Importance Of A Good Credit Rating
Industry news : 06 - 01 - 20
When it comes to buying a new house, it is important to check your credit rating to avoid unexpected hurdles along the way. Mortgage companies and lenders will want to confirm that you are credible and they can check this by looking into your personal credit report.
Whenever you apply for a credit or loan it will be recorded on your credit report, therefore lenders and mortgage companies may be concerned if there are many credit applications in a short period of time.
It could appear to them that you may be dependent on credit and as a result your credit score could go down.
By checking your score in advance of applying for a mortgage, you can gain an idea of how lenders see your financial standing, and whether you need to take some action to improve it.
The higher your score the better your credit standing and your chance of being approved for a mortgage with a desirable interest rate.
There are some steps that you can take to improve your score – always avoid late payments, pay back anything overdue, and ensure any further payments are on time. Paying back more than the minimum each month will help reduce your overall debt.
The free Experian Credit Score will help you to understand your financial standing and how lenders will view you.
Check your credit score HERE
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