April 2017 Market Update - How to clean up your bad credit history
When it comes to applying for a home loan, your lender will review your credit history to see whether or not you have a good financial background.
If you don’t have a great credit past and instead have a financial history that is littered with late bill payments and defaults, you may find it tough negotiating with a lender for a home loan.
Thankfully, a bad credit history doesn’t have to destroy your dream of property ownership. There are three easy things you can do to clear up your financial history,
In the first instance you should make sure you pay down (or off) any credit card debt you have.
Carrying a high percentage of debt in relation to available credit drags down your credit rating, so it is important to focus on paying off the debt you owe on your credit card or cards.
The second thing you need to do is improve your payment habits.
Your payment history accounts for 35 percent of your credit rating, so it is essential to keep your payment history positive. Don't panic if you already have late or missed payments on your credit report. It's impossible to erase the past if this information is accurate, but your credit report only reflects seven years of credit history.
Making a commitment to pay on time now will boost your rating in the long term.
Finally, it pays to be cautious about new credit.
Too many loan applications in a short period of time can have a negative impact on credit history.
Opening many new accounts can also make it more difficult to manage your credit. Only apply for credit when it is absolutely necessary.
If you would like to know more about improving your credit history, call Mortgage Choice today on 13 66 78.