What does 'Credit History' mean when buying a property?
Find out what Credit History means when you are buying a property. 'What does Credit History mean?' plus over 150 other property related terms and jargon in plain English
Each person has a credit rating or credit score (see Credit Rating) - this is a number between 1 and 999 which reflects how good (or bad) you are at handling debt.
In getting to this number one of the factors taken into account is your credit history - what have you borrowed in the past, when did you borrow it, over what period id you pay it back and were there any issues (such as missed payments).
Even a mobile phone contract can be included in this because in effect you are paying in arrears.
To have a look at your credit history you can use the services of a Credit Agency. Personally I use Experian. For a small charge they will let you know what information they hold on your credit history.
I recommend every buyer does this before they even start looking for properties as Credit Agencies can have errors or missing information which may make your credit history, and so your credit rating, look less attractive.
In these circumstances the mortgage provider may not lend you as much as you could otherwise borrow.
Credit Agencies will correct or update your Credit History if you can provide proof of events or items they are missing.
For more on Credit History, Credit Ratings and Credit Agencies and their role in a property purchase pick up a copy of my ebook How to Really Buy a Property.