An important aspect of taking out a home loan is having a decent credit rating. If you’ve had trouble in the past, there are always bad credit home loans available to help you achieve your property goals in Australia. However, sometimes having no credit is worse than bad credit, highlighting that you’ve got little to no experience with credit products.
Luckily, there are a number of ways to begin building a credit rating in Australia, which is an essential part of seeking out and securing the perfect mortgage for your real estate dreams.
Take out a credit card
One of the easiest ways to build a credit rating is to simply apply for a credit card. Once you have the card, making purchases on it and promptly repaying the owed amount will help you rapidly build a strong credit rating by highlighting your ability to make repayments in full and on time.
Furthermore, opening a bank account and having a steady stream of money coming in and out – as well as a developing savings account – will work wonders towards creating a credit rating to be proud of.
Make bill payments on time
Credit ratings are about proving to the lender that you’re a trustworthy, reliable candidate for their product. This means giving them the peace of mind to know they will be able to get their investment back in the future.
Making bill payments on time highlights your reliability, especially when it comes to making payments you owe. Without this type of backing, it could be more difficult than usual to convince a home loan provider to consider your application.
If you’re interested in applying for a bad credit or low doc home loan, get in touch with the team at Redrock today to discuss the options available to you.