Bad Credit High Income
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Bad Credit High Earner Frequently Asked Questions
Richard Crow answers the most frequently asked questions for Bad Credit High Earners.
In less than 10 minutes, you’ll know a lot more about getting your remortgage sorted.
Can I get a mortgage with bad credit but good income?
Yes, it is absolutely possible. Whilst the usual factors must be considered, such as how recent any bad credit issues were, how much and how often the bad credit occurred, applicants may find it slightly more difficult than if they didn’t have the bad credit due to their spending habits. Rather than going to a High Street Lender, we would always suggest coming to us, or another broker, because we’ll always match people up to a corresponding lender.
How do high earners end up with bad credit?
Generally bad organisation causes bad credit in higher earners, so simple things like not automating their credit card or store card payments. Ensuring you pay the minimum or completely clear off the card every single month will save that from occurring.
A lot of people with a big wage can rely too heavily on credit. Perhaps they have high income for some part of the year, and psychologically forget that they’re not on it all year round, causing them to live to their means during that highly paid period.
We often see too many credit accounts open, which can actually delve into things like drugs, gambling, and possibly alcohol abuse. This usually stems from a poor money mindset and a belief that they don’t deserve the high income. Subconsciously, they do all that they can to throw away the money that they’ve worked so hard to earn.
If somebody has got bad credit but a good income, how do they get a mortgage?
The most important thing is to organise your finances and make sure you know what you’ve got to spend at the end of each month. Determine how much you’re going to save, and how much is dedicated to your existing financial commitments.
The next thing you can do is to know your credit score. When you focus on your credit score, all of a sudden you’ll do all the things that make your credit score better. You can reduce your debt, and lenders tend to look at your debt to ratio. If there’s a lot of lenders that you owe more than 50% of what you earn to, you’re an instant no to them.
We don’t judge people here, we’re just here to help, and we find a lot of people come to us because they feel that they’re not going to be judged and don’t have to be embarrassed by any issues relating to their finances.
Does a higher income affect your credit score?
No, income is not one of the factors that affects your credit score. Credit agencies don’t know how much you earn. What your income does affect though, is how much you can borrow, and that goes along with your financial commitments each month. Lenders may want to ask you why there is bad credit if income is high, and usually, just an honest explanation is absolutely fine, they understand that things happen in life.
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What we really enjoy is being part of one of the most important purchases in people’s lives. It is incredibly special to witness the excitement and emotion when people receive their mortgage offer.
Whether it’s your first time, moving home, investing or just looking for a better rate we would love to hear from you.
How can I improve my credit score with a high income?
Make sure that all your financial commitments are paid on time in the last three to six months and that you don’t go over any agreed overdraft or credit card limits. Making sure your bank is registered to your current address and that you’re on the electoral roll. All of these things are going to help.
How can a Mortgage Broker help?
A Mortgage Broker can help you navigate through every stage of finding and applying for a mortgage. We help you get the most suitable deal available based on your individual circumstances. For example, our services include helping you assess your financial situation, suggest the most suitable mortgage for your needs and searching the market to find deals that match your criteria. Once we’ve placed you with a lender, we look after you through the whole process, taking away all that worry and stress.
Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.