Over use it and you will lose it!

I recently had a client refer their son to me who wanted to purchase his first home.

The application was looking good until a credit check was done, his credit score was low, when I discussed his credit history he had no idea what I was taking about!

Your credit rating is reflected in a “credit score” which is a number between 1 and 1000. Your credit score is an indication of how financially healthy, responsible and reliable you are. There are many variables used to determine what your credit score is, such as your repayment history, the amount of money you owe, the length of your credit history, the amount you are looking to borrow and the number and frequency of credit inquiries. An entry is recorded every time you apply for credit even if you didn’t end up borrowing money. If the number drops below 450 it’s not viewed favourably.

A good credit score is an important asset as apart from banks and finance companies, landlords, utility companies and even employers will check your credit score.

In this case the problem seems to be to many inquiries in a short space of time. The good news is that his credit score will repair itself over time.