What affects your credit score?

There’s a road that more and more Australians are choosing to go down: Home ownership. From building a property investment nestegg for retirement, to providing a long-term home for your family, there is a wide array of benefits to securing a house in this day and age.

Once you’ve made the big decision to track down your dream property, the next step is to approach your mortgage broker about taking out a home loan – but what are some of the things that could boost your chances of a successful application?

The big one is your credit history. A lender will take a look at what you’ve been up to in the world of credit, such as requesting a new card or paying your bills. You needn’t worry, though. Here are some things that can put you in a good light.

Paying utility bills

Bills are a part of everyday life. We can’t escape them! From electricity to internet, mobile phone to gas, your household bills are probably coloured by these everyday services.

But did you know that paying your providers on time and in full can make you look like a more reliable home loan applicant? If you miss a payment, a telco or other utility company can put a little mark on your report noting that the payment is overdue – but they also need to update the entry to ‘paid’ once you’ve caught up.

So why not get ahead of the curve? Stay on top of your bills and there’ll be smooth sailing ahead.

Keeping credit cards low

No, this doesn’t mean keeping your cards underground (although, at Christmas, that does seem like a good idea!). Your history will show all the times you’ve taken out a new card, as well as the balance on your existing ones. If you’re a dab hand at paying the minimum amount on your cards every month, this will give your credit worthiness a leg up – and you’ll have no problems getting that home loan!