How to: Improve your financial attractiveness to lenders
IF you’re applying for a loan such as a mortgage in the near future, a good credit score will be a key indicator to lenders of what sort of deal they should offer you.
Here are some tips from broker service, the Mortgage Advice Bureau:
REGISTER to vote. The electoral roll provides proof of your address and not being registered could increase the likelihood of an application being flagged as fraudulent.
HAVING a landline telephone number could signify stability to a lender, especially combined with other factors, such as time at current address.
PROVING you have a good history when it comes to managing your finances is important. Having a history of bank accounts, such as a current account, savings account, Isa and a credit card, will give your lender an indication of your credit history.
MAKE sure all of your bills are registered to your current address with your correct name. This way, everything is easy to trace back to you and confirms your identity.
KEEP a good amount of available credit. Available credit is the difference between what your outstanding balance is and your total credit limit. If your available credit is low, this could indicate you’re struggling to keep control of your finances.
ALWAYS make repayments. Missing repayments could suggest you can’t manage your finances well, which isn’t great if you’re trying to get a mortgage.