i need to re mortgage my house so have been searching the market but…?
now my credit score is terrible. I went looking for quotes at all the major banks and building societies but some of them said they couldn’t even give me a basic quote without a quick credit check. I then allowed them to do a credit check- Halifax bank was particularly impressed with how excellent my credit score was. Now I have found the deal i want at Nationwide but now my credit score is terrible because i have had too many credit checks. The banks that did the checks did not inform me that having too many checks would give me terrible credit. Now Nationwide said i will be lucky to even get a mortgage with terrible credit in todays market, and the terrible credit will stay with me for 6 months! now i will have to continue paying the 7% rate i have at the moment- but it seems unfair when i was set to swap to a 4.1% rate. This means an extra £150 a month on my mortgage! I have never owed any money in my life and feel like these huge banks have cheated me. Do i have any legal standing?
the only thing i have done to get terrible credit is have a lot of credit checks- but i wasn’t aware this affected my credit rating! i am shopping for a re mortgage and many lenders wouldn’t give a quote without a credit check- i fail to see have this is HONEST
plus if i have to stay on this mortgage rather then the re mortgage i had plotted it will cost me an extra £150 per month so over 6 months it is a lot!
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Tags: bad credit, banks, building societies, credit checks, credit rating, Credit Score, halifax bank, lenders, money, mortgage, quotes
No, it is sad. I tell people al the time not to let people pull your credit score. The only thing to do is to wait 6 months and then refinance. I reckon that interest rates may even go down a small so it still might work out for you.
Hang on in there until things improve.
Well Tuesday the rates dropped and it was excellent time. It’s really HONEST, as you are facing the natural consequences of your series of choices which led to you getting terrible credit. Too many credit inquiries does have a negative impact on your credit but won’t turn excellent credit terrible–how many companies did you check around with. Go to who ever offered you the excellent deal with a cover letter explaining the above, that you were shopping for new mortgage and had too many credit checks, but that you were not really applying to get lots of new lines of credit. Otherwise, continue for 6 months, building your credit up. You can counteract the higher rate by paying extra principal for the 6 months, although you may need to be saving for closing costs, down payment, etc. 6 month’s delay won’t cost you that much dollar-wise.
Before people get the incorrect impression, when you are mortgage shopping, getting multiple inquiries within a two-week period only counts as one inquiry on your credit report, so mortgage shopping does not significantly bring down your credit score. If your score has been significantly negatively impacted, you either had significant gaps between the inquiries (i.e. more than two weeks) or you applied for credit at other places (i.e. credit cards?). Whatever the situation is, credit inquiries drop from your report after two years, if that’s of any comfort. But to answer your question, I wouldn’t reckon that you have any legal standing against the banks that checked your credit since you had to authorize them to do so.