Boost Your Borrowing Power: Tips to Improve Your Credit Score
A higher credit score can significantly enhance your home loan eligibility and unlock better terms. Here’s how to improve it:
- Pay Bills on Time: Consistent, timely payments are crucial. Set up automatic payments to avoid missed deadlines.
- Reduce Debt: Lower your credit card balances and outstanding loans. Aim for a credit utilization ratio below 30%.
- Check Credit Reports: Regularly review your reports for errors. Dispute any inaccuracies promptly.
- Limit Credit Applications: Multiple applications in a short period can negatively impact your score. Only apply when necessary.
- Keep Old Accounts Open: Longer credit history positively affects your score. Don’t close old accounts, even if unused.
- Diversify Credit Types: A mix of credit cards, instalment loans, and other credit types can boost your score.
- Use Credit Responsibly: Regular, responsible use of credit cards can help build a positive credit history.
Remember, improving your credit score takes time, but it’s a worthwhile investment for better loan terms. Most loan programs require a minimum FICO score of 620, with higher scores leading to more favourable rates and term.
At Buy Invest Live, our experienced brokers can provide personalised advice to help you navigate credit challenges and improve your borrowing power. We’re here to guide you towards your homeownership goals, regardless of your current credit situation.
