Ways to increase your credit standing

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Creditworthiness is something you can work on and make sure you can get a mortgage on better terms than you think.

Creditworthiness is a message for the bank that you are a reliable partner who will meet his obligations. There are proven ways to build good credit standing.

Before granting financing for the purchase of real estate, the bank primarily examines creditworthiness and does it extremely carefully. In this way, it checks whether the borrower’s income allows to pay its current liabilities after increasing the mortgage amount. In its credit policy it is guided by its own criteria, but one thing is certain: your options will be verified on all possible sides. If you have too little creditworthiness, you can use the knowledge of experts and make the bank see you in a better light. Here’s what you can do to improve your credit standing and get a loan for the amount you need.

Close or reduce account and credit card limits

Close or reduce account and credit card limits

Your account and credit card limits reduce your creditworthiness. It does not matter that you do not use them, because the bank believes that you can at any time, and then your liabilities will increase. Getting rid of them a few months before taking a mortgage is a good solution, so you should think about it, especially if you don’t need it.

Pay off those loans that you can

Giving the banks everything theirs would be something. Not everyone, however, has such a comfortable situation. However, you can try to pay back at least some of your liabilities and thus increase your credit standing.

Choose the bank that best calculates your income

Each bank – whether you like it or not – independently decides to whom and what mortgage to grant. Some of them approach the topic more restrictively, others are less protective. An independent financial expert will help you identify the right one that best suits your needs.

Every income counts …


… but the illegal one falls away, so it’s worth having a documented source of income. However, maybe after work you earn some extra money, do you have additional business or rent a flat after your grandmother? This money can significantly increase your credit standing. So remember to mention this to your financial consultant.

Choose a bank that will understand that you are in an informal relationship

If you live in a relationship that is not legally sanctioned, it doesn’t limit you in your mortgage plans. Together with a financial expert, you will undoubtedly find a bank that gives you the option of taking out such a loan to unmarried couples.

Pay taxes, especially when running a business

Simply put, don’t generate artificial costs, because the bank will unfortunately underestimate your creative accounting and will only take into account your income, not your income.

Ask for help from a loved one

If your creditworthiness is insufficient, you can always ask a loved one to vouch for you. Together, you will probably meet the requirements of banks in the context of a mortgage.

Take overtime

Take overtime

If right now you can’t change your job to a better-paid job, maybe the solution is to take overtime. Any additional income matters because the bank calculates your ability by averaging your earnings over the past few months. It is also worth having more funds in connection with the furnishing of the apartment that awaits you.

Cancel the child discount

It is worth considering continuing to use the child allowance if the child is already studying and working at the same time. An annotation about the relief in the annual tax return will cause the bank to reduce its creditworthiness even when your child is alone.

Ask for a raise

The moment when you take a mortgage is also a good time to talk to your supervisor about the increase. Remember to take care of this topic a few months before assessing your creditworthiness.