Buying a property ? Its related to Credit scoring GREATLY

Many people don't even know anything about the financial side of applying for credit to buy a property. This is called a mortgage. A mortgage is basically a giant loan with an interest rate lower than a typical loan %.

In order for a lender to give you a mortgage they will consider your annual income, your outgoings, your current loans/credit card payments etc, then they will calculate how much you are entitled to borrow.

If you have some money saved, which is 5-10% of the value of the property, then you can use this as a down payment/ deposit and give it to the lender. This will make your monthly payments lower.

So what has a mortgage got to do with credit history? a lot infact. When lenders decide whether to give you credit or not, they see what your credit score is like and if you have a bad history of making payments late, have ccjs, and other arrays then they will see you as a bad payer, and would consider it a high risk to lend you money as you seem incapable of paying it back, just by looking at the behavior of your credit report.

Tip - If you know you are buying a property within a year, then then 9 months before clean up your credit history. this can be by using your credit card to purchases something and then pay off the minimum payments every month. MAKE SURE you DON'T miss a payment, or it will show you as a bad payer.

In the 9 months if you complete all 9 payments then you are showing that you are an Excellent payer, and trustworthy. This gives the lender a higher chance of giving you the money, rather than them turning you down, which is what they would have done if you had made loads of late payments.

I'm looking at getting my property soon - within 6 months, so have some work to do on my credit report,,,, haha.


Its Amazing...
Borrow money that you don't have to repay back
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