How to Improve your credit score as a first time buyer

What can first-time buyers do to improve their credit scores? Read our blog post for first-time buyer guidance and direction from Warrington Mortgage Centre.

Just the two words ‘credit score’ can send shivers down the spine.

What is credit? Do I even have a credit score? Is credit something I should be worried about?

Everyone’s a little bit puzzled by credit, even people who have been aware of it for years, and it’s probably the most popular topic we get asked about on the daily.

So to set you all at ease, and show you how important credit can be when purchasing your first home – we’ve got the answers you’ve been looking for!

There are no stupid questions in this series Tom, don’t you worry about that!

The purpose of credit, is to provide data to lenders, so that they understand how you handle your finances. Your phone bill, your credit cards, your dedicated outgoings – how well you pay all of this off determines your credit score.

If you pay things back on time, your score will improve, but if you’re late, the score will go down. The lower the score you have, the harder it will be to secure a mortgage, so be sure to pay off any credit cards and other outgoings as quickly as possible, otherwise you may find yourself in a sticky situation.

If you’re eager to know your current credit score, get in touch with us ASAP, and we’ll provide you a [FREE] credit check, no obligation required.

If nothing else, it’s the perfect way to know where to start your first-time buyer journey.

Hello Lucie, there is a simple way to improve your credit score, and that’s to get a credit card from your current bank, and start using that for your important purchases.

Fuel, train tickets, holidays, a laptop, even your Netflix account. Put it all on the credit card, and you’ll see your credit score steadily rise with each passing month, so you won’t have to be worried about those results much longer.

The key if you take this route though, is to be responsible.

Anything you put on your credit card must be paid back within the allotted time, otherwise you’ll do yourself more harm than good, and nobody wants that! Keep track of when and where you purchase with your credit card, and even make a note in your phone, that way, you’ll never miss a repayment!

A great question – and not something I’m often asked actually!

Whilst your credit card, dedicated contractual payments and payment history will have an impact on your credit score, there are many things that don’t affect your score, which you might have mistaken.

Using your debit card, your age, your occupation, who you live with, your savings, your income, checking your credit score – none of this has an impact on your personal credit score, so if you were worried about any of these aspects, you can free your mind now.

As always, it’s definitely better to ask beforehand, rather than make a mistake and see your score dramatically alter – best of luck finding your first home Melissa!

Credit scores don’t have to be scary, you just need to be aware of what can have an impact on yours.

Make sure you make repayments in due time, boost your credit using a credit card and be responsible with your outgoings; by following those three simple steps, you’ll have no problem getting a mortgage.

Until next time, feel free to check out the rest of our series here or visit our first-time buyers page to get in touch using our quick contact form. Take care!

Ready to get going? Request a Call Back

Name*
Consent