Many people are not fully aware that a credit file are directly recorded once you apply for a loan, credit card, or failed to repay a loan. These credit records will always be part of your credit file. Loan providers generally make a background check and make enquiries regarding your credit history prior to loan approval.
In cases where there are questionable entries or any hint of instability in your credit records, this could mean your credit score may not be very convincing to loan providers. Too many questions on your credit history can decrease your financial capability as a loan applicant. Therefore, you need to make sure that your credit history is remarkable.
So there you see it. Your credit history is actually like a sleeping giant.
Loan providers usually look into the number of enquiries in your records to make sure that you do not have large credits. That is why if you have been trying to raise money thru a number of lenders, it is an advantage to inform your mortgage broker ahead of time.
You can look at you credit records at www.mycreditfile.com.au.
You will receive an email when there are possible changes made to your credit file, and all you have to do is sign up for a credit alert. This keeps track of all your records, especially when your identity is used in applying for a credit loan, and alerts you for any possible theft in identity. It really pays to be careful. In fact, I had a colleague who had a client whose loan was rejected because someone had stolen her identity.
It does not mean though that someone’s loan will be turned down simply because of having too much enquiries on their credit file. It is as if losing points in your licence that would take you years to get your credit evaluation back to normal.
If you have a common name, you should be mindful that enquiries for people with the same name could possibly be added to your record by mistake. Nevertheless, if proven otherwise, it may be erased from your record.
We have been able aid our customers in sorting out their problems with regards to your credit records, and we can trim down the amount of applications in loans that you make because we suggest an appropriate home loan upfront.
We can get your credit file for only $10 if you need to get it in just one day – which is really economical. Every small piece counts.