How do I calculate my credit score?

Any general questions you might have in regards to loans and finance.
BruceL
Posts: 3
Joined: Thu Feb 21, 2019 11:39 am

How do I calculate my credit score?

Postby BruceL » Thu Feb 21, 2019 11:40 am

I have a simple question. How do I calculate my credit score?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How do I calculate my credit score?

Postby Otto Dargan » Thu Feb 21, 2019 1:09 pm

Hello, Bruce. Welcome to the forums.

You can use our freecredit score calculator to calculate your credit score. It is an excellent guide to understand your strong points as a borrower and identify any potential issues.

Our credit score calculator uses a similar method to that used by banks and Lenders Mortgage Insurers to assess loan applications.

There’s also a credit score that’s kept on your credit file by credit rating agencies such as Equifax (formerly Veda). It details all of your credit information such as the history of all home loans you’ve applied for, any defaults on loans or unsecured credit facilities, bankruptcy, and other adverse events.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

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

BruceL
Posts: 3
Joined: Thu Feb 21, 2019 11:39 am

Re: How do I calculate my credit score?

Postby BruceL » Thu Feb 21, 2019 4:05 pm

When I used your credit score calculator it gave me a score of 54 out of 100 and classified me as moderate risk. What do I need to do next to get approved for a home loan? What will the lenders potentially take issue with?

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Otto Dargan
Mortgage Specialist
Posts: 7243
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How do I calculate my credit score?

Postby Otto Dargan » Thu Feb 21, 2019 5:03 pm

Hi Bruce,

Lenders will perceive the following as credit issues:
  • Having very few assets in your name is often perceived negatively by lenders depending on your age.
  • Having too many opened debt facilities.
  • Having too few opened debt and credit facilities can also be an issue because you don't have a track record of making regular payments.
  • Borrowing over 80% of the property value.

There are certain things that can work in your favour:
  • Buying a home loan to live in is considered to be the lowest risk loan purpose.
  • By saving a deposit you have proven that you are good at managing your money.
Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

BruceL
Posts: 3
Joined: Thu Feb 21, 2019 11:39 am

Re: How do I calculate my credit score?

Postby BruceL » Thu Feb 21, 2019 6:16 pm

Thanks for replying so promptly. One final question regarding credit enquiries, how many is too many? Why can’t I shop around?

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Otto Dargan
Mortgage Specialist
Posts: 7243
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How do I calculate my credit score?

Postby Otto Dargan » Fri Feb 22, 2019 2:35 pm

Hi Bruce,

When applying for home loans, more than two credit enquiries in six months on your credit file is enough to make you fail the credit score of several banks.

You should endeavour to only apply with lenders you actually want to get a loan with.

Don’t submit multiple applications with different lenders in the hopes of getting an approval.

Not many people know this but there are some lenders who don't credit score at all, which means your application is assessed by a real person, not an automated system.

Speak to one of our experienced mortgage brokers who can assess your situation and pair you with the right lender by calling us on 1300 889 743 or fill in our free assessment form.

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


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