First-time buyers: Be mindful of how your address history can harm your credit score.

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First-time buyers: Be mindful of how your address history can harm your credit score.

FIRST-TIME BUYERS and new graduates may be surprised to learn that credit ratings are heavily influenced by address histories.

This tiny fact, according to Matt Coulson, director of Heron Financial, the UK’s largest independent mortgage and insurance adviser, could prove damaging in the future when applying for mortgages and should not be neglected. “It’s crucial to keep your address history up to date as a student who moves about every year, living in different places,” he said.

“This entails updating your information with your bank, credit card companies, the electoral list, and any utility bills you may owe every time you move.

“It’s a big deal for lenders since it’s what they use to track your history.

“It’s amazing how many first-time purchasers who were just students when they came to us for assistance had no idea that their address history was even relevant.

“You don’t want all of the good work you did with a credit card to raise your profile to be undone because of one minor detail.”

Students might apply for a student credit card when planning for the future and eventually applying for a mortgage.

A student credit card can help you pay for unforeseen expenses while also helping you build a positive credit history.

“You can use it for daily spending, so to hop on the bus, the tube, or the train,” Mr Coulson remarked when explaining the significance of student credit cards.

“Or just go out and buy a gallon of gas every now and again. The most important thing is to ensure that it is obvious.

“I use it about once a month for small things. It is not solely about making large purchases and then sitting on them.

“Make a payment that is greater than the minimum required amount when paying off these goods every month.

“This is excellent for your credit profile and will assist you in the future when purchasing real estate because it demonstrates to lenders that you are responsible.”

It’s critical to be aware of the minor factors that can have an impact on your credit report when striving to improve it.

Having a general understanding of your credit profile from the age of 18 will assist ensure that there are no shocks when it comes to mortgages.

“If you can start early by building credit, that’s fantastic,” Mr Coulson added.

“Get a credit card from your current bank.”Brinkwire Summary News.”

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