A personal credit rating is a reference indicator that most banks use when processing and approving loan and mortgage applications. The main function of a credit rating is to check the customer’s credit activities and repayment records. The report will record the applicant’s credit activities, including the loan amount, credit limit, repayment record, any unpaid debts, and legal actions related to debt collection.

Poor credit records will definitely affect property buyers’ applications for mortgages with banks. Banks place great emphasis on property buyers’ credit records and their repayment ability.

 At the same time, financial status reflected by credit ratings is also one of the indicators before banks make final approvals. Therefore, it is important for potential homebuyers to pay off their credit card bills on time, manage well their finances, and maintain good credit records.