So how do you make sure your credit history shows your best financial side?
Here are 5 basic questions banks and lenders almost always want the answers to (with the proof to back it up):
- What’s your income? In other words, how much money have you got coming in each month?
- Have you been working for the past 12 months? Will this continue for the next 12 months?
- What does your payment history look like for the last 3-12 months? They’ll look for late or missed payments on your credit file.
- What are your spending habits like? They’ll look through your credit card and bank statements.
- Have you applied for a lot of loans or other financial products, and been knocked back? This doesn’t look good.
But banks don’t only have the info you give them. Some people make the mistake of thinking they can hide things – for example, you might have multiple bank accounts or credit cards but only provide statements for the ones with minimal spending. This rarely works, as most of this info can be found on your credit report.
First thing’s first…
Scour your credit report because this will tell you what banks and lenders know. If you’re worried your credit history is looking less than great, there’s actually a lot you can do to fix it, for example:
- If you have a late payment, make sure you make repayments on time in the 3 months before you apply for a loan.
- If you have multiple late payments, spend the 3-12 months making repayments on time before you apply for a loan.
- If you use your personal credit card for work or it has a lot of expenses on it to earn points, spend 3-12 months making sure the expenses on there are minimal.
- If you need to increase your income, pick up some extra-shifts, ask for a raise, or start a part-time job.
- If there’s something incorrect on your credit report, challenge it with any of the 3 credit bureaus.
There’s a lot you can do to make sure you look like a good candidate for a loan, and the first step is getting a detailed understanding of your credit report – so contact us.
A mortgage broker:
Has access to more lenders, meaning you’re more likely to hear a ‘yes!’
Is specifically trained in mortgages and knows how to structure your loan to suit your goals
Acts as your own personal banker, guiding you through every step of the home loan process
Will be your broker for life! You’ll receive ongoing help and advice whenever you need it during the life of your loan
Helping people just like you to find the right home loan is our passion. If you’d like to talk to us about how we can guide you through this journey, feel free to contact us on 1300 466 356 or click the below link, get a quick 60 sec comparison so we can schedule a call back at no cost and obligation free.
1300HomeLoan is innovative and has widely been recognised for revolutionising the home loan industry and creating the competition in the market that everyone is benefiting.
The difference between us and the banks is that the banks only have their products to offer. We have access to all of them. 1300HomeLoan has developed a customer focus approach. Instead of spending your time in researching yourself in the confusing home loan market, we have the tools to provide a quick answer to provide you the most suitable options.