One of the best ways to improve your chances of getting a home loan is to improve your credit score. It’s because better credit scores can give you access to better interest rates and more beneficial home loan products.

Here’s a list of some quick tips to help you get the best credit score possible. While there’s no guarantee that all of these options will immediately increase your credit score, they can help you establish habits that will strengthen your credit score.

Show that you can pay your bills on time, every time

Lenders/credit providers will want to see that you can repay a mortgage loan on time. So here’s a list of bills you need to pay on time, every time:

>> Your credit cards;

>> Your rent;

>> Your medical and utility bills; Y

>> Any other service that a collection agency may use for the recovery of delinquent accounts.

If you miss a payment date by a few days, call the service provider right away to make the payment, and don’t be afraid to ask the provider for a one-time waiver.

Check your credit score

You should regularly check your credit report with a credit reporting agency (such as Veda Advantage and Dunn and Bradstreet), because:

>> Give you an idea of ​​whether you have a history of defaults or negative refunds on your report;

>> Give you time to correct the credit report before a lender/credit counselor accesses your report; Y

>> Allow you to check your credit score with a credit reporting agency.

Note: You should be aware that due to changes in the Privacy Act in March 2014lenders/credit providers have the ability to access your credit reports and can view the last 24 months of your payment history.

Keep Your Credit Available

Before applying for a home loan, do not open any other credit cards or lines of credit. It’s because lenders/credit providers will see you as a risk if you suddenly take out loans for cars, electronics, furniture, etc.

Also, refrain from closing your credit cards or other lines of credit. Instead, consider paying off your balances as lower debt will improve your debt-to-credit ratio.

This is best illustrated by the following example:

Having a total debt of $4,000 with available credit of $20,000 will look better than having only $500 in debt with available credit of $800.

Establish a savings history

If you borrow more than 80 percent of the purchase price of the property, you will need to meet the lenders/credit providers’ “genuine savings” requirements. Your savings should add up to about 5 percent of the purchase price of the property.

For example, at a purchase price of $700,000, you would need to have savings totaling $35,000.

Note: Saving a larger deposit should help reduce or avoid paying “Lenders Mortgage Insurance” (LMI) and even the lender/credit provider may offer you a more competitive interest rate.

Avoid applying with too many lenders/credit providers

Avoid submitting your home loan applications to several different lenders/credit providers at once. It’s because these loan applications will show up on your credit report. You just have to submit your mortgage loan application:

>> After comparing lenders/credit providers; Y

>> After you have decided to go with a particular lender/credit provider.

Your Job Stability

If you’ve had the same job for several years, then this is a big step. Therefore, before applying for a home loan, try to establish a stable employment history, as this will allow you to make regular loan payments.

If you’ve recently changed jobs, don’t worry. You may qualify for lenders/credit providers if:

>> You’ve been in a similar role; Y

>> You’ve been in the same industry.

Disseminate all information

Lenders/credit providers may think you have other debts that have not been disclosed. Therefore, always be truthful and disclose all information, as non-disclosure of relevant information may result in the rejection of your home loan application.

Seek expert and professional advice

All of these tips should help you improve your credit score. However, you should speak with a professionally qualified and knowledgeable financial broker who can help you create a personalized credit improvement plan. Establishing this relationship with a finance broker will help you determine which potential lender/credit provider is best suited for your needs.

All the best!