A top tip for first buyers who wonder how they can get the best possible mortgage interest to work on increasing your creditworthiness.
Obtaining the lowest possible rate means that your repayments are also lower and this will help with your affordability.
But having a bad credit score can be locked completely from homeowner. So being aware of what you have to do to ensure that your credit report is in good condition, all potential buyers of Huizen will benefit.
According to the free credit score app, credible, bad credit scores still docked thousands tenants From the mortgage king. It revealed that it had seen an increase in users who recently checked their reports and tried to solve bad scores.
AARON PAEKE, Credit score expert at Credibilitysaid: “We hear from tenants every day who do everything well. They pay their rental on time, manage their bills, but are still told that they are not ready for mortgage. The system feels unfair, but your credit score is one thing you can control.
“If you are serious to buy this year or next, this is the time to increase your score. A stronger credit score can increase lower rates, smaller monthly payments and a much faster path to own a house.”
Here he shares six ways to give your credit score a lift.
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Let your rent count
Rent is often your biggest monthly account, says Peake, but most credit reports ignore it. “Free services such as Credit Laad or Luifel can send your rental details to credit agencies,” he said. “If you pay on time, this appears as a regular, reliable payment, just like a mortgage would make.”
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Do not close old credit cards
“It feels logical to cut an old credit card once it has been paid off, but does not close it unless there is a fee,” Peake advises.
“Keeping older accounts open shows lenders that you have long managed credit, which can bump your score.”
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Save credit use below 30%
For those credit cards You use, expenses to your credit limit is a red flag for lenders, Peake explains.
“Even if you always pay on time, the use of too much can seem like you are overloaded,” he added. “Try to keep your credit consumption among 30% of your limit to show that you are not too relative when borrowing.”
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Check for errors
Believe it or not, mistakes are more common than you think on credit reports. Peake said he had seen everything, from old addresses that are still mentioned as mysterious accounts swear people that they have never opened before.
“You can check your report for free via apps such as credibility or full money,” he said, and it is worth doing every few months to keep it accurate. “
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Register to vote
Registering to vote, if you don’t have that yet, is fast, free and gives your score a noticeable push in the right direction, Peake said.
“Being on the election role helps money lenders to confirm your ID and address, which builds up trust. It only takes a few minutes gov.uk/register-to-voteBut it is something that many people forget. “
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Keep new applications
“Every credit application leaves a stamp on your file for six months,” said Peake. “Too much in a short time can make lenders nervous. If you request a mortgage, avoid taking a new credit in the six months in advance.”