How to Improve Your Credit Score Before Applying for a Mortgage
- janet9362
- Jun 30
- 2 min read

If you're planning to buy a home in Bathurst or Lithgow, your credit score could be the difference between loan approval and rejection—or thousands of dollars in extra interest. Whether you’re a first-time buyer or refinancing your current home loan, it pays (literally!) to improve your credit score before applying.
Why Is Your Credit Score So Important for a Mortgage?

Lenders use your credit score to assess how risky you are as a borrower. A higher score usually means:
✅ Lower interest rates
✅ Better loan options
✅ Faster approvals
In a competitive property market like Bathurst and Lithgow, being “credit-ready” gives you a crucial edge.
1. Check Your Credit Report First

The first step to improve your credit score is knowing where you stand. Request a free credit report from major Australian credit bureaus like Equifax, Experian, or illion.
Look for:
Errors or incorrect listings
Old defaults that should have expired
Duplicate accounts
Pro Tip for Locals: A surprising number of Bathurst and Lithgow buyers find incorrect telco or utility defaults. Don’t let a $200 overdue bill from 5 years ago hold you back!
2. Pay Off Outstanding Debts

If you’ve got lingering credit card debt, personal loans, or Buy Now Pay Later accounts, tackle them early. This shows lenders you’re serious and financially stable.
To improve your credit score:
Pay bills on time (every time!)
Prioritise high-interest debt first
Consider consolidating small debts into one manageable payment
3. Avoid Applying for New Credit Before Your Mortgage
Every time you apply for credit—even a store card—it triggers a credit inquiry. Too many inquiries in a short time can lower your score.
Thinking of getting a new car loan, phone plan, or Afterpay account? Put it on hold until your mortgage is approved.
4. Don’t Close Old Accounts (Yet)

It might seem smart to shut down unused credit cards, but they contribute to your credit history length and credit mix—both important factors to improve your credit score.
Just make sure they’re fully paid off and not racking up fees.
5. Speak to a Mortgage Broker Early

The earlier you get professional advice, the better your chances of success. At Sparks Finance, we work with Bathurst and Lithgow locals to assess credit health and create a strategy to boost your score before applying.
We help you:
✔️ Understand your credit report
✔️ Time your application right
✔️ Access lenders with flexible credit policies
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