Will credit cards crush your property dream?
- kira3593
- Mar 2
- 2 min read
Our relationship with credit is like any real life relationship: it can be healthy and enjoyable, or risky and regrettable. And the ramifications can be many years in length.
All credit leaves a trail of crumbs
Any debt: car loans, credit cards, even late payments on phone plans and non-negotiables like electricity bills combine to give you a traceable record as a borrower. Lenders and credit reporting companies alike collate this information to form your credit profile.
It's never too late to turn your record around. Most files are relevant for five years, so let’s make the most of the period ahead of us.
Start behaving like a model borrower
Firstly, stop applying for credit. This includes balance transfers. Every time you go online and apply for a new card or a quick loan, it goes on your file. And the message to a lender is not good, it says you’re desperate for cash and no one’s giving it to you. Secondly, put all your monthly, quarterly and annual repayments for loans, credit cards, phone bills, electricity etc in your calendar (with a 48-hour alert) so you never make a late payment again. Thirdly, if you find yourself with some surplus cash, great, put it on your credit card. We’re going to pay that thing off. Oh, and importantly, for at least twelve months before you intend to buy, and need a home loan, it’s advisable to be in the same job.
Know the score… on your credit file
Knowing how lenders view you as a potential borrower can be advantageous in ensuring you’re not surprised by a rejection, and that you’re not slowed down by having to overcome a lender’s objections to your credit profile. Importantly, it gives you a benchmark to improve upon in the lead up to a loan application. The credit score process is quick, easy, and importantly doesn’t record on your file as a credit enquiry.
Want to see your credit file today? You can access this for free here:
Let’s make you credit credible this year.
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