If you’re thinking about buying a home, your credit score could be the golden ticket – or the hidden handbrake – on your journey.
So, what is it?
Your credit score is a number between 0 and 1,200 that shows lenders how reliable you are with money. The higher the number, the better your chances of being approved for a home loan (and scoring a better interest rate too!).
🚨 Why It Matters:
When you apply for a home loan, some lenders use your credit score to help decide:
- Whether they’ll approve your loan
- How much they’ll lend you
- What interest rate you’ll be offered
In short? A better score can = more borrowing power and better deals.
📉 What Hurts Your Score:
- Missed or late payments (even phone bills!)
- Maxing out credit cards
- Too many credit applications in a short time
- Defaults or unpaid loans
- Buy Now Pay Later services that aren’t paid on time – oh yes that includes After Pay!
✅ How to Improve It:
- Pay all bills and debts on time
- Lower your credit card limits if you don’t need the full amount
- Avoid applying for multiple loans or cards at once
- Regularly check your credit report for errors
- These ranges are based on Equifax, which is one of the major credit reporting agencies in Australia. Other agencies like Experian and illion use similar ranges but may differ slightly.
Need help getting loan-ready?
At Mynt Financial, we help you understand your credit position and how to boost your chances of approval. Book a quick chat today – your future self will thank you and lets get you on your road to financial freedom – Click here to enquire
