Category Archives: Credit Report

Want to improve your chances of mortgage approval?

It can be difficult finding a lender prepared to give you a go once you have had some instance of bad credit - especially where your bad credit is still unpaid. We regularly hear from consumers looking for strategies to turn their luck around when it comes to home loan approval. While time is your friend when it comes to fixing a bad credit history, some people are not willing to wait until their bad credit clears up. Here are some potential solutions to getting your bad credit mortgage approval over the line: Repay the bad credit first Even bad credit lenders want to see that you are in a good place financilly at the time of your loan application. Borrowers who can not afford to repay old debts are generally seen as not being able to afford new...

Millions of Aussies drowning in debt

Veda Advantage, one of the largest credit reporting agencies in Australia, has come out with some frightening statistics. Since the introduction of comprehensive credit reporting earlier this year, the agency is attaching a credit score to every Austraian's credit behavor. It seems that the news is very bad for at least 2 million Autralians who have a 50% chance of defaulting on their current credit commitments. That means that as many as 13% of us are significantly over-extended when it comes to debt. A small financial hick-up could be sufficient to tip someone who is already carrying too much debt over the edge. How to read your credit score Credit report format and information collected on it have changed in March of this year. If you have not seen your credit report since then, it is a...

How to improve your credit history faster

Having a bad credit history and a poor credit score can certainly hamper your efforts to find a lender prepared to offer you finance at a competitive rate. Some lenders may simply have one look at your credit score and decline your application. Others may agree to lend but at very high unaffordable interest rates. Since the recent changes to the Australian Credit Law, improving your credit score requires a range of strategies, some old and some new. While a default or a judgement will remain on your credit report for up to 7 years, you can take steps to improve your credit standing and score sooner. Repay all bad credit The sooner you repay your bad credit the sooner will the repair or your credit score commence. It is very difficult to improve a credit score while you...

What is your credit score?

Credit score is a fairly new concept to Ausralians. Many of us are aware that as consumers we have a credit file which maintains details of our credit activity. This is where any evidence of a credit default, a judgement or a bankruptcy would be recorded and would affect your ability to qualify for finance. However we were never used to having a single number - a credit score, sum up our credit worthiness. It used to be that you had to be careful not only about makig loanĀ  payments on time but also about excessive applications for credit as these were able to adversely affect your credit rating despite all payments being in order. Since we have moved to comprehensive credit reporting earlier this year, there appears to be more use and awareness of...

Dealing with bad credit fallout

Bad credit can have significant impact on the opportunities available to you both in the workforce as well as in finance and housing. That is not to say that all is lost if you have some credit history roblems. There are strategies that you could employ to address the impact of bad credit in your day to day life. Qualifying for finance Bad credit will put you outside of the lending criteria of all mainstream lenders. That does not mean that no one will lend you, but it does mean that your loan may be smaller than you expected, for a shorter period of time and most likely more expensive than the prevalent cost of bank finance. With finance applications you may try to gain loan approval by offering the lender the security of an income guarantor or...

You can repair your own credit report

Many of you would be aware that not all bad credit that shows up on your credit report should justifiably be there. There are numerous situations where one can have the information on their credit report ammended either tempotrarily or permanently. Credit repair companies offer to clean up your credit report for a fee. There are different companies out there with differing levels of integrity, offering this service. However in most cases a DIY clean-up can be just as effective and obviously FREE. So how do you start? Get a copy of your credit report To be absolutely clear that you understand what are the bad credit events that may be interferring with your ability to qualify for finance or perhaps even for rental or work, it is wothwhile to obtain a copy of your own credit report. You...

Bad credit mortgages – what you should know!

While it is possible to qualify for a mortgage with bad credit, the availability and viability of such mortgage does depend on the personal circusmtaces of the borrowers, including available income, available/deposit or equity and nature an dstatus of the bad credit. Many borrowers believe that once they have been discharged from a debt agreement or have repaid their bad credit, it is behind them and they should be able to qualify for traditional finance. This is of-course not true. What constitutes bad credit Bad credit does not have to be unpaid bad credit. It can be a discharged bankruptcy or a debt agreement. Bad credit can also mean a borrower who is under a payment arrangement for some debts or a borrower who is consistently paying their loan or credit cards late. If you are a...

Bad credit through identity fraud

Unfortunately bad credit through identity fraud is becoming a very pertinent problem for many Australians. A lost wallet, driver's license, or a missing bag can cost you a lot more than a couple of hundred dollars or the inconvenience on needing to apply for a new driver's license. It goes without saying that it is very important to try and protect your personal possessions from falling into the hands of identity thieves. However should these documents become lost, there are some steps that you can take early on to ensure that things do not get completely out of control. Report your posessions as stolen ASAP As soon as you realise that you have lost a wallet or other personal identification documents make sure that youo repor these as lost to both the police and the authorities/credit providers. You...

Bad credit car finance deal breakers

Of course you can qualify for car finance despite a history of bad credit. There are numerous lenders whose sole focus is the provision of finance to the bad credit market. What is important to understand is that bad credit finance is not a 'free-for-all'. Not all all finance applications will be approved. There are some problems that are too big to solve. Here are examples of what we i finance would call a 'deal breaker' when it comes to qualifying for bad credit car finance: Borrower has insufficient income Bad credit or not, every application for finance must pass the income test - ie. the borrower needs to demonstrate that they can afford the loan repayments. This may mean that despite the borrower thinking that they can afford a new car loan, lender calculations may show otherwise. In...

Will positive credit reporting make it easier to borrow?

Anyone reading the financial pages of newspapers over the past few weeks would have heard about the recent changes to Australian Credit Reporting. Historically and up until three weeks ago Australia had negative credit reporting. What that meant was that the only credit behavior recorded onĀ  our credit reports was that of credit applications and negative credit events such as non payments of loans, bankruptcy, judgements etc. What we changed to is comprehensive credit reporting, an environment where both positive and negative credit events are recorded on our credit reports. How are credit reports used? Credit reports are used primarily by lenders in order to assess applications for finance. If you apply for a personal loan, a credit card or a home loan the lender will seek to access your credit report from one of the credit...