Do you know your credit rating? If you've never checked your credit score or read your credit report, I strongly urge you to do so.
The way it works: The higher your credit score, the easier it will be to qualify for a home loan, and the better the terms of the mortage will be. If there are issues in your credit report, you can take steps to fix them before applying for a mortgage. In many cases, minor credit problems can be cleared simply and easily.
Your credit history includes:
- Credit application and enquiries made
- Open credit accounts; including credit cards, personal & car loans
- Overdue credit payments
- Past bankruptcy information
- Court judgements
Improving your credit rating starts with looking at your current financial situation and ways to improve it. Getting into a good credit position before you apply for a loan can help increase the likelihood of you getting approved.
You can improve your credit score by:
- lowering your credit card limits
- consolidating multiple personal loans and/or credit cards
- limiting your credit enquiries
- paying your rent and bills on time
- paying your mortgage and other loans on time
- paying your credit card off in full each month
A great place to start your credit rating research is ASIC's MoneySmart site.
As your Mortgage Choice broker, I can review your credit history and help you to establish a plan to improve your financial history. If you need any assistance in this matter please don’t hesitate to call us on 02 9653 9333, email: firstname.lastname@example.org or click HERE to arrange a meeting.
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