Our Top Tips!
Your credit score is one of the main factors lenders look at to decide how much they’re willing to lend you and the interest rate they’ll offer. So, a strong credit score can make all the difference! We’re a leading mortgage advisor and have guided buyers with all kinds of credit scores. Here are some of our top tips, along with why working with us is one of the smartest moves you can make.
Why Your Credit Score Matters
To put it simply, lenders use your credit score to see how reliable you are at managing your debt. A higher score signals that you’re a lower-risk borrower, and this increases your chances of approval and access to better rates. On the other hand, a poor credit score may limit your options. If the latter sounds like you – don’t worry. We have helped many buyers with less-than-ideal credit. Whatever your situation, we do recommend taking the following steps.
Check Your Credit Report
Start by reviewing your credit report to ensure all information is accurate. Mistakes can harm your score, so it’s really important that you dispute any inaccuracies and request corrections promptly. You should access your credit report through a trusted agency. We recommend Experian, Equifax, or TransUnion. Many banks also offer a basic credit check – often within your banking app! So, it couldn’t be easier.
Pay Your Bills on Time
Late or missed payments can really impact your credit score. Paying on time, time after time demonstrates your reliability to lenders. If you struggle to remember what needs to be paid and when, you could set up direct debits or calendar reminders to avoid missed deadlines. So much of building good credit comes down to efficient planning.
Reduce Existing Debt
High levels of debt can negatively affect your score, particularly if you’re using a large portion of your available credit limit. So, focus on paying off credit cards and loans, and aim to use no more than 30% of your credit limit to show that you know how to borrow within your means. You should also avoid applying for new credit cards or loans in the months leading up to your mortgage application.
Build Your Credit History
If you have little or no credit history, it can be challenging for lenders to assess your reliability. That’s why building a positive credit record is essential. You can use a credit card for small, manageable purchases and pay off the balance in full each month. Being on the electoral roll helps too, as it helps confirm your identity and stability. So, if you haven’t registered to vote, make sure you do that!
The Benefits of Working with a Mortgage Broker
When it’s time to apply for a mortgage, working with us can make the process smoother and significantly increase your chances of approval. We will assess your unique financial situation and recommend which steps you can take to improve your credit score. If your credit score isn’t perfect, we can connect you with lenders who are more flexible.
Talk to Us
Improving your credit score is an essential step before applying for a mortgage, and we are here to help! Just talk to us at A Little Mortgage Advice today for expert advice.
