Does credit card help your credit score?
Have you heard that getting a credit card can help your credit score? Before you do anything, read this article.
When you want to apply for a mortgage, your credit worthiness is looked at by the lender. They score you and search through your credit history to see if you are a good candidate to lend to.
If you have never had any financial liabilities, your credit history may seem a little flat…. Indeed, one way to build up your credit history may be by sensibly using a credit card. There is a special, score building credit card type, and by using it and regularly repaying it, you build your credit worthiness.
Be careful though, as using up too much of your card’s balance may cost you interest as well as it may affect how much the lender would offer you when taking a mortgage. Also, remember to pay it on time each month – it is very important.
Before you decide to get a new credit card, always first speak to a broker!
Opening any new line of credit may lower your existing credit score and it may lower the amount you will be able to get from the lender! This is surely not the outcome you want!
A broker will look at your credit score and your credit report and will be able to tell you if you need to work on it or if it is good enough for mortgage purposes.
If you have any questions, feel free to contact us.