With the property market heating up many people are turning their attention to searching for a new home. VICTORIA COSTER, CEO of Credit Fix Solutions explains the importance of your credit report and how it can affect your dreams.
The reality of working from home and necessary lifestyle changes has changed people’s emphasis. Your travel plans may have been disrupted by COVID which means you have put together what you believe is a good deposit but If you are looking at buying your first home or a new property it’s important to understand how to achieve the best credit rating possible for when you approach a broker for a home loan.
The first step is knowing what your credit report is.
It contains information about your credit history. The information is collected from credit providers, courts and other organisations by credit reporting agencies.
There are three credit report agencies* in Australia which service consumers, Equifax, Experian and Illion.
You can pay for a copy if you need one quickly, or you can order a free copy if you’re in no rush and you don’t want to spend the money.
The free report is the same as the paid one, it just takes a few more days to be sent out to you.
An Equifax report can be obtained from: www.mycreditfile.com.au
Your Experian report can be obtained from: www.experian.com.au
An Illion report can be found at: www.illion.com.au
Credit scores range from 0 to 1200. Most people’s credit scores only sit at around 700, but just one failed enquiry on your credit report can drop your score from good to bad.
If you do have a poor credit rating many of the best interest rate loans will be out of your reach. If you have a default or court action, you could be paying more than double the standard rates for finance.
The good news is that you are actively thinking about your credit rating and this is the first step to ensuring that you are putting your best foot forward.
The next step is actively working on your credit rating. It may take a few months for you to see results but ultimately it could help you secure your dream home.
5 Simple tips to improve your credit rating
#1: Pay your bills on time and in full.
#2: Lower your credit card limits.
#3: Check your credit reports for errors.
#4: Make two payments per month.
#5: Consolidate multiple loans.
At Credit Fix Solutions, we offer no result no fee credit repair that guarantees the best investigation possible into the listings on your credit report and you can be confident that with our experience, knowledge and business awards under our belt that you are in safe hands. We offer free and honest consultations on your credit report if you need to ask any questions and can help you with financial assistance agreements.
*You can obtain company reports at a cost from Equifax, Illion and CreditorWatch.
Disclaimer – This article is for information purposes only and is not financial product or investment advice or a recommendation to use Credit Fix Solutions and has been prepared without considering the objectives, financial situation or needs of individuals. Before making an investment decision, a prospective investor should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Credit Fix Solutions is not licensed to provide financial product advice or legal advice to you, your affiliates, or your clients.