So even after the worst experience, you may still be able to get a mortgage.
Fixing your credit rating
But how do you actually fix your credit rating so you are eligible for a mortgage? The banks will certainly not negotiate with you if your rating is very low, so the best advice is to just wait and to adopt safe and sound financial practices until then.
Even in just a few months, if you have a good job with a steady income and if you pay your bills on time, you can significantly improve your credit score to the point where you may be eligible for a smaller loan. Provided you have some money saved up for a down payment, you might be able to secure that mortgage in this way.
Improve your credit rating with loan repayments
In your quest to secure a mortgage, another great way to improve your credit rating is to take out small loans that you know you can pay back easily within a few months or even just a few weeks. Many banks now offer a service where you can specify what you want a loan for — such as a car, furniture for your apartment, appliances, computers and so on. Even studies can be financed. By taking out small loans like this and repaying them promptly and on time, you can drastically improve your credit rating to the point that you will be able to get a mortgage after just a year or two of doing this.
Improving your credit rating with bills
If you’re hunting for a mortgage and your credit rating is not very good, then there are other ways that you can improve your rating so that you can get a great mortgage. For instance, by paying your bills promptly and on time, you will improve your rating quickly. Many people like to set up automatic payments on their bills to assure they never miss a payment, but it’s actually better in terms of credit reporting to make the payments yourself and to do them all around the same time every month. Many banks report better scores if you keep a budget, know where the money is going and also show that you are saving significantly and as much as possible every month.
Securing a mortgage, even if you are coming from a terrible financial background is not that hard it just takes a bit of financial management.