Lenders are all about risk. If you have an excellent credit score, you are more likely to be approved for a loan and with favourable lending conditions. Your credit report lists the percentage likelihood of you having an adverse event that may prevent you from making payments, based on your credit history. A poor credit history has the opposite effect.
Credit History – Credit Issues Can Be Solved
Lenders are all about risk. If you have an excellent credit score, you are more likely to be approved for a loan and with favourable lending conditions. Your credit report lists the percentage likelihood of you having an adverse event that may prevent you from making payments, based on your credit history. A poor credit history has the opposite effect.
Credit issues can be solved – When considering taking out a home loan, it’s always a good idea to obtain a free copy of your credit file from one of the three reporting agencies – Experian, Equifax, or Illion.
do I do if there is a mistake on my credit report?
- Contact the credit provider and credit reporting agency and ask for the mistake to be removed
- If that doesn’t happen within 30 days, lodge a complaint with an external dispute resolution service such as the Australian Financial Complaints Authority (AFCA) or the relevant industry ombudsman (Telecommunications Industry Ombudsman for telco-related mistakes, and your State or Territory Electricity, Gas or Water Ombudsman for utility-related mistakes)
- If you still do not achieve the result you need, file a complaint with the OAIC, which has the power to investigate, order compensation, and issue fines.
If you’ve had credit issues affect your credit score and it has prevented you from accessing credit, it may be worthwhile taking advice from a Credit Repair Agency so they can guide you as to whether a negative item on your credit report may be able to be removed. There are many to choose from but be careful to work with a reputable firm by checking reviews. For more information, see the FAQ here from Credit Fix Solutions.
In summary, there are many variables that play a part in calculating an accurate borrowing capacity. Online calculators are a very broad estimate at best. Your expert mortgage broker has access to the servicing calculator for every lender on their panel. We can and will run your income and expenses through several servicing calculators for the lenders that fit your circumstances so that you have an accurate, current borrowing capacity when you are ready to apply for a Home Loan. Don’t wait until you need the home loan, contact us early, with no charge or obligation so that you are credit ready when you need to be. It can be daunting, but it doesn’t need to be. Contact us today so you know where you stand and how to improve your position.
