March 15, 2022 by Marvin Coleman
My job is to understand your financial circumstances, then help find and secure the best home loan or mortgage for you. After establishing your objectives, I will then ask you about your Credit Score.
Your Credit Score is a summary of your financial reputation.
Whenever you look to borrow money - from a payment purchase plan through to a credit card, personal loan or a mortgage or home loan - one of the first actions the lender will take is to check your Credit Score.
The better your Credit Score, the better your borrowing outcome...whether it's an approval of your loan, or even at better rates or other terms if you're seen as a better (lower risk) borrower. Your score will be between zero and - depending on the credit reporting agency - either 1,000 or 1,200. The higher your score, the better (ie you are seen as a lower risk borrower).
Your credit score is calculated based on factors such as:
- the amount of money you’ve borrowed
- the number of credit applications you’ve made
- whether you pay on time.
Steps you can take to help improve your Credit Score include:
- lower your credit card limit
- limit how many applications you make for credit
- pay ALL your bills on time, especially your rent or mortgage, utility bills and credit card
- a stable lifestyle (few address changes) and good savings track record can also help.
Do you know your Credit Score?
You have a right to get a copy of your credit report for free every 3 months. MoneySmart suggest it's worth checking it at least once a year. This is to not only understand your position but, importantly, correct any errors if they exist. This is called Credit Repair.
If you need any advice on preparing to buy a home, book a free call with me. My job is to understand your financial circumstances, then help find and secure the best home loan or mortgage for you.
Cheers, Marvin Ph 0431 376 008
