What Credit Score Is Needed To Buy A House?

For most of us, purchasing a house is a major financial situation that calls for borrowing money. For this, a loan is needed and as we know, all banks and lenders rely on credit score for approval of loans. Yes, those three tiny digits can mean the difference between the yes and no; in other words, can decide whether you are moving to your dream home or not.

Now there will be many questions striking your mind, such as:

• Do I have a good credit score?
• What is the credit score needed to buy a home?
• What is minimum credit score to buy a house?
• Is there any direct relation between credit score & interest rate?

If these and more such questions are coming in your mind then this blog will provide answer to all your queries.

The Basics of Credit Score

You credit card is not only needed for getting a mortgage rather it clearly states your financial picture. The credit number signifies the creditworthiness of a person, higher the score, higher is credit worthiness. Therefore, in simple words, a person with a higher score is almost guaranteed to pay his/her debts whereas a person with low score is more likely to miss payments.

Payment History, Amounts Owed, Length of credit history, New Credit, Types of credit used, all these factors play a major role in calculating the score of your credit card.

Now, the next important question is what credit score is needed to buy a house

There is no hard & fast rule for this. However, a credit score of 600 or above in Australia is considered good. So, if your credit score is 600 or above then there are positive chances of loan approval. If your credit score is lower than there are less chances of qualifying the loan but in this case lenders consider other criteria such as solid assets if any, source of income that makes up for the low credit score. So, before applying for your home loan get a credit check Australia for your score.

For anything you need pertaining to loans in Australia, the finance brokers at Loans Direct can assist you in finding the best option.