Improving your credit score
Category Property News
When applying for finance for a home, the status of your credit score could be quite nerve-wrecking. Your credit score is calculated according to your past financial activity. A higher rating increases your chances of an approved home loan.
There are ways to improve your credit score. Whilst some may take a long term effect to see an improvement, some methods may have an immediate boost on your score;
- Check your report for errors to ensure all information is correct
- Try to pay off as many debts as possible. Settling and closing accounts will positively impact your score
- Credit cards carry the highest interest rates. Reduce your credit utilization ratio by ensuring your utilisation is at 30% or lower. Paying your instalment prior to the due date is advisable
- Avoid taking on new debts and accounts
- If married, make sure that your spouse follows these steps as well to overall improve the chances of a home loan
Author: Prime Property Marketing
