first time buyers advice – Whenever we take on credit, whether for a home loan, a credit card or a car finance programmed, it is noted on our credit history. This history builds up over time into a long chain of events giving banks some idea of how good we are at managing credit.
first time buyers advice – Along with the time, date and amount we borrow, how we pay it back is also noted. If we regularly take on credit but manage it well, i.e. we pay the loan off in full according to the loan agreement, we will be rewarded for our efforts with a good credit rating.
However, if you falter, fail to make payments and/or make late payments your credit rating will be poor. Improving credit Our credit rating is important because it is the key to opening the vault doors, so to speak, of banks and building societies. A good credit rating gets you more credit; a bad credit rating closes and locks doors meaning you won’t get any credit now or in the future; one wrong move can have a long lasting effect. But there’s a rather strange anomaly that is often left unexplained concerning credit ratings. If you have never or very rarely take on credit you will also have a bad credit rating, because to get a credit rating you need to have credit.
For first time buyers this is problematic. If you’ve never owned a house and taken out a mortgage, your only other options are credit and store cards and finance programmes. Many young people have very little credit history to speak of as a result. But how can we find out what our credit rating is? If I wanted to find out whether I had a good or bad rating right now I could check my credit rating with Credit Expert.
I’ll just have to supply a few details and I’ll get a full run down of my credit history and my current credit score, which allows me to act on it if it is lower than I expect. Ways to improve credit So what can we do if we find our credit rating is lower than we expected? First things first, check all the information is correct. Credit reports are a compilation of information drawn from your credit history and the electoral role. If the information on the electoral role is out of date your credit rating will be affected. Secondly, make sure you have no outstanding debts.
You don’t need to pay everything off, but you should make sure there are no outstanding bills. Thirdly, if you haven’t got a credit history, start one. Get a credit card and start using it; but use it wisely. Make sure you pay off the full amount every month. You can now compare credit cards with Google.