The Oxford Dictionary’s definition of ‘creditworthy’ is: "(Of a person or company) considered suitable to receive credit, especially because of being reliable in paying money back in the past."

The Collins Dictionary adds ‘earning power’ to the mix.

 In other words, a creditworthy person is someone who’s paid off their debts in the past, and has enough income (or funds) to stay afloat if things don’t quite go to plan.

So what do lenders look at to ascertain your “creditworthiness”?

• Your credit file, including history of credit applications and interactions

• Your income

• Your savings

• Your assets

• Your debts

So what can you do to improve your “creditworthiness”?

Here are some tips from our Finance Partner:

• Check  out your credit file to see where you stand

• Ensure your credit file is fair and accurate

• Create a consistent relationship with your bank

• Don’t apply for too many credit cards

• Pay your credit card and loans on time

• Demonstrate general bill-paying reliability

• Use a variety of credit types to raise your credit score ie mortgage, credit card etc

• Keep rarely used cards, it will impact your overall score favourably if you have no negative reports

• Don’t change houses and jobs frequently

Are you looking for a new personal or investment loan? 

Contact propertyloans@realrenta.com and we will arrange for our Financial Partner to contact you for a discussion.