Although there are a lot of factors that can affect your chances of getting a mortgage, few are as important or as decisive as your credit rating. All lenders will want to check your credit file before they approve your mortgage application. If your credit rating isn’t up to scratch, you may well find that your lender declines to offer you a loan and that securing the home of your dreams is more of a challenge.
One of the key factors that credit reference agencies use when calculating your credit score is your address. As @checkmyfile says:
“Your address is key for a credit check. Whenever you apply for credit, the lender will use your address and ask for all of your account payment history information, such as loans, credit cards and mortgages from the credit referencing agency.”
If you live in a military barracks however, using your address for your credit rating may not be quite so straightforward. Often classed as communal accommodation, barracks can play havoc with your credit rating and make getting a mortgage even tougher.
Barracks and your credit rating
Military personnel who live in barracks often have a communal address, rather than an individual address. This means that when credit agencies search for a soldier’s payment history and other financial information, it will be harder to find.
It will also be more difficult for the credit agency to distinguish between the credit information relating to the applicant and that of the other people living in the barracks. Often, when credit agencies try to search ‘large usage addresses’ like military barracks, they’re unable to find the data they need and an incomplete credit report is returned.
Oversees barracks and your credit rating
Due to the nature of the job, military personnel are often required to move address and even country on a regular basis. Again, this can cause problems with your credit report as credit agencies will have trouble tracking you down. If you’ve recently come back from a posting in an overseas barracks, you may find waiting for a few months for your finances to catch up with your relocation could help to improve your credit score.
How to improve your credit score while living in military barracks
If you’re determined to improve your credit score and secure a mortgage for your new home while living in military barracks, getting expert advice could help you achieve your goal. Our team know a great amount about improving credit scores and the steps needed to create a score good enough to secure a loan. Take a look around our site today or get in touch with a member of our expert team to find out more.
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Written by: Andrew Page