What is my Credit Report & Why is it important?
Updated: Feb 22, 2019
Put simply, your credit report is a report that gives a lender a snapshot of your financial life. It will demonstrate whether or not you have been a responsible bill payer and borrower.
Last year, 2018, saw the Comprehensive Credit Reporting (CCR) introduced, and lenders are now required to take this into consideration when assessing a home loan application. It is compulsory for banks to share negative and positive details about your financial behavior with other lenders. So, it is more important than ever to have your Credit Report in good shape.
Things to Know:
· Pay your bills on time every time. Your phone bill, electricity bill, credit card they are all important and if you make late payments will impact negatively on your Credit Report.
· Avoid Same Day Lenders ( known as Payday Lenders). This demonstrates to a potential lender that you cannot manage your money or live within your means.
· Avoid After Pay facilities. These are a credit facility just like a credit card and a potential lender will view these in the same way they would Payday Lenders. If you need a new dress, or TV and you don’t have the money this month, either save for it or Lay buy the item in store.
· Avoid applying for multiple credit cards, loans or other small credit facilities in short time frames. This will also show as a red flag to a potential lender.
· TALK TO ONE OF OUR TEAM. We can go over your credit report with you, help you understand it, and most importantly help you put a strategy into place to improve your report if needed. It is vital to address your Credit Report prior to applying for a loan so as to avoid any surprises.
· Even with a less than glowing Credit Report, you may still have options available if you are looking for a loan. An experienced Mortgage Broker will be vital for this as these lenders are usually not your mainstream “Big 4” Banks.
CONTACT GADSDEN FINANCE and have a chat to get yourself fit for a Loan Application.
(03) 5443 9098