Asked on 21 Jul 2019
I'm currently thinking about purchasing a property maybe five years down the road and I'm wondering about the importance of a good credit score and how can I go about increasing mine to get a good loan later on. Anyone with prior experience or tips in this area?
Having some credit activity with a good score would definetely help with getting a higher loan quantum but banks seldom vary the interest rate base on a better credit score.
You can start building up your credit score with a credit card by always repaying your credit card bills on time and avoid applying for too many credit cards as their might view you as being credit hungry. NEVER ever overspend beyond your means / default on your credit card bills.
Credit cards when used with prudence can be a very useful tool; You earn points / cashback from your spending too.
More importantly build up your income stream and minimise your debts and liabilities like car loans if you are planning to apply for loans in future.