Check out your score to see if you’re financially fit
BUYING a house for the first time can be challenging, particularly for those without the help of the Bank of Mum and Dad.
James Jones, head of consumer affairs at Experian, advises that before you even think about purchasing a property, you need to ensure you are financially healthy.
He said: “An important step to being financially fit is understanding your credit history.
“Any unexpected surprises can have an impact on your mortgage application.
“So, before you take the first step towards getting your mortgage, make sure you have your finances in order.
“Checking your credit score is essential to see how lenders may view you.
“Experian offers this service for free no matter how many time you use it.
“Also go beyond your credit score and check your credit report to make sure everything is up to date.
“Tell the credit reference agency you are using if you disagree with any information on your report.
“Try to avoid making other credit applications in the six months prior to making a mortgage application, as it could look like you are struggling financially and can have a negative impact on your credit score,” added James.
“Lenders can take into account your available credit limits, and are likely to view low ‘utilisation’ as an indication of low risk.
So try to keep the balances on your card account as low as possible.
“It is of course vitally important to meet any agreed current repayments you have and paying a little more than your agreed minimum card repayments will not only reduce your balance more quickly but will also be a positive factor for your credit rating.”