Home Buying Advice - 8 Steps to Improve Your Credit Rating
If your credit rating is not as good as it should be follow these 8 steps to get you back on track.
Improving Your Credit Rating
If you want to buy a home but your credit rating is not up to scratch here are 8 different ways you can improve your credit score.
Check for Errors - Get a copy of your credit report and check for any errors. If you find errors then report them to the credit agency and try and get them fixed.
Reduce Your Credit Card Dept - Pay down your credit card bills and pay them off completely every month if possible. But don't transfer dept from one card to another.
Don't Max Out Your Credit Cards - This can be seen as bad credit management.
Wait 1 Year Before Applying for a Mortgage - If you have had credit problems then wait a year before applying for a mortgage. This way you will be penalized less.
Don't Buy Big Items - Wait until after your loan has been approved before making any large purchases.
Don't Have to Too Many Credit Cards - An excessive number of credit cards can be seen as bad credit management, especially if the credit cards have been acquired just prior to applying for a loan.
Shop for Rates all at Once - If you apply for loans through different companies then every-time you apply they will perform a credit check. This appears on your credit report and can lower your credit score. If you use a single mortgage broker and apply all at once then this is usually acceptable.
Avoid Finance Companies - Loans acquired through finance companies can be seen as poor credit management, even if you pay the loan payments on time.Return to Home Buying Advice