Early in life, credit scores may not seem particularly important. A missed bill here or there is nothing that can't be caught up on, and credit cards can be very handy when you are in a tight spot. However, it is important to stay on top of these from an early age in case you end up with bad credit further down the line, which could affect your ability to take out a home loan or insurance! 

Practice makes perfect

It may seem counter-intuitive to take out a credit card in order to get a better rating, but proving yourself as a reliable user of debt is an excellent way to boost your rating. Keeping your balance low, using under half of your available credit and making regular repayments are great ways to put yourself in good stead with lending agencies later in life. While never going into debt at all is the dream, most people will have to do this at some point in their life – having a healthy credit history lets lenders know their money is making its way into good hands.

Get a checkup

Did you know you're entitled to one free credit report every year? These financial health checks let you see where any payments have been overlooked and can be a 'cheat sheet' for working out what you need to do so you can access insurance or borrow money. It's just like going to the doctor, except much cheaper! 

Be swift, be safe

It can be very tempting to ignore debts when they arise, or put them off until another time. However, if you can pay off debt quickly it may positively impact your credit score, and lets you get on with long-term planning like mortgage preparation much more quickly!

A mortgage broker can always help you put these debts together and tackle them quickly, so you can look at that credit rating with pride.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we'll call you!