How to improve your credit score
Dilleen Property Group 2022
Your credit score is highly important if you are planning to build a large investment property portfolio.
Firstly, you should understand that the credit score is a metric that measures your creditworthiness and there are various factors that contributes to your credit score. Your previous credit history and repayment history are one of the main contributing factors.
Look after your credit files
This involves paying telephone and electricity bills on time as well as any unsecured debt such as personal loans, credit card payments and car loans.
Myth: You must get a credit card to increase your credit score
Many people may have heard that getting a credit card and paying repayments on time would help to increase your credit score. However, you should not feel pressured into getting a credit card just so that you can increase your credit score. This is because it is an unsecured liability, meaning even if you pay on time, you still have an active unsecured liability under your name. Contrastingly, if you apply for secured assets such as property, you are able to increase your credit score.
Avoid opening several credit cards
Your credit score takes a toll every time you open a new credit card. It is also wise to hold onto old credit accounts as you want your credit history to seem longer. Hence the best strategy is to avoid opening too many credit card accounts to keep your payments manageable and prevent yourself from poor credit.
In conclusion, you should always aim to pay bills and unsecured debt on time and avoid applying for multiple credit cards to ensure your payments are manageable to avoid poor credit. To find out your credit score, you can get a free credit check from our recommended broker Justin Picker.
Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.
