To avoid any issues that may arise with your personal credit history, it may be good practice to check your own credit file before applying for a loan.

This can also highlight any errors that may not be your fault and it is best to get this sorted early to ensure your loan application is processed smoothly. Something as simple as having too many enquiries on your CRAA can have an adverse effect on the amount you borrow.

Your personal credit history can be accessed via the below website.www.mycreditfile.com.au

A poor credit record is one of the main reasons a loan application will be declined. This is because the lender, understandably, takes the stance that if you’ve defaulted on a past loan, what’s to say you won’t default on a new one? In saying that, the lender can use discretion if a default is evident. Factors such as the amount of the default, how long ago it was placed on your report, and if it is still outstanding are all taken into account when an applicant’s credit history is assessed.

However, there are traps for everyone here. We have had a scenario where an applicant (who had been a public servant for 25 years and was only seeking to borrow 56% of the property value) had their loan held up due to a disputed bill with a telephone company. He ended up paying the bill just to get his credit record clean so that the loan could proceed.

Another borrower was defaulted because he’d lived in a shared house and had gone overseas thinking a bill was being looked after.

Diligence is required. Even small blemishes stay on your credit record for 5 years and can make lenders decline your loan.

Trusted Mortgage Broker has a great range of mortgage calculators to help with all those tough decisions that come with finding the right loan. Have a look at our calculators on our website to help you further. www.trustedmortgagebroker.com.au/calculators/

About the Author

Sue Hayter

Sue's service commitment is fantastic. At Trusted Mortgage Broker we work with our clients to ensure they understand their options, know exactly how much they can borrow and ensure they choose the right home loan and the right lender that is not unsuitable to their individual needs.

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