Those who gamble or lie about their finances risk ruining their credit rating

Others hurt their credit rating by failing to repay debts regularly, taking on too much credit, or not registering to vote. Your credit report is a history of all the credits you have taken in the past six years, including overdrafts, mortgages, credit cards, cell phone contracts, and HP payments. The data is held by credit reference agencies and lenders check this before deciding whether to grant you a mortgage, loan, or credit card, and how much to charge.

Lenders want to see applicants spend wisely and can get nervous if repeated gambling transactions appear on your records, said Michael Barlow, head of search engine optimization at auto finance provider Zuto. “Insurers will look for signs of financial distress related to gambling activities to make sure you pay off your loan. ”

Other risk indicators include unplanned overdraft, missed withdrawals, debt collections, payday loans, and high overall borrowing levels.

“If you have more than one of these factors, it can affect your chances of being approved,” Barlow said.

Buyers who apply for Buy Now Pay Later (BNPL) credit like Klarna, or store cards and installment plans, are taking risks by inflating their income for a higher credit limit.

First-time buyers are particularly vulnerable, with one in three admitting they lie about their income, according to research by First Mortgage brokers.

Chief Compliance Officer David McGrail said that in addition to breaking the law, it could jeopardize your chances of getting a mortgage: “You could end up with a higher credit limit, which would make it easier to get a mortgage. bad debt and you would be denied credit later. ”

Eight in 10 people don’t realize that using BNPL products can affect your credit score, especially if you don’t pay on time. “If a lender finds that you’ve frequently missed payments, it will affect their judgment as to whether you should be approved for a mortgage, especially high loan-to-value deals that first-time buyers often rely on,” said McGrail.

To boost your credit rating, make sure you are registered to vote on the electoral roll.

Pay all bills on time to show lenders you can manage your finances.

Avoid high levels of debt as this will suggest that you have money problems and make lenders wary. Check your report with the three major credit reference agencies, Equifax, Experian, and TransUnion, and correct any errors.

Borrow well below your credit limit on existing cards. If you have access to credit but not using it, it suggests that you are managing your money well.

Beware of social media. Underwriters can even check posts on Facebook and other sites for evidence of overspending or reckless living.

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