How does a credit score work?

An excellent credit score is one of the most priceless assets a potential home buyer can have.

This tool has the power to secure favourable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.

How does a credit score work? The higher your score, the better your credit health will be, which will be an advantage when applying for a home loan, making it easier for you to borrow money at lower interest rates. “The lower the score, the higher the risk which then influences the outcome of the credit application” By managing your credit profile effectively, you can ensure your image and profile is viewed favourably by lenders or other organizations. A bad credit score would mean the exact opposite of this, and result in almost no financial institution willing to offer you a home loan.

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