How does a home loan affect my credit score?

When you apply for a home loan, your credit score is one of the factors that lenders will consider when assessing your application. Your credit score is a reflection of your creditworthiness, and it is used to determine your eligibility for a loan. A home loan can have a positive or negative effect on your credit score. If you make your payments on time, your credit score will improve. On the other hand, if you miss payments or default on your loan, your credit score will suffer. It is important to remember that your credit score is only one factor that lenders will consider when assessing your home loan application. Other factors such as your income, assets, and employment history will also be taken into account. If you are considering taking out a home loan, it is important to make sure that you are in a strong financial position to make the repayments. This will help you to ensure that your credit score remains healthy. If you are looking for a home loan, you can check out Goodrate on https://goodrate.com.au/home-loan to see current interest rate offers.