🏋️♂️ Are you credit fit? 🏋️♂️
Over the next few days I'll be sharing your six-step plan to ensure you are credit fit.
Credit in Australia is changing due to the Banking Royal Commission, changes to lending practices and the introduction of Comprehensive Credit Reporting. It is more important than ever to know how credit fit you are before applying for a home loan, personal loan, or anything credit related. *
If you have you ever completed a half or full marathon, you would know that you had to prepare for the event months in advance. You would have a fitness plan leading up to the event so that you knew you could complete the marathon within a certain time frame. Obtaining a home loan also requires preparation and planning, particularly if it is your first home purchase.
Here is tip number 1️⃣.
*️⃣UNDERSTAND YOUR CREDIT SCORE*️⃣
Comprehensive Credit reporting (also known as Positive Credit Reporting) came into force on 1st July 2018. Previously, your credit report information included credit enquiries (loan and credit applications) and payment defaults, insolvencies, bankruptcies and debt agreements. *
Now, your credit report also includes:
*️⃣ The type and credit limit of accounts you have open;
*️⃣ Dates the accounts were opened and closed;
*️⃣ Current limit on each account; and
*️⃣ Up to 24 months of repayment history, including when you make your payments on time and when you’re late.
*️⃣ This applies to home loans, car loans, credit cards and personal loans.
This data is used to calculate your credit score. Your credit score is used by most lenders to assist in determining if they will approve or decline a loan for you. It is important that you take control of your credit file by checking what is on there and knowing what your score is. To find out more details read my blog - link in my profile.
Contact us at Wyze Finance to discuss your lending needs.