Understanding Your Credit Score

Understanding Your Credit Score and Improving It

Your credit score plays a crucial role in mortgage approval and determining interest rates. Understanding and improving your score can significantly impact your home buying journey.

Start by obtaining your credit report from major credit reference agencies. Check for errors and dispute any inaccuracies. Ensure you're registered on the electoral roll at your current address. Pay all bills and credit commitments on time - set up direct debits to avoid missed payments.

Reduce existing debt and avoid taking on new credit in the months before applying for a mortgage. Keep credit utilization low on any credit cards. Consider a credit-building card if you have limited credit history. Don't make multiple credit applications in a short period.

Close unused credit accounts but maintain older accounts to show a longer credit history. Review your financial associations and remove links to people you no longer have connections with.