In today's episode I wanted to talk about credit reports and how getting hold of your credit report can help you when it comes to your mortgage options and mortgage rates.

The credit report is a great tool and its a document which when used correctly can be really usefully as not only does it show you want the lenders are likely going to be looking at when they make their decision but because it is a document which contains loads of useful information which you will almost certainly have to provide to your mortgage adviser or mortgage lender and hey, it's all their on one handy document.

Today's episode as we know is all around the credit report and you will know if you continue to listen to my shows that your credit report is big on my list of to-dos when it comes to obtaining a mortgage.

It is the step that almost everybody will miss and for some people, this will not be an issue at all and will not harm their application if they haven't got a copy of their own report before applying for a mortgage because they have a good credit report with absolutely nothing out of line on the report.

Obtaining your credit file is not mandatory documents and mortgage advisers don't even ask to see a copy of it and for the majority people, if your case is very ordinary and you've kept up all of your payments and nothing untoward is on your credit report this absolutely not going to be too much of an issue.

But I would like to just talk with you about the times not doing so is a problem.

Luckily most people understand that your credit report does play a part in obtaining finance, specifically mortgages. What some people fail to recognize is that you can to a certain extent directly manipulate your report and therefore give yourself better options when it comes to rates and mortgage lenders.

By manipulation I don't mean to imply that you are going to be doing anything that is against the rules. In fact the agencies such as Experian and Equifax will even tell you on their own websites and in their own guidance how you can add or change information which will change how a lender views you.

By closing off credit accounts you are not going to be using a mortgage lender will be less likely to presume that you will go out one day and spend up to the limit on all of your accounts. For example if you have a £5000 credit limit on one account and a £5000 credit limit on another account then a lender might have concerns that these can be run up overnight which would change your affordability. So have a look at your report ahead of applying for a mortgage and consider closing off the accounts you are not interested in using again.

Also have a look at the ratio of debt to available credit. One thing lenders will be watching out for is just how high balances are on credit cards and if they spot a pattern of credit card usage which is high then they may ask some questions. Try where possible to clear credit card balances or at least bring them down to around half of your credit limit. You should also pay attention to the interest rate that you are being charged on these credit cards and where possible transfer these onto a 0% card to help you clear these faster. Getting a credit card balance reduced should be considered whenever possible.

Just like with a job application you want to present the best version of you that you can on can by providing evidence which demonstrates your value.

Some lenders will base their lending decision in part on your report and if it's filled with incorrect information or any shows half the story you're not really giving yourself a fair crack at the whip.