Knowing your credit status and working towards a good credit status is important. It can improve your chances of being approved for a home loan rather than being sent away from the bank disappointed.
A good credit profile is when your credit history has been maintained in good standing for a certain length of time (the specific period varies from institution to institution) by adhering to monthly payments on time.
If you don’t already have a credit history, meaning you don’t have any debts or credits on your record, then it is advisable to open an account or apply for a credit card.
By using the credit available and paying it back diligently you can start building a reputable credit score.
Tips for a better credit score: Credit providers assess all recorded debt so close all unused accounts where possible.
The more access to credit you have on record, the lower the credit score will be.