Top Tips On Having Squeaky Clean Credit

As you may have heard, in March 2014 there were some major changes made to the way YOUR credit history is now being recorded. I won’t go into too much detail but you can certainly read about the changes on this ABC Article.

In summary….these changes are going to have a HUGE impact on many people so I thought I would share with you some of my top tips for riding these changes without even worrying about what lenders can and cannot see!

My Top 10 Tips For Having Good Credit

  1. Put a list together of all of your banks and utility providers to contact when moving homes. This is the number one reason people have unpaid bills!
  2. If you move homes frequently, why not switch to online bills or direct debit? Most providers will give you a small discount for direct debits…and guess what! Searching for a bill is as easy as googling your emails!
  3. If you are going through a tough time, always contact your lender in advanced if you think you are about to miss a payment
  4. Schedule your direct debits for your home loan and other large payments to come out at least 2 days AFTER your pay cycle. This will give your employers bank enough time to clear the funds in your account
  5. If possible, and you have an offset account on your home loan, always try to leave a buffer in there equivalent to at least one months repayment. It will make no interest saving difference by being in your offset account or in your home loan for redraw but it could save you the hassle of missing a repayment!
  6. If you have a small credit card limit and routinely go over the limit then you may want to consider increasing this so it does not happen. Most people do not realize the extra fees you pay by going over limit and also the negative impact this has when applying for a home loan.
  7. If you do end up missing a loan repayment or even a credit card by accident, and have the funds to fix this straight away then make sure you contact your bank and notify them it was a “one off” occurrence. Chances are, if you are an existing long time customer and they can see good history in the past then they will waive the late payment fees and it will not affect you applying for credit if it can be seen that a late payment fee was not charged.
  8. Be wary of applying for credit online with lenders, or researching and completing forms without reading the fine print. All it takes is for you to tick a box that you have read the privacy disclosure and once you hit submit, you have more than likely run a credit check through that lender adding an inquiry to your credit record.
  9. When taking out a new loan, always setup internet banking and mobile access so that you have complete visibility on your loan and repayments going through. Most banks now show real time transfers which helps!
  10. Last but not least….have a budget. Have a household budget. By having even the most simple spreadsheet of what you spend you are likely to make sure you pay your out goings on time as you will expect the date it comes out. Happy Days…

Not sure if your credit is good enough for a competitive lender?

If you have concerns about your credit record, and about to apply for a loan, you should speak with your broker with your credit report already handy to provide them. An experienced broker will determine which lender will consider you before even making an application saving you on more unnecessary enquries! Call me on 0403084 762 to discuss!