Any person in Australia who has ever applied for finance of any kind will have a credit report in their name. With the rules around credit reports changing, do you know what yours looks like and whether it is correct?Credit Report Changes
A new scheme that has just been approved by the government allows for even greater detail to appear on your credit report.
These changes are designed to enhance privacy for consumers but will also allow for greater transparency of your financial information to credit providers.
What do Credit Providers Look For?
All licensed credit providers can access information about the repayment history of potential borrowers and you may be surprised at what rings alarm bells for them.
Everytime you apply for a loan on-line or in person, your credit report is updated. If you apply to a number of institutions, or if you have an approved loan and it lapses during the approval period there will be a record on your credit report.
The majority of financial institutions like to see a clean credit report and judgments or defaults, no matter how small, can severely affect your borrowing power. This might even include late payments or defaults on certain credit cards and phone plans.
How can a mortgage broker help?
Many people are unwittingly impacting their credit report just by enquiring around town about loans that may be available to them. Using a mortgage broker to do your loan research means that not only do you not have to do the legwork; your name does not get bandied about. Good mortgage brokers can source loan options based on your profile rather than your name, allowing you to remain anonymous until you actually make the application.
A mortgage broker can also identify any likely issues with your credit rating and either work for you to have incorrect inclusions removed, or find a lending institution that is comfortable with your profile.
Keep in mind that mortgage brokers can source any kind of credit for you, including leases, credit cards, margin loans, home loans, investment loans, commercial and business loans.
Want to give your credit report a health check?
We can help you access your credit report, make sure any anomalies are cleaned out and ensure that the loan applications you make through us do not unnecessarily appear. Knowing how to keep your credit report as healthy as possible is just part of the service.
If you would like some assistance with your credit report or any borrowing needs, please call Tricia Williams on 0416 358 251. Patricia Williams is a credit representative (400458) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237).