- Pay your bills on time.
- Limit what you borrow to what you can afford and need.
- Loans need to be repaid on time and quickly.
- Review your credit report at least once a year.
Your credit rating is a reflection of the amount of money you have borrowed from various creditors as well as your repayment history. Having a good well-established credit rating, or at least fair one, is essential to securing a mortgage loan. Your credit rating score is kept by the credit bureau and reflects loans, payments, etc., that you have made during the past seven years. Both positive and negative information is recorded on your credit report, so if you want to qualify for a loan you need to be sure to build a good credit history. There are a few simple rules you need to follow if you want to protect your credit rating: