For non-professionals, the financial world can feel confusing and overwhelming at times, but by understanding the truth about credit, you can guarantee you keep yours in line.
Credit reports cost money
While accessing your credit score on a constant basis can cost you money, regularly keeping track of your credit profile is actually free if done the right way.
Generally speaking, all Australians can get a free annual copy of their credit report from the various credit agencies.
In fact, according to the Office of the Australian Information Commissioner, a free copy is typically required to be given.
However, charges may apply if you request to receive your copy immediately.
Also be sure to request a regular report from all agencies, as there may be differences between reports, with one agency showing inaccuracies that others don’t.
Credit worthiness is based on failure to pay bills
While failure to pay back outstanding debt will certainly damage your credit score, your credit worthiness is based on many other factors, as well.
For instance, each time you apply for a loan or take any other actions that require a credit check, it counts as a credit enquiry. These enquiries can add up quickly and negatively affect your credit score.
Additionally, while it’s generally a good idea to have varied credit, having too many credit cards or outstanding debt obligations, even those that are paid on time, can count against you.
Bad credit means no home loans
Bad credit can indeed make it more difficult to obtain a mortgage, but it’s far from impossible.
Bad credit home loans are specifically tailored for mortgage borrowers who may have less than sterling credit histories, and by meeting certain requirements, even those with past credit mistakes can obtain home financing.
If you you’re in the market for a bad credit mortgage, contact the specialists at Redrock.