Prospective home buyers are advised to make sure they keep a clean credit record by ensuring that all of their accounts have been paid to date before applying for a home loan.
Most retail stores and banks’ default listings, will remain on a consumer’s credit profile for two years. If you do choose to close an account, settle the account balance and then contact the relevant credit provider to check that your name and record has been cleared. If you have a judgment on record, clear the account and then contact a litigation attorney to have the judgment rescinded.
To keep a healthy credit score, consumers should follow the following guidelines:
- Ensure that you meet your monthly debt repayments on time. Even a payment that it only 24 hours late can be bad for your rating.
- If you fall behind on repayments, get back on track as soon as you can.
- Always pay the minimum instalmentrequired.
- Close accounts you don’t use. Credit providers assess the full facility of the credit agreements on record, even if they’re not being used.
- Draw up a budget - and stick to it.
- Boost your buying power and reduce your debt. If possible, pay more than the minimum payment on your accounts to further improve your credit standing.
- If you can’t make a payment, talk to the relevant creditor about making an alternative payment plan.
- Don’t ignore a letter of demand. Always be proactive and take appropriate action.
1 comments:
This is such a great post to share with. I find it very informative. Thanks for sharing those useful tips.
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Pia
condo in Philippines
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