Credit Score

How do I see which mortgages I can afford?

Start by considering your:

• Monthly income
• Debt obligations
• Down payment size
• Any other monthly expenses

Mortgage affordability calculators can help you estimate this by showing a more clear picture of your borrowing capacity. Furthermore, many lenders also offer pre-approval processes to help clarify your financial standing and what you’re likely to qualify for.

How does the Score Booster work?

Score Booster examines your credit profile, then highlights actions that can improve your score based on your current habits. This could be adjusting payment timing or reducing outstanding balances, for instance. By following these steps, you can gradually increase your credit score and potentially lower your interest rates.

What is the Score Booster?

Our ‘Score Booster’ is a tool designed to help you improve your credit score by outlining ways you can improve financial habits. It analyses your credit report, and then offers suggestions tailored to your profile. These could be anything from reducing outstanding balances to correcting report errors – in turn raising your score and making you more attractive to lenders!

How can I improve my credit score?

Improving your credit score is a time-consuming process, but it’s still achievable if you take the following steps:

• Pay your bills on time
• Reduce credit card balances
• Avoid new debt
• Address any errors on your credit report

Regularly reviewing your credit score is classed as a ‘soft-inquiry’ on your credit report, meaning it doesn’t harm your rating like ‘hard-inquiries’ do. This means regularly checking your score is a great way of knowing where you stand and helps you spot any inaccuracies that could impact your ability to secure a loan.

How do I check my credit score?

You can check your credit score through various online monitoring services, most of which are free. Many credit card companies and financial institutions also provide access to their customers.

Checking your own credit score is known as a ‘soft inquiry’ and won’t have an impact on your credit score. ‘Hard inquiries’, however, are done by loaners when you apply for a loan. Too many hard inquiries in a short time period can lower your credit score, as it suggests you may not be financially stable. Regularly checking your score yourself, however, helps you know where you stand and spot any inaccuracies on your credit report.

What is credit scoring?

It’s a system lenders use to assess your creditworthiness. Your score is calculated based on factors such as the following:

• Credit history
• Payment history
• Debt levels
• Credit mix
• New credit applications
• Credit utilisation

High scores demonstrate that you use credit responsibly, which makes you a more favourable candidate for loans. Low scores, however, may signal higher risk to lenders as it suggests you can’t be trusted with large loans.

What credit score do I need for a mortgage loan?

Different countries have different measurements for credit scores, so the specific rating you’ll need will depend on the country you’re looking to buy property in. In the United States, for instance, most lenders look for a credit score of at least 620 for conventional loans. However, government-backed loans, like FHA, may have lower requirements (often around 580).

High scores generally lead to better interest rates and terms. If your score falls below these benchmarks, make sure you improve it before applying so you can increase your options and save more money.