How Do You Fix Bad Credit?
Potential borrowers researching the various aspects of home loan applications may want to learn more about how they can fix bad credit. In Australia, mortgage lenders generally like to see credit scores between 500 and 700, the closer to 700 the better. Due to this, credit scores below 500 are generally seen as bad credit.
When a potential borrower applies for a home loan with a mortgage lender, the lender will perform in-depth checks on the applicant’s financial history, including their credit score. An applicant’s financial history and credit score largely impact their potential of becoming approved for a home loan, as well as their borrowing power. Borrowing power refers to the amount of money a mortgage lender will lend a potential borrower.
Potential borrowers can begin fixing their bad credit by following various steps, including the following examples:
- Paying off any existing debt, including high credit card balances
- Paying bills in full and on time every month
- Avoiding being required to pay late fees
- Limit credit applications
- Ensure credit card balances remain low
Additionally, mortgage lenders can be great assets to potential borrowers looking to fi their bad credit. Mortgage lenders are also able to assist potential borrowers with creating a budget that works well with the potential borrower’s financial capabilities.
Mortgage House is a non-bank lender with various bad credit home loan offerings. If you are interested in learning more or are ready to apply for a home loan, reach out to our mortgage lenders for assistance.