Improving your credit score

When applying for finance for a home, the status of your credit score could be quite nerve-wrecking. Your credit score is calculated according to your past financial activity. A higher rating increases your chances of an approved home loan.

There are ways to improve your credit score. Whilst some may take a long term effect to see an improvement, some methods may have an immediate boost on your score;

• Check your report for errors to ensure all information is correct
• Try to pay off as many debts as possible. Settling and closing accounts will positively impact your score
• Credit cards carry the highest interest rates. Reduce your credit utilization ratio by ensuring your utilisation is at 30% or lower. Paying your instalment prior to the due date is advisable
• Avoid taking on new debts and accounts
• If married, make sure that your spouse follows these steps as well to overall improve the chances of a home loan