When you have decided to refinance or remortgage your home you would naturally start searching for a remortgage quote. But before anything else, you have to know that the lowest remortgage rates would be your goal. And the only way to get that is by having excellent credit. That really is the secret to obtaining the best remortgage rate. And if you donâ€™t have excellent credit, itâ€™s not going to happen. What you need first is a credit fix. Discussed below is how to do it.
Achieving an Excellent Credit Score
Your first priority will be paying all your bills â€“ on time! By doing this, there is only one direction your credit score will go â€“ up. This is very important; the Number 1 Rule. Now, if you happen to have below average credit, of course you first need to pay all your debts then everything else after that should never be missed and be paid â€“ on time!
Keeping Your Revolving Balances Below 7%
Try not to use beyond 7% of your credit limit. It is said that the magic number is 30%, but the truth is there is no magic number; maybe because it is just considered the acceptable percentage. But if you check your credit report, somewhere in there you will see the line that reads â€œFICO high achievers keep their balances below 7 percent.â€ Isnâ€™t that your goal – to have an excellent credit? Then forget 30% and stick to only 7% of your credit limit.
Non-Mortgage and Non-Revolving Balances Should Be Below $1000
This is recommended on FICO reports.
Variety of Credit Lines is Better
It is better to have a credit card, installment auto loan, and a mortgage instead of having 3 credit cards.
As the saying goes, â€œAll good things come to those who wait.â€ Have the patience to stick to these rules for a few years and you will surely reap the rewards.
Once you get an excellent credit, your next step would be the kind of remortgage you will get. You may start thinking of self employed remortgage or buy to let remortgage. There are a lot to think about, so you will have to do a bit of research to aid you with your decision. But know at least this – a fixed rate remortgage is considered better because the rate doesnâ€™t change as opposed to adjustable-rate mortgages that have changing rates. Finding a financial planner will also be a good idea to help you find good remortgage loans quickly. But if your house is on the line and you canâ€™t wait years to fix your credit and remortgage you house then you will want to read on how to stop foreclosure now.