Brighter Buying

Buying this year? Check your credit score!

by Karleen Jentz, Copywriter 2 February 2018

Santa was kind last year, very kind. Aussie’s racked up a $29 billion debt bonanza on their credit cards this Christmas.

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.