How to Boost Your Borrowing Capacity

If you’re in the market for a property, it’s vital that you maximise your borrowing capacity in the eyes of a lender. Fortunately, there are some quick and easy ways you can do that:


Remove any unused credit cards. Lenders assess your overall credit card limit as if it is maxed out. If you’re not likely to need a large limit, either get rid of the card or speak to the provider and reduce the limit.


Cut back on regular expenses. Your ability to borrow is based on your income and expenses. If you have regular expenses that you can trim or reduce, like memberships and subscriptions, get rid of them and reduce your ongoing expenses where possible.


Check your credit score. It’s free to get a copy of your credit report. Check to make sure you don’t have any black marks against your name that shouldn’t be there.


Pay your bills early. Lenders want to know that you’re going to be able to pay back a loan. If you can’t manage things like utility bills, it doesn’t look good. Late payments also weigh on your credit score. However, if you start paying them early, this can boost your credit score.


Consolidate Debts. If you have a number of high-interest debts, it might be worth looking at rolling them into something like a personal loan. This can help reduce your monthly expenses and lift your borrowing capacity.