How important is your credit file?
Have you ever seen your credit file? According to credit reporting agency illion (formerly Dun & Bradstreet), 9 out of 10 Australians haven’t! Another 6 out of 10 haven’t even heard of credit reporting, the Australian Retail Credit Association (ARCA) recently found.
Why is it so important?
Well, a credit file is a piece of paper that can determine whether you get approved or declined for a loan.
Do we have your attention now?
What does your credit file contain?
Your credit file contains personal information such as your full name, date of birth, address, and your last known employer. It also contains your repayment history for every debt you’ve had from the last two years as well as any history of bankruptcy, court judgments or court writs. Add to that your credit enquiries (any loans you have applied for) and anyone who sees your credit file knows almost EVERYTHING about you.
This information is usually accessed by your lender when they are assessing your loan application. If they don’t like what they see then you could get declined.
It can also act in your favour
If you’ve been making payments on time and have no defaults or black marks on your credit file then it can act in your favour.
If you do have a black mark on your credit file then our expert brokers can find lenders who specialise in helping borrowers with bad credit. This is mainly for people who have fallen on hard times in the past but are now managing their finances better.
As you can see, the information on your credit file plays a big role in your home loan application. If you haven’t already seen your file then ask your broker for a copy and they can advise you on how to go about improving it.
Get the specialists on your side
Our mortgage brokers are experts in getting tough loans approved and we know which lenders can help you if you have bad credit. Call us on 1300 889 743 or send us a FREE online enquiry today.