Why financial footprints can be beneficial

When you walk on a beach, bare-footed or in shoes, if the sand is damp enough, you’ll leave a footprint.

When. you apply for a credit card, a loan, a mortgage, you’ll leave a digital footprint.

One is temporary, the other is semi-permanent, but the latter is vital if you are to acquire finance.

Imagine for a moment someone who wants to invest in say a HMO property of 8 flats in Glasgow and has a substantial cash deposit, a business plan to make capital gains but no financial footprint.

A credit search reveals no default on loans, mortgages or credit cards, in fact it reveals no credit history at all. That footprint could present a problem.

These are the type of cases we see regularly at M8 Financial; men and women looking to acquire a property investment, meeting and often exceeding the LTV criteria with large deposits, but without the credit history to satisfy many lenders that the deal is a viable one.

You need to build a good credit history and we can advise you on this in more detail too.

Here’s two simple first steps though for anyone looking for credit.

  1. Open a bank account. This is a first major step to getting a good credit score. Depositing money and setting up direct debits will demonstrate financial responsibility and save you time and money. One of the first questions on any finance application is often your bank details and length of time with them. Not having a bank account affects your ability to borrow.
  2. Get on the electoral register. Put simply, this proves to lenders that you live where you say yo do, but often it’s a step that people omit. It’s really easy to do too.

Remember your credit score is based on your credit history and if you haven’t got one, if your fiscal footprint is set in sand, you need to do something about it.

M8 Financial can help.


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