When looking for finance, one of the key elements is your credit. By having a good credit rating, you will enhance your ability to get a better deal on your finance, meaning your home loan will cost less in the end. However, if you have bad credit, then you need to take drastic action now before it is too late.
Simply being aware of what your credit rating is helps immensely. Find out what your rating and history are before you go and see any finance company, this is a must.
Often people will discover that there is a mistake and their credit is worse than it should be. Scrutinize everything very carefully and ensure that you understand and agree with the entire history.
Make sure that any mistakes are corrected before you approach any finance companies, as this will really help. In some cases, doing just this could save you thousands of dollars in interest repayments.
Being aware of what your credit rating is can help you to improve it, no matter how bad it is to start with. On the other hand, if you have a good credit rating, say beyond 750, there is not much you can do to better it. But if you have something under 750, then even boosting it by a couple of points can make a real difference.
Make payments on any credit lines is a could way to boost your credit rating. Begin to do this as early as you can, with the minimum recommended time being at least two to three months before you need to apply for a loan, but preferably longer if you can.
Also, ensure that you pay all of your accounts when they are due in the time before you start looking for finance. Be careful not to close any old credit cards, particularly if your current ones are heavily in debt. Doing this will have a negative effect on your overall credit.
One trick is to always hold onto the credit card you’ve had the longest. Another good idea is to shift the balance around your cards, minimizing the debt across cards rather than having it all on one, but the best idea is to not have much on any.
Eric Bradley has been writing articles about credit for the past two years.