Looking to buy your first home? Discover the importance of a good credit rating, its impact on mortgage eligibility and interest rates. Learn how to build a high credit score without a credit card,
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“I’m currently 30 and looking to buy my first home, within the next 6-12 months. I have no debt and don’t own a credit card. Do I really need one prior to buying a home to get a good ‘credit rating’?“
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When you’re looking to buy your first home, having a good credit rating can be important because it can affect your ability to qualify for a mortgage and the interest rate you’ll be offered. While having a credit card may help you build a good credit score, getting a credit card to build a high rating is not required.
There are other ways to build your credit score, such as paying your bills on time, having a stable income, and keeping your debt low.
It’s great that you currently have no debt. Consistently paying your bills on or before their due dates is one of the most critical factors in determining your credit score. Late payments can significantly and negatively impact your credit rating.
Before buying a house, it’s always advisable to consult a mortgage advisor. They can provide guidance and assistance on how to build a high credit rating.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The information in this post is only general in nature and is not personalised financial advice. Please contact us if you want financial advice.
