What is a credit file?
A credit file records all information about your credit activities during the past 5 years. Your credit file normally contains the following information:
Personal details such as name, DOB, driver licence number, residential addresses, current or previous employer.
- All credit application and enquiries during the past 5 years
- Any credit defaults or any past credit issues such as judgement, court order, bankruptcy, etc.
It is a good idea to get a copy of your credit file before you apply for a loan. It normally costs you $50 and a copy will be emailed to you within 24 hours. Please contact us for a copy or you can apply directly through the following website:
Credit Scoring – Avoid a busy credit file when applying
Other factors considered by lenders include employment history, residency status, age, the level of personal debt as well as the applicant’s asset and liabilities position.
This will be recorded as an enquiry. If you end up with a number of enquiries on your file it can result in automatic decline by several lenders because you are considered to be a credit risk.
There are lenders who only do manual assessment of your application without credit scoring as long as you can provide evidence of your financial situation.
Most home loan application problems are avoided by organising finance upfront and having pre-approval in place by using the services of an expert mortgage broker like us.
We understand customers’ needs, submit the application to source the most suitable solution and home loan product and obtain loan approval the first time.