What are the types of "bad credit" that I may have?

Any general questions you might have in regards to loans and finance.
afish
Posts: 63
Joined: Mon Jun 15, 2009 4:46 pm

What are the types of "bad credit" that I may have?

Postby afish » Wed Sep 24, 2014 7:05 am

Hi,

I’ve been considering taking out a mortgage to help me with the purchase of a small unit in Glendale. This is the first time I’m getting a mortgage so I don’t know much about the things that are involved in this. I’ve heard that I may not be able to take out a loan with a major bank like ANZ or CBA if I have “bad credit.” I’m not sure what this means. Can anyone help me understand this?

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Otto Dargan
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Re: What are the types of "bad credit" that I may have?

Postby Otto Dargan » Wed Sep 24, 2014 10:10 am

Hello afish and welcome to the forums.

If you currently have or have recently had any of the following types of bad credit then it may be difficult for you to take out a home loan with a major lender:
  • Unpaid bills or tax - If you have any outstanding bills such as council rates or late tax bills then they may not initially show up on your credit file. However, they may be visible on the supporting documents that you may need to provide.
  • Company in financial trouble - If you are the director of a company that is in financial trouble, receivership, or liquidation then this may affect your personal credit history. As a result, you may have difficulty taking out a mortgage with a major lender.
  • Bad credit history - This includes adverse listings like defaults, bankruptcy, judgments, court writs, or too many credit enquiries on your Veda Advantage credit file. This may make your loan application doubtful.
  • Lender credit history - This is your past credit history with the lender that you are applying for. Generally, lenders tend to have a very long term memory for the customers that they have had problems with in the past.
  • Mortgage arrears - If you have missed any payments on your loan in the last six months then the lenders may be wary of lending. However, you may not have any problems with this because this is the first time you are getting a mortgage.
  • Over committed - If you have too many debts for your income or your total assets are less than your total liabilities then the major lenders may assess you as being insolvent or beyond help.
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

afish
Posts: 63
Joined: Mon Jun 15, 2009 4:46 pm

Re: What are the types of "bad credit" that I may have?

Postby afish » Wed Sep 24, 2014 5:28 pm

I’m pretty sure that currently, I don’t have any of the types of bad credit that you’ve listed out. But I don’t remember if I have had any bad credit in the past. I think I can only be certain after I have a look at my credit file. Hey Otto, how will I be able to get a hold of my credit file?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: What are the types of "bad credit" that I may have?

Postby Otto Dargan » Thu Sep 25, 2014 9:29 am

Hi afish,

If you want to get a copy of your credit file then you have several methods available to apply for one. The method that you use may purely depend upon how urgently you need a copy.

You may choose one of the following methods to get a copy of your credit file:
  • Write to Veda Advantage - If you write and request a copy of your file to them then you will get a free copy within 14 days.
  • Apply on Veda’s website - If you apply on Veda’s website then you will get the copy right away. However, you will have to pay a small fee.
  • Ask your broker - If you have a good mortgage broker then you may simply ask them to email you a copy of your file.
It should be noted that your credit file is private information and cannot be accessed by unauthorised persons like your friends or relatives. You must consent to a lender either verbally or in writing before they may access your file.

You can learn more about all of this on our website. If you want to discuss anything with one of our mortgage brokers directly then you can reach us on 1300 889 743. You can also fill in our free assessment form to see if you qualify for a loan or not.

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

afish
Posts: 63
Joined: Mon Jun 15, 2009 4:46 pm

Re: What are the types of "bad credit" that I may have?

Postby afish » Thu Sep 25, 2014 12:40 pm

You’ve really helped me a lot! Gratitudes, Otto. I took a look at your website and it’s great. I’m convinced that you guys know your stuff so I’ll give you a call within the next couple of days to discuss things. Have a good day :)

moodyjack
Posts: 47
Joined: Wed Jun 17, 2009 4:36 pm

Re: What are the types of "bad credit" that I may have?

Postby moodyjack » Mon Nov 24, 2014 5:03 pm

Hello!

A friend of mine told me that I may be able to remove certain bad credit records from my credit file. If this is true then it’ll make it so much easier for me to take out a home loan. Can anyone tell me whether this is true or not?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What are the types of "bad credit" that I may have?

Postby Otto Dargan » Tue Nov 25, 2014 10:19 am

Hi moodyjack,

You may be able to repair your credit file and improve your credit score by the removal of disputable, unfair, or contestable listings from credit reports. The information that you may be able to remove from your credit report includes:
  • Defaults
  • Clearouts
  • Judgments
  • Court listings
  • Multiple identities
  • Overdue accounts
  • Crossed or linked files
If you get these black marks removed from your credit file then your credit score will improve which would make it easier for you to apply for a home loan and to get it approved. You can learn more about all of this by visiting our website or by giving us a call.

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

moodyjack
Posts: 47
Joined: Wed Jun 17, 2009 4:36 pm

Re: What are the types of "bad credit" that I may have?

Postby moodyjack » Tue Nov 25, 2014 1:50 pm

Awesome! Thanks for your help, Otto. I’ll give you a call tomorrow to discuss this :D


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