Your score helps lenders determine whether you are a safe borrower. A higher credit score generally indicates a lower risk. A low credit score or a bad credit history can have a serious impact on your finances and your chances of obtaining a home mortgage. It’s possible to improve a credit score despite the fact that it has been a concern for many years. You can improve your credit rating in 5 different ways.
How to improve your credit rating
1. Repay your bills/repayments on time
It may seem obvious, but many people overlook their bills. Set up a direct debit payment for your monthly bill. Make sure you pay off your monthly bills and repay them on time. This will help your credit score to improve.
2. Credit cards: Think twice before you apply
Do not apply for too many credit cards. Only get credit when necessary. This will save you the hassle of repaying debts and improve your credit score.
3. Utilize your credit generously
Always stay within your credit limit. You can improve your credit score by using your credit card generously.
4. Repay any defaults that have already occurred
To get back on track, you must pay any arrears that have accumulated, such as loan repayments and credit card payments or utility bills overdue by more than 60 calendar days.
5. Old debts on display
It is great to add old debts, such as a car or personal loan, that you have paid back on time. Your ability to repay your debts increases when you show off your paid-off debts.
Contact us to get assistance in getting your credit score back on track. Our experts can help get your credit back on track so you can obtain a loan. Our brokers in Point Cook are also able to help with mortgages and refinancing.