Note: Today’s article comes from Crediful! Check them out!

Whether you are seeking out a loan, mortgaging your house, or pursuing a job – your credit score can have a massive impact on the opportunities you have and the rates you are offered.

Having ‘Good’ or ‘Excellent’ credit scores can leave you open to favourable rates on repayments or solutions and packages that depend upon your reliable repayment history.

Possessing ‘Bad’ credit can quickly result in banks or lenders taking a less than favourable approach to your credit or loan requests and even see some institutions refuse to lend to you entirely. At best, this can be frustrating and result in the expenditure of extra effort to find favourable rates. At the worst, this can see you locked out of opportunities for lending when you truly need it most.

What causes it and how can it affect my mortgage lending?

Generally speaking, ‘Bad’ credit is caused by a previous history of failing to repay debts, meet required payments on your credit cards, or defaulting on loans of all sizes. Depending on the country you live in, this can take other elements into consideration such as failure to pay tax, previous legal judgments that were made against you that involved penalties, and significant events such as bankruptcy and foreclosure. 

If you are seeking to secure a quality mortgage on your home, one of the biggest obstacles you may face is dealing with bad credit. As your score is an indicator of how statistically likely you are to repay or default on debt, this can give companies pause to lend to you. This can lead to anything from unfavourable rates or flat-out refusing your request for a mortgage.

What should I consider about Mortgages and Credit?

If you are actively seeking out a fair and equitable mortgage, the following can help.

Being constantly aware: If you want to avoid issues around bad credit, it’s helpful to take steps to avoid it in the first place. Take time to familiarise yourself with the risks as early as possible and, while paying your bills on time is always easier said than done, be sure that you know the risks before you take actions that you may regret later in life. 

Repair it!: Like the ancient proverb, the best time to start fixing your credit score was in the past. The second best time; today! You can easily start taking steps to try and repair your credit score such as using tried and tested credit repair techniques or disputing elements on your report. While this can be time consuming, the long-term benefits can be significant. 

Finding a provider: Once you are taking active steps to resolve your credit issues, it’s important to find a lender that has experience working with individuals in your situation and will be willing to provide the fair support that you need. 

What should I do next? If you want to learn more about how you can improve your credit rating or securing a quality mortgage, you can learn more with our team at Crediful. Alternatively, you can take a look at our other comprehensive range of services or get in touch directly and let a member of our team know exactly what you need to help secure a mortgage that is right for you and your family.