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Buying a house probably ranks amongst the most important and exciting things a person will ever do over the course of their lifetime but unless you are lucky enough to be independently wealthy, you will probably need a home loan to get your foot on the property ladder.
Below are just a few of the ways you can improve your credit score. As previously mentioned, it might take time and you will need to discipline yourself if you are accustomed to a more carefree financial lifestyle.
#1 Paying Bills On Time
This may sound obvious but paying your bills on time every time does enhance your credit rating. Having a consistent record of punctual payments clearly show lenders you possess fiscal discipline. Defaulting on a payment can and will have the opposite effect.
#2 Don’t Apply For New Credit
Unless you are 100% debt-free it is a bad idea to apply for any new credit. Put off the new car, kitchen or long haul holiday until all your debts are paid. Your credit score will thank you for it.
#3 Making Debt And Loan Repayment A Priority
If you are committed to getting that home loan application approved, make repaying loans and debts a priority. Borrow from friends and family if necessary or possible.
#4 Keep Your Credit Card Balance Low
In this day and age we all need a credit card. In fact, many retailers have stopped accepting cash payments, so this makes some sort of card essential. If at all possible, keep your balance as low as possible and pay off the whole amount every month. If you have a high balance outstanding, it might be worth changing credit card provider to one that provides an interest free balance transfer.
If you can stick rigidly to the points detailed above, your credit score will improve over time and you significantly enhance your chances of being approved for a home loan.
Get A Home Loan
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