credit inquiries

Any general questions you might have in regards to loans and finance.
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househunter
Posts: 3
Joined: Mon May 31, 2010 9:38 pm

credit inquiries

Post by househunter »

Hi,

My partner and I want to apply for a construction loan. We both have good incomes and clear credit reports. The only problem I think we might have is that I have 18 credit inquiries on my credit report which relate to credit i applied for and did not end up taking up (did not realise it would affect my credit rating). All these applications were a few years ago, I have only had two inquiries in the last two years. Do you think this will affect our chances?

Thanks

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Otto Dargan
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Re: credit inquiries

Post by Otto Dargan »

Yes this will have an effect on your loan application because a high number of credit enquiries will give you a bad credit score. We have some lenders that do not credit score or who have the ability to override their credit score if you can prove that you did not take up these applications.

With one of our lenders we can provide 6 months bank statements for ALL bank accounts you have which will show every debt that you have. This will then prove that you do not have these debts and they can override their credit scoring system. However many lenders will decline your loan outright, we really need to see your full details to carefully choose which lender we apply with.

Please call one of our mortgage brokers on 1300 889 743 and they can assist you further.

Thanks
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

househunter
Posts: 3
Joined: Mon May 31, 2010 9:38 pm

Re: credit inquiries

Post by househunter »

Thanks very much for your reply. Just wondering in these instances whether having a guarantor would assist?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: credit inquiries

Post by Otto Dargan »

It would depend on the lender again. Some lenders are more conservative as they do not want to put the guarantor at risk if the borrower has potential issues. Other lenders believe that because LMI is no longer required they can relax their lending policy.

Your situation is really a case by case basis.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

househunter
Posts: 3
Joined: Mon May 31, 2010 9:38 pm

Re: credit inquiries

Post by househunter »

Thanks I will give you guys a call. Just one more question though, does it make a difference if some of the previous enquiries relate to home loans - i.e. the same inquiry I would be currently making with the lender? Obviously I haven't gone ahead with any other home loans - would the lender view this in a negative light just because I had looked into a home loan with a few different banks before making a decision?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: credit inquiries

Post by Otto Dargan »

Yes even though those recent enquiries were for the same loan that you are still looking for now this will count against you. Credit scoring systems are not fair at all!

There is a reason behind this however. From a lenders point of view they don't know if you applied with those lenders and then looked elsewhere or if you were declined by those lenders. If those other lenders declined you then why did they decline your loan? What is it that they know that the current lender doesn't? That is what it looks like to a lender.

We both know this is not the case and for this reason we prefer to provide additional info to ensure that the lender can see that your loan is a good application.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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