Rebecca is a young professional who has had a number of credit accounts for a few years. She is looking for ways to improve her creditworthiness because she wants to buy her first home.
She need implement some changes into her financial behaviour, so that her credit score reflects this. Her credit report should detail how she pays on time and in full. It should also show that she doesn’t have too much debt to her name. For a favourable rating, she should find ways of bettering her score.
Paying everything back on time
By paying all of her creditors back on time, she puts herself in a much better position. This is an easy way to improve your creditworthiness. She should make an effort of avoiding spending so much that she exceeds her credit limits.
Pay in excess of the required monthly balance
Rebecca should make concerted efforts to pay more than what is required.
Avoid applying for loans simultaneously
Even though she is looking for ways to improve, she should be wary of applying for too many loans at the same time.
Rid yourself of accounts no longer needed
Having fewer well-maintained accounts is better than multiple ones which you don’t need. By closing accounts she doesn’t need, technically, she’ll have less debt to her name.
Review credit scores
Credit bureaus do make mistakes too, so Rebecca should check her credit score regularly for accuracy. Eliminating any errors means that you can maximise on it.
Keep in mind that there are ways to improve your creditworthiness. With a clear and effective plan, this is something that can be achieved quickly too. Rebecca can do this and qualify for the home loan, making it easier for her to get the home of her dreams.