A robust credit score is key to securing favourable mortgage rates and borrowing options.
If you're planning to purchase a home, here's how to elevate your credit score before applying for a mortgage.
Check Your Credit Report Regularly
Obtain your credit report from major UK credit reference agencies like Experian, Equifax, or TransUnion. Scrutinise it for errors or outdated information that might be lowering your score, and dispute inaccuracies promptly.
Register on the Electoral Roll
Ensure you’re registered to vote at your current address.
This not only aids lenders in verifying your identity but also enhances your credit score.
Pay Your Bills on Time
Timely bill payments significantly contribute to a strong credit history.
Set up direct debits for regular payments to avoid missing any.
Reduce Your Debt Utilisation
Aim to keep your credit utilisation below 30%.
For instance, if your credit limit is £2,000, try not to exceed £600 in outstanding balances.
Avoid Applying for Too Much Credit
Frequent credit applications can harm your score.
Apply for credit only when necessary and avoid unnecessary searches on your report.
Pay Off Outstanding Debts Strategically
Prioritise paying down high-interest debts first.
This strategy saves money and enhances your credit score.
Keep Old Credit Accounts Active
Length of credit history affects your score, so refrain from closing old accounts unless absolutely essential.
Improving your credit score requires time and discipline, but the benefits are substantial.
A higher score can unlock more competitive mortgage deals, making your home-buying journey smoother and more cost-effective.
Our Fine & Country Estate Agents team is here to support you with expert advice as you prepare for this significant step.
