Credit checks with banks. What lenders look for.
You’re probably aware by now that it is becoming increasingly difficult to obtain finance within Australia. Under the current financial climate there are problems in Australia for all lenders due to recent findings from the ongoing royal commission. This has made lenders tighten there purse strings, however, you still needs a good credit rating to be successful in obtaining finance so lets look at credit checks with banks.
It’s not all doom and gloom though. Even though lenders are looking closer at applicants background and financial habits, you can still increase your chances by making sure your credit history is tip top. To do that you need to understand what lenders are looking at on your credit file.
Firstly, credit checks with banks are not the be all and end all which determines the outcome. We must understand that there are other important and significant aspects which a lender will consider. Things that you can’t fudge on an application (or shouldn’t) are employment status and length, rental or housing status and length, marital status, age, the area you live in, your assets and liabilities plus many more.
Ensuring all of the above are true, accurate and consistent with what you offer on an application is important. Some of this info goes on your credit file and lenders will cross reference to see if you are being consistent with what you tell them.
Then there is the obvious. Defaults and court actions. No one needs these on their credit file and if they appear during credit checks with banks then you have major issues. Some times these issues can be cleared and sometimes not but we won’t go into that right now. Further info on that topic can be found at Fixbaddebt.com.au.
Make sure there are no duplicate entries. This is a common nuisance which previous lenders cause on your credit history file but is easily fixed and you can do that yourself for free. Simply contact Equifax directly and request info on how to amend basics credit file mistakes. It really is not that hard !
Credit checks with banks do not look good if you have been applying excessively for finance. Too many applications with say the last two years is not good and your credit score will be penalized. Play it safe and keep application to a minimum and importantly make sure you do not apply for “fast money finance” or payday loans. Those applications on your file are considered a sign of desperation which lenders frown on big time.
So in summary check your credit file before applying for finance. Don’t leave it up to a bank to tell you there is an issue on your credit rating. Good luck and feel free to call or email us any questions that we could help answer for you free of charge.