If you have a low credit score, there are many ways to improve it. Here are some easy ways to improve your credit on your own:
- Lower your limit on your credit card
- Close credit cards with low limits that you don’t use often
- Don’t apply for new credit cards and loans until your credit score improves.
- Pay your bills on time every month, including rent or mortgage, utilities, student loans, medical bills, credit cards, etc.
- If possible, pay more than the minimum repayment amount on any of the above bills.
- If possible, divide the repayment amount over the month. For example, instead of paying $200 on the due date, pay 50 dollars every week.
Why should you fix your credit score?
Having a good credit score is essential. Not only does having a good credit score improve your ability to secure loans and credit cards with favourable terms and beneficial features, but it also gives you access to savings caused by lower interest rates on large loans. For example, if you apply for a home loan and have a low credit score, your interest rate will most likely be higher than another individual applying for the same size loan with a higher credit score. This higher interest rate could cost you thousands of dollars over your loan term.
Even with a bad credit score, you can still get a home loan from Mortgage House. We specialise in bad credit home loans and offer competitive interest rates. When your credit score improves, you may be able to refinance with us.
