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To improve your credit score, pay all your bills on time and in full.

OWNING a home is an important step and an intelligent economic choice.

A person who just started working might already be thinking of buying a house.

However, he must enhance his credit score if he wants to buy a home in the next few years.

A credit score is the indicator used by lenders to determine a borrower’s risk.

Credit card companies, auto retailers and mortgage bankers are three kinds of lenders who will check your credit score before deciding how much interest they will charge you.

Credit Tip-Off Service (CTOS) is Malaysia’s most commonly used business credit score.A good CTOS score ranges from 897 to 850.

Even though you have a high score, banks and lenders will also look at other factors before giving you a loan or new credit.

If you have poor credit scores, it can lead to higher mortgage rates and increased closing costs, leading to higher monthly payment.

There are several ways to improve your credit score and improve your chances of getting a mortgage at a good interest rate.

For example, pay all your bills on time and in full.

Rod Griffin, Experian’s director of consumer education and awareness, told CNBC’s Make It that ‘there are two keys to every credit score and having a good score: You have to pay your bills on time every single time, and you have to keep balances as low as possible’.

To maintain a good credit score requires a lot of patience.

Keep saving and spend wisely.

NIK FARAH AIDA MOHD FADZLI

Sungai Gadut, Negri Sembilan

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