Your credit score is an indicator of your likelihood to repay money you have been lent. Your score is calculated in a more complex way because it takes into account many aspects of your financial behaviour.
Experian is one of many organisations that can tell you what your credit score is. Visit the Money Advice Service website for independent advice. It has a section about improving your credit rating.
You could also talk to a trusted local source, such as Gloucester Estate Agents like www.mwea.co.uk, who can give you unbiased advice and help you start looking for the right property for you at the right price.
Use these tips to improve your credit score and get the mortgage that you want.
Balance your accounts
Your credit score will be affected if you use every penny of your available credit each month. Lenders prefer to see that you are only using a third of your available credit. They will assume that you are under financial stress if they don’t see this. Use your credit card only when absolutely necessary.
Small amounts of credit can be repaid
If you have multiple cards, your score will be reduced by more points. Get rid of any small balances you may have on multiple cards so that you can close the account completely.
Do not get rid of your good debt
You should not make paying off your debts a priority if you receive a windfall. A credit score is boosted by debt that has been paid on time.
Pay on Time
It is important to pay your credit card and loan payments in full. It’s actually one of the most important indicators for lenders. Remember that your score is based on your credit report. It’s like a journal, showing how you have paid on time over the years.
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