Prospective buyers finding out about poor credit during mortgage applications

Poor credit scores are denying prospective property buyers from being granted mortgages, a new study has revealed.

The research into the nation's financial habits, commissioned by credit card provider Vanquis, found that many mortgage hopefuls discover their bad credit rating at the point of application.

One in five people surveyed said they have been declined credit - with one in ten of this group having been denied a mortgage. 

This figure rises to one in four in the 24-35-year-old demographic.

Some 43% of those surveyed said they had never checked their credit score, rising to 53% among 25-34-year-olds.

What's more, one in ten respondents said they only realised they had bad credit when they got turned down for a mortgage.

“Building a good credit rating is important to be able to borrow money for the important things we want in life, like a mortgage to buy a property of our own," says Sion O'Connor, marketing director at Vanquis.

"It’s concerning that so many people get to the point of applying for a mortgage before they even know there is a problem.”

Top eight credit score myths:

1. Regularly checking your credit score will affect your rating

2. Your credit score will be better if you don’t borrow money

3. Being on the electoral role doesn’t help your credit rating

4. You only have one credit score

5. A good credit score is tied to how much money someone has in the bank

6. Utility bills and mobile phone contracts do not affect your credit score

7. You cannot ask lenders why you were rejected for an application

8. Applying for multiple credit in a short space of time will not affect your credit