Clean Up Your Credit

When it comes to securing home loans, everything counts. Your personal income, living expenses and savings are all considered as part of a lender's assessment.

But perhaps one of the most important factors is your credit history. Your spending habits in recent years, payment history and open credit cards all impact on your borrowing capacity.

This means that any active credit cards you have are tallied in your assessment – even ones that you don't ever use and have no balance on.

Department store credit cards are also included, so it is important that you be careful what you sign on for and keep close track of any loose ends.

If it is possible to close cards down or consolidate balances, it is highly recommended that you do so to avoid negative points.

It goes without saying that you should attempt to pay off any remaining credit balances and existing personal loans.

However, if this is beyond your means for the foreseeable future, it would be more beneficial to set up a budget.

Putting aside a set amount each payday will help you to methodically pay off your debt and will give you a nice record of making regular payments to show to your lender.

To get more detailed information on your situation, talk to a Loan Market mortgage broker today.

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