When you’re looking to purchase a property, it’s really important that your credit score is at an acceptable point so that your mortgage application doesn’t get rejected. Instead of waiting til you apply to do anything about it, it’s important to try and make changes beforehand, because it can take time to improve your score. It’s worth looking at well in advance of trying to buy a property or sell your home.
Here are a few tips for improving your score and putting you in the best position possible.
Bills
If you’re renting a property or a partner/housemate usually pays bills, then put some of them in your name, so you can build your rating. This can show lenders how you handle your money, so taking on bills, paying them on time will help to gradually build your rating.
Payments
Carrying on in the same vein, making gradual payments and paying off your credit card over the month will build your rating. Instead of just waiting to pay it all off once a month, doing it over the month is a good strategy. You can do this for mobile payments, utility bills and any other household payments, just ensure that you don’t incur any overdue payments.
Check Joint Accounts
When you have accounts that are joint or linked to another person, it’s worth remembering that they can have an impact on your personal credit score to, so keeping them in check is really important. Make sure action in this account in the run up to any mortgage related activity is kept responsible.
Clearing Debt
It’s not uncommon to have debt, but this can unfortunately affect your credit score rating. To the best of your ability, try to clear your debts as much as possible. This might mean working out some new payment arrangements with a provider or accessing support. Don’t get a new credit card to try and pay off other debts, as this will only lower your credit score further.
Credit Card Use
It’s a strange concept but your credit score is affected by not having a credit card at all. Keeping your use low is a good idea and making small payments over the month will improve your score. Remember that every time you apply for credit or loans though, your credit score will go down, but will improve again.
Correct Details
Credit scorers need to keep track of your details and location, which means that keeping your address up-to-date is obviously essential. Registering on the electoral roll is a way to sync with credit scorer sites, so if you have moved or are at a new address then when your address is available you can register. The longer you live at an address, the more your credit score will build.
For any more advice or information about buying or selling a property and the process you need to go through to do this, get in touch with our experienced team today at Home EA.
