Re: Do late repayments affect credit score that much?
Posted: Tue Oct 01, 2019 8:42 pm
Hello Jess. Welcome to the forums.
Comprehensive credit reporting (CCR) was implemented in Australia from July 2018, under which your credit file/ report also shows your ‘repayment history information’ for the last 24 months. So, if you’ve had any late repayments these get recorded which in turn negatively affects your credit score.
That is only if you’re late by more than 14 days or two weeks, they’re recorded on your file. If repayments are overdue for more than 60 days then they’re listed as defaults.
Too many credit enquiries also negatively affect your credit score. We usually recommend keeping credit enquiries to 2 or less six months prior to applying for a home loan. The good news is credit enquiries do not affect your score for long as they usually do not have a significant enough impact after 12 months.
CCR has both benefits and drawbacks for borrowers.
Our mortgage brokers can access your credit report without leaving a credit enquiry and do a full assessment. We have lenders on our panel who can consider a few adverse credit listings and offer competitive home loans.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify.
Cheers,
Comprehensive credit reporting (CCR) was implemented in Australia from July 2018, under which your credit file/ report also shows your ‘repayment history information’ for the last 24 months. So, if you’ve had any late repayments these get recorded which in turn negatively affects your credit score.
That is only if you’re late by more than 14 days or two weeks, they’re recorded on your file. If repayments are overdue for more than 60 days then they’re listed as defaults.
Too many credit enquiries also negatively affect your credit score. We usually recommend keeping credit enquiries to 2 or less six months prior to applying for a home loan. The good news is credit enquiries do not affect your score for long as they usually do not have a significant enough impact after 12 months.
CCR has both benefits and drawbacks for borrowers.
Our mortgage brokers can access your credit report without leaving a credit enquiry and do a full assessment. We have lenders on our panel who can consider a few adverse credit listings and offer competitive home loans.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify.
Cheers,