On this episode of the ReadytoBuy Podcast, I explain the difference between 'credit scoring' and your 'credit file', why your credit score isn't the be-all and end-all and talk you through obtaining an AGREEMENT-IN-PRINCIPLE, what it is and why you'll need one!

Time Stamps

PART ONE

00:00 – Introduction

01:38 – ‘Credit Scoring & Your Agreement-in-Principle’

03:15 – The Difference: Credit Files

06:37 – The Three Credit Agencies

09:28 – Monitoring Your Credit File

11:11 – Recommendation for ‘CheckMyFile’

INTERMISSION

11:52 – ‘Definitely Not A Silly Question’ Segment

12:21 – “Do I have to proceed with the lender that I get the Agreement-in-Principle?”

12:28 – Answer

13:09 – Contact Info for Questions

13:35 – Risk Warning

PART TWO

14:12 – ‘What is An Agreement-in-Principle?’

• 14:12 – Defining It
• 14:47 – Factors That Make It Up
• 16:44 – Nature of the Agreement
• 18:06 – ‘Full Application’
• 19:25 –  Two Really Important Purposes
• 20:52 – How Long is it Valid For?
• 21:30 – Word of Warning

22:21 – Conclusion 

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Notes

(00:00 – 01:37) Introduction

• Website: www.MHCMortgages.co.uk 

(01:38 – 03:14) ‘Credit Scoring & Your Agreement in Principle’

• Recap of last few episodes - putting your plan in place and getting yourself as presentable as possible.
• You're almost ready to go out and start looking at properties! But, before you do, I would recommend getting something called an ‘agreement in principle.’

(03:15 – 06:36) Your Credit Score & Credit File    

• I’d also like to discuss the difference between credit ‘scores’ and credit ‘files.’ Having a good one for both is great, but I would argue that a good credit score is slightly less important than a good credit file.

Credit Files

• Your credit file contains all sorts of information about your credit agreements (e.g. loans, credit cards, car finance, store cards, phone and utility bills) and these will detail things such as payment history, balance, name of the lender, how well you’ve conducted it, credit limits, etc.
• It will also show if you are on the electoral roll and address history.
• Aliases will also show up on the credit file, if you've been known by different...