Home loans customers 'should keep credit file clean'

Individuals applying for a home loan should take steps to ensure they keep their credit file as clean as possible, an expert has stated.

Simon Orbell, Smartmove professional mortgage adviser, told the Daily Telegraph that it may be worthwhile obtaining a copy of a credit report to find any areas that need addressing.

He said taking simple steps such as making payments promptly could help encourage lenders to approve applications.

"Ensure all bills are paid on time and set up direct debits for bill payments wherever possible to automate this process to keep your credit file as clean and tidy as possible," he stated.

To ensure that no bills get misplaced accidentally leading to a stain on a credit record, Mr Orbell reminded Aussies applying for home loans to notify any creditors of any changes to their address.

According to the Genworth International Mortgage Trends Report 2011, the average age of a first home buyer in Australia is 31.

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