14 Dec 2016
How to Improve a Bad Credit Score
Your credit score is a measurement of how “creditworthy” you are. It is the result of an analysis of your financial records, used by lenders and banks to evaluate the potential risk of lending money to you.
Naturally, if you’re looking to get a home loan (or any kind of loan), it’s important that your credit score be strong. Lenders will be reticent to give you a home loan if you have a track record of poor financial management.
You can check your credit score for free online. There are free resources online through which you can find out, such as getcreditscore.com.
If your credit score is too poor to get a loan, there are ways you can turn things around. Here are a few suggestions:
Automated bills
Many people simply forget to make their payments because there’s so much to keep track of. It can be easy to overlook a bill when you have so many.
One way to handle this issue is set-and-forget automation. Set your bills and payments to be paid automatically, and you won’t have to think about it.
Debt consolidation
If your credit score is low, it could in part be due to defaults and failed payments. Many people struggle to manage various debts (with various interest rates), which sometimes leads to defaulting payments.
There isn’t much that can be done if you already have a negative credit score as a result of defaulting payments, but you can mitigate the damage by consolidating your debts.
Debt consolidation converts all your varied debts into a single debt. One payment a month to worry about – and that’s it! If you want to know more, you can contact us about consolidating your debts today here.
Up to date information
Your credit score takes into account other information about you as well – such as marriage or employer. It can be a good sign to a lender if you’ve been with your current employer for more than two years, for example.
If you suspect these details are missing from your credit score, notify a credit reporting agency.
Mortgage House
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.