How do i get my credit score higher
How your credit score really affects your mortgage.
A mortgage is probably the biggest financial commitment you’re ever going to make, and there are many different types of mortgage out there – from fixed-rate and variable rate to repayment and interest-only.
One of your biggest concerns is probably going to be the amount that you pay each month. This will depend on a number of things – the type of mortgage you go for, the amount that you borrow, but most importantly, the interest rate on the mortgage. So you need to make sure that you find the best deal for you.
When you apply for a mortgage, your lender –the bank or building society – will use the information on your application form, along with the information in your credit report, to give you a credit score. By checking your Experian Credit Score you’ll get a good indication of how successful your mortgage application might be. Your credit report includes details about whether you’ve kept up to date with payments on loans and credit cards, and the total level of credit that you already have. The credit score the lender gives you tells them whether to accept you as a customer or not –
the higher your credit score, the better your chances are of getting your mortgage.
you could end up paying less every month
And that’s not all, the better your credit score, the better the deal you might get with a lender. If you have a high credit score, you’re generally seen as a lower risk. This means that you may be able to get a mortgage with a lower interest rate, or one that has a discount rate. So a better credit score means that you could end up paying less every month.
It can pay for you to use a mortgage broker or adviser as they have an in-depth understanding of the mortgages that lenders are giving out, and who they’re giving them to. If you get your credit report and show it to a broker, they may well be able to point you in the direction of the best deal - which could give you a better chance of being accepted. And there’s plenty you can do to improve your credit score. such as making sure payments on credit cards and loans are all up to date, and bringing balances down. This gives you an even better chance of getting the best mortgage available.Source: www.experian.co.uk