As long as you can get a mortgage, does it really make a difference what your credit rating is?
Absolutely. Your credit rating is your “letter of reference” to lenders. It tells them what kind of a risk you are as a borrower, how much they can confidently lend you, and on what terms. A great credit rating, then, is your ticket to wealth-building. You’ll get the best access to financing, at the best possible terms.
Develop good credit habits, and you can watch your credit score improve in only a few months. First off, you need to pay your bills on time..all the time. Credit cards are a good way to build your credit rating – if you use them regularly, and pay them off each month. If your credit card balance goes aove 30% of your available credit, that debt will quickly work against you. Another easy tip often overlooked is to always keep your oldest credit card. That long credit history is an asset that isn’t easy to replace. Also skip the store card! They are tempting offers to “save on today’s purchase” but resist the temptation. Those credit applications trigger an inquiry on your credit rating – and can drive down your credit score. Store cards are rarely a good credit decision.
Want more advice on building a great credit score? Give us a call!