NHS worker with no credit history used this trick to boost his score and buy a 2-bed house in York – and here’s how you can do it too
THE dream of owning your own home is becoming harder and harder to make a reality for many potential first-time buyers.
But for one NHS worker, boosting their credit score was just as important as scraping enough together for a deposit.
Will Jolly and his girlfriend Sarah were so desperate to get on the property ladder they decided to up-sticks after spending nearly a decade renting in London.
But the 31-year-old had a non-existent credit history, meaning the couple would have struggled to get a home-loan as lenders wouldn't know if he has a good record of paying back his debts.
So he took steps to boost his report by chucking all his monthly spending on a credit card to show he could be responsible with his money - and now he's a proud homeowner of a two-bed terrace in York.
"I had no idea what my credit score was but as soon as we settled on a plan to save for a deposit, I checked it," he said.
"I have very little credit history - about five years ago I was unemployed and actually got rejected when I applied for a credit card - when that happens you think "oh no".
"I took out a Barclaycard - I'm now in work so was obviously less of a risk - and put most of my monthly spending on it, hundreds of pounds, and then made a point of clearing the balance every month so I wasn't charged interest."
"I wanted to show I was a responsible borrower."
There's lots of confusion about credit reports and how it impacts on what financial products you can get.
There are three main Credit Reference Agencies in the UK - Experian, Equifax and Callcredit.
All hold details about your financial history and it's this data which lenders - so mortgage firms and credit card and loan providers - use to decide whether to lend you money or not.
To see how he was doing, Will used Callcredit's online service, Noddle.
And he quickly picked-up the bug for checking his score regularly to make sure he was on the right path.
Top tips to boost your credit score
Having a decent credit history can give you access to better mortgage rates, credit cards and loans.
Here are Noddle's tips for you to boost your score before applying for a mortgage.
1. Correct any mistakes - If you find a mistake on your report, you should get it corrected straight away. You can contact the credit reference agency about the mistake - it has 28 days to look at the error and correct it.
2. Make sure you have some record of borrowing - Lenders can't work out if you're good for the money if you've got no record of borrowing. Try and take a loan or credit card more than a year before your planning on applying for a mortgage to show you're responsible
3. Pay down your debt - Mortgage providers will look at all your income and outgoings before deciding to lend to you or not so clear as much of your balances as you can before applying.
4. Get on the electoral roll - It sounds simple but lenders use the roll to confirm your identity
5. Never miss a bill payment - Late or missed payments will be recorded in your credit report and can knock-down your score so always try to pay your monthly bills on time.
6. Get saving - Lenders will look at your outgoings so try and cut down on the luxuries before applying.
"I got into the habit of checking my score every month - and I was surprised by how quickly it went up.
"Once you get over the initial fear of checking it became habit," he said.
"It's been really helpful and opens your eyes to what firms who offer credit look for."
New figures from Noddle have revealed that young people are becoming increasingly aware about the impact their credit reports have on their chances of getting accepted for a mortgage.
A quarter of 18-34 year olds have taken out a credit card or loan to boost their score ahead of applying for a home loan.
Another 25 per cent paid-off all their credit cards.
As well as building up his score, both Will and Sarah, made sacrifices to try and put away £500 each month.
The couple cut down on going out to restaurants, visits to the pub and all the other temptations that come with living in a big city.
Over the last year, they saved £5,000 - they put their monthly savings into a Help to Buy Isa - and with the help of both sets of parents, they managed to put down a £20,000 deposit for their first home.
Their first-time buyer mortgage with Nationwide is fixed for two years at 1.99 per cent, with monthly repayments of £700.
More on money
"After renting in London for so long, you just realise you're money is going nowhere - and obviously it's so difficult to buy there too," he said.
"It's been worth the sacrifice - and it feels very strange to think that you actually own a place and can do what you want with it.
"It's really exciting - you don't have to ask a landlord for permission to do things and your money is actually benefiting you.
"Sarah and I are both northeners and Yorks is a small city, so it's not a total culture shock and suited where we wanted to go."
If you are thinking of taking out a credit card to boost your credit score, remember to do everything you can to clear the balance each month and be responsible with it.
Otherwise you'll start paying interest and could end up actually damaging your credit file instead of giving it a helping hand.
How to get help buying a house
THERE are several government schemes available to help you get on the housing ladder.
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