Tips to Improve Your Credit Rating to Prepare for a Mortgage Application

Your credit rating can define many parts of your life. One area that it can affect is your ability to get a mortgage. It is always better to have a good credit rating as it really can grease the wheels and make everything that bit easier. Here are some of the things that you can do to improve your credit rating as you prepare for a mortgage application.

See Your Credit Report

The first thing you need to do is take a look at your credit report to see how it currently stands. You can easily request it from a number of places. Credit checks won’t affect your overall score, so don’t be afraid to apply for one – it is a good idea to know what your rating is.

Once you have your report, make sure that all of the information on it is up to date. You then need to go through the report to check that it is all up to date. All of your accounts and cards need to be listed, and you need to make sure that there is a record of all defaulted payments and other issues. Even something from years ago can have a negative impact if it is not dealt with properly.

Sever Out-Dated Financial Links

When you open a joint account with someone, you will be affected by their credit score and vice versa. If you choose to buy a house with this person then you might both be taking steps to improve your credit score. However, if you are still financially connected to someone that you shouldn’t be, you might end up being negatively affected by their credit score.

It could be an ex-partner, or it could even be an old flatmate who you shared an account with for the purposes of paying bills. No matter what, make sure that you have severed any old connections so that their credit ratings cannot affect your ability to secure a mortgage.

Prove You Can Manage Your Finances

A credit score proves that you are able to successfully manage your finances, whatever form that might take. You need to make sure that you can demonstrate that you can make outstanding payments on time, and manage any debt you have.

One way to do this is to ensure that all of your bills are paid by direct debit. This means that payments will automatically come out of your account, and you can neatly avoid having to scramble to pay a bill on time. You should also think about taking out a credit card and ensuring that you fully repay the balance each month, regardless of what your credit limit and rate of interest might be.

If you are able to do each of the above points, you should be well on your way to improving your credit rating, and one step closer to buying your dream property. Get in touch with GPD Mortgage Solutions today to find out more about what you can do to prepare for your mortgage application.