Get your credit rating up, to get that mortgage!

A good credit rating/score is an essential part of getting a mortgage loan.  The only way to establish good credit is to actually start buying on credit. This is the only way to establish a credit history which reveals your ability to pay for things that you buy or use.  If you have never taken a loan before or have not taken anything on credit before, now may be the time to do so if you intend to get a mortgage loan sometime in the future.


Stay put to help your credit rating and make it easier to get a mortgage.


Changing jobs often will make you seem unstable and risky. Employment continuity is paramount. Ideally, lenders are looking for someone who has had the same job for a number of years.  Having had two employers in 3 years need not be that detrimental. If the job change is to get more pay, it will usually not cause any problems, though you really want to have been in your new job for a few months before applying for new credit.  Remember, lenders often ask to see the last couple of months pay slips when applying for a loan.


Being a consistent saver helps your credit rating and makes it easier to get a mortgage.


Lenders see bank accounts as signs of financial stability and consistent savings behavior. You shouldn’t, however, just open accounts left and right, as this makes you look bad rather than good. Just have more than one and make sure that there’s money in each of them.


Handling a credit card responsibly helps your credit rating and makes it easier to get a mortgage.


Choose a card that offers the lowest interest rate and if possible one that offers a cash back percentage on purchases you make. Paying your credit card automatically helps your credit rating and makes it easier to get a mortgage.  Set up automatic payments with your credit card company and/or bank. Most credit cards will allow you to set up automatic withdrawals from your checking account every month to pay for your credit card. This way, you won’t risk forgetting about your payments and registering as a late payer, dropping your credit score.