Do you know your credit rating? Knowing what your credit rating or credit score is might not seem like a big deal, but it’s something that property investors should be taking more notice of.

In the past, when buy-to-let mortgages were easier to come by and often given according to the proposed rental income from a property, your credit rating may not have played such a big role, but things have changed. For those applying for a buy-to-let mortgage in the current economic climate, more attention is paid to your credit score and this can affect the outcome of your application.

Credit scoring systems are used by companies such as banks, credit cards, insurers, mortgage lenders or insurers to rate and predict your behaviour. Although it’s often assumed that there is one universal credit rating list in the UK, this isn’t the case. There are in fact three main credit reference agencies, namely Experian, Equifax and Callcredit, and all three hold information about you. What’s more, the information may differ.

If you’re thinking of applying for a buy-to-let mortgage in the near future, or any other type of loan, then it’s useful to get an idea of what your credit rating, or credit score, not least as sometimes incorrect information can get on their files.

If you have a check done, then it is recorded on your file, but no lenders will be able to see this information and it won’t affect any loan applications you make.

It can sometimes take time to get the results through, so best not done in a rush, but as it could make the difference between being able to buy the property you want to invest in, or losing out on it, it’s worth it. Plus, if they turn out to have incorrect information on their files, you’ll have the chance to get it corrected, which could seriously help your loan application.

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