But unlike Santa, your bank isn’t likely to be so generous when you go cap in hand asking for more credit.
So if you’re thinking of buying a home in 2018, now is the time to get your debt in order.
First things first. Do you know your credit score?
A credit agency will assess your credit score when you apply for a loan, be it a credit card, a personal loan or a mortgage. You can learn more about credit scores in this in-depth article on Property Update.
But here are the key points it pays to remember.
You can get a free copy of your credit score by requesting a credit report from a major credit reporting agency. Property Update suggests Veda or Dun & Bradstreet.
If you don’t like what you see on your credit report, there are things you can do to improve your credit score:
- Pay down existing debts
- Keep unused bank accounts open
- Open several types of credit lines and don’t default on payments
- Pay your bills on time.
Most Aussies have no problems with their credit scores. But what if you have no credit score or a poor credit score? This may not rule you out of getting a mortgage but it could mean you need someone to be a guarantor or banks may charge you a higher rate if they think you are a higher risk.
Talk to a financial advisor or mortgage broker to get good advice specific to your situation.
Got credit in the bag and ready to buy? View our current listings for sale.