Do you need a good credit score to buy aflat? Not really.

However if your score is bad, it will be much harder for you.

Doyou know what credit score means? Your credit score is an evaluation of howprobable it is that you repay your debt with principal and interests as arrangedin the lending contract.

Historically, the credit score was invented to evaluatethe willingness to repay instead of fleeing away.

Nowadays, the risk that youjust take the money and run is neglectable.

The score evaluates your ability torepay.

If you lend money to a friend, you believe he will pay back because youknow him well and you trust him.

The banks don't know you personally so theylook for alternative ways to be able to trust you.

Usually this is possiblethanks to two mechanisms.

One is the charge on the land and the other one isbased on your credit score.

To evaluate your credit score, some data about youand your behavior are collected and compared to the data of other borrowers.

Thanks to this score, your bank evaluatesthe risk that you can't repay your debt.

This may impact whether or not youreceive a mortgage.

It may also impact the interest rate you will have to pay.

To increase your chances to get the mortgage and to lower the interest rate,you can try to influence your credit score.

This technique works on the longrun, so prepare it in advance.

Keep an eye onyour score and monitor its evolution.

If it goes up or remains stable, you aredoing well.

If it goes down, do something to improve it.

Check that everyinformation is correct and track the origin of each entry.

If you have a longtracking history, your score should be better.

You don't need a credit for that.

Sometimes it is enough to have a checking account.

Behave like atrustworthy person.

Do not open many bank accounts and donot change your address too often.

This could be interpreted as an attempt toescape from a creditor.

Do you want to buy a flat in Munich? Igive you knowledge about ownership in the city.

A proven successful preparationfor your own flat.

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