credit history
• information you’ve provided on your application form
• information they may already hold on you, for example if you have a bank account with them
• their own lending policy, which may be different from those of other lenders

Looking at your credit report will give them a detailed insight into your credit history, and will show things like how much you owe on credit cards, if you’re registered to vote and if you’ve missed payments in the past. They’ll put that all together and give you a credit score of their own.

Getting a mortgage for bad credit is by no means impossible but it will probably be harder and is likely to mean you’ll get high interest rates and need a large deposit.