If your credit rating is not up to speed, mortgage brokers in Rockingham or anywhere else won’t be able to secure financing for you. And if you are able to obtain a loan, the terms and interest will make it extremely difficult for you. Here are five things you can do to improve your credit rating.

Pay Your Credit Card Balances Down

The more debt you have in relation to available credit, the lower your credit rating. Even if you have to make lifestyle sacrifices, start paying as much as you can to lower the balances on all of your outstanding credit cards. Also remember that credit card debt is the most expensive because of high interest and fees.

Adopt Great Payment Habits

Start paying everything on time now. No more late payments. Every late payment lowers your credit rating.

Keep Old Accounts Open

A lot of people close their accounts once they pay them off. This can also damage your credit rating because one of the factors involved is the length of your credit history. Long-standing accounts reflect well on your perceived ability to pay.

Be Careful When Applying for New Credit

If you apply for too many loans in too short a time, it will lower your credit score. Only apply for new credit when absolutely necessary. Also, avoid fly-by-night “loan brokers” who send your information to huge numbers of lenders without determining which ones are right for you. Only use a broker who will patiently determine the two or three lenders that match your individual situation.

Diversify

Lenders like to see that you are able to handle a diverse variety of credit, including a home mortgage, a car loan, a personal loan and a credit card.

Call Smartline Rockingham

Whatever your credit score says, call Smartline Rockingham first for personal or home loans in the Rockingham area. We’ll find the right loan for your individual situation (08) 9527 1800.