How to Get a Mortgage With a Bad Credit Score

A higher credit score ensures you get low-interest rates and much more favourable terms from traditional lenders. You will also end up paying lower monthly mortgage repayments. If you have recently checked your credit report and your score is too low to qualify for a mortgage from traditional lenders, you may want to repair it before applying for a mortgage. Below are a few tips for improving your credit score:

• 1. Pay off your bills on time: Avoid missing out on your monthly repayments on any of
  your bills. If you cannot pay the full amount, try to pay the minimum amount, as
  completely ignoring it will cause it to go into delinquency, and it will impact your
  credit score even further. You can get in touch with your lender about a prepayment
  plan.
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• 2. Stay under the limit: Do not use more than 30% of your available credit limit on
  your cards or line of limit. This will prove to the lender that you are a responsible
  lender.
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• 3. Avoid applying for new credit: Avoid applying for new credit cards, as it is a red
  flag for credit reporting agencies.
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• 4. Maintain your oldest account: The length of your credit history matters. By cancelling your old credit cards, it shortens your credit history. Even if you do not use your old credit card, just maintain it to increase the length of your credit history.