Have you ever wondered what your credit rating is? Many of us don’t actually know how our score is faring as not everybody obtains their own personal credit report. In fact, not everybody in the country knows they can receive a copy of their credit rating.
Your score is extremely important, asit can affect how much you can borrow from banks and mortgage lenders.
What is a credit report?
A credit report is a history of all the credit you have ever borrowed. This can include personal or business loans from banks, hire purchases, mortgages,credit cards, mobile phone or internet plans, and store cards.
When you obtain one of these financial services, it will be included in your report. The report will also show whether you have had any defaults or outstanding debt.
Why is it important?
When you apply for finance – such as credit cards or low doc home loans – your lender will assess your credit score. If you’ve had any bad credit listings, then you might be restricted on lenders you can borrow from, or the amount you can access. In turn, this can make buying a house a hard task.
What can I do?
If you’re thinking of obtaining a mortgage, then an extremely important first step is to obtain a copy of your credit rating. This can show you which debtsyou currently have and any you have previously paid off.
It’s a good idea to double check that everything is correct, as even the smallest mistake may affect your next application for finance.
If there are any bad listings, then make a point to repair your credit. This can be done by negotiating with previous lenders to pay off existing debt or consolidating your loans to pay them off sooner.
Should you receive bad listings in your report, then you can still access a mortgage through bad credit home loans. For more information on bad credit mortgages and how to repair your credit, get in touch with an expert at Redrock.
