Browse Forums Home Finance 1 Sep 25, 2014 7:40 pm I am having massive problems getting a loan and all for the wrong reasons. I got a loan via a broker to purchase my land in 2012. at the time i wanted to put a shed on it, but decided against this as i thought my money would be better spent building a house. while i was trying to figure out the best moves, i spoke with my bank about my options. i was told i could borrow x dollars. anyhow, i then went onto getting my house plans drawn, engineered, soil tests and so on. i then approached the builders and got a quote for the house construction. as i have already mentioned, i obtained pre approval for a house construction loan. once i had the builders quote i took this to the bank. the bank informed me i had to then get a formal contract before they would go ahead with the valuation. i did this. during this process, the loan amount changed a couple of times with shifting construction details. i asked the bank if the valuation would be problematic. i was told that valuations rarely come in at lower values. however, this is exactly what did happen. the valuation came in at $90k less. coupled with this, i was informed that the valuator said my type of house construction (steel frame) was overcapitalising. i then suggested to the bank that i build only a 'portion' of my house. the house has been designed with this in mind. i can build two thirds of the house. the new house price was obviously much less. the bank got in contact with the valuator with my new approach and put forward my suggestion. the response i got back was the same: no matter what i do in terms of house size etc, i would still be overcapitalising!!! i spoke with the bank about this and told them they misunderstood the construction concept. they think my house is a "kit home"when in fact it isn't. i have learnt that i can build in besser cement block and this would be acceptable. never mind the fact that in doing so, i t would end up as a sweat box here in the tropics. since then, i have obtained a new quote for the original size house. its now $70k less!!! (i do believe the original builders quote was overinflated…but you live an learn as you go along!). i bypassed the original bank as they did not express any interest in discussing my new quote. i approached another lender who has said they will lend me the money BUT i need to lower my Credit Score! I was shocked to learn about the unfavourable Credit Score. My credit standing is otherwise untainted. I have no problem servicing the loan amount. No other debts save for the land loan. No dependents. own my own new vehicle. NO rent. good income. life insurance. superannuation. etc etc. I have since learnt that every time i spoke to the original bank, they loaded up my Credit Report with the enquiries. There is a total of 16 on the report. This has meant all the times I have been discussing my options with the bank, trying to figure out what i can achieve etc, (just as anyone would do when about to make a life long commitment): these "enquiries" have been entered onto my Credit Report. I was never informed that these enquiries etc would negatively impact upon my ability to borrow money. I am effectively blocked from obtaining a loan. I have lodged a complaint with the original bank and the financial ombudsman. Can anyone offer some advice please? Im at a loss as to what to do. How does anyone new or unfamiliar to lending go about making bone fide enquiries without committing themselves to credit reporting each time you ask a bank if you can borrow money??!! whats the point of "shopping around" if this is what happens? how can anyone get sound advice if you cant get a solid response from the bank? Re: Credit Report problems 2Sep 26, 2014 8:22 am Over what sort of time frame did this happen? 16 is a huge number and if it's all from the same bank I'd be putting in a complaint, with a view to remocing the additional searches . There's often no need for the same lender to do multiple enquiries unless your circumstances have changed or a lot of time has passed. Apart from that there are lenders out there who don't credit score. I'd search out a broker who can find one for you. Just make sure they are aware of your situation so they don't do additional searches. Re: Credit Report problems 3Sep 26, 2014 8:41 am I think there are companies around that specialise in credit rating restoration, do your homework but tread carefully. A good mortgage broker should be able to assist you. In your case since there are no defaults and no serviceability issues it is particularly harsh and unfair. I think a complaint to financial services ombudsman and even a attention from current affairs or similar may get you a result. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Credit Report problems 4Sep 26, 2014 9:05 am thank you for your replies. i am a grown woman of 52 years of age but I'm sitting here feeling utterly miserable and crying! i cant believe the current situation i am in. i have put in a complaint to the bank and they will remove only two of the listings on my credit report. the new lender will still want to do another credit check so this is then another entry onto my credit report! it seems like a case of damned if i do, and damned if i don't. the listings first date is feb 2012. so its across the last two years. i work away as a remote area nurse so i had a lot of trouble getting things organised from a remote WA aboriginal community where i am the only nurse etc etc. i have also put in a complaint to the financial ombudsman. i just don't know what to do next or how i can get myself out of the current situation. i have no defaults and serviceability is not an issue. all of my enquiries to the bank were genuine and for the one loan. UPDATE: the bank just phoned me. they are going to give my case to their overflow lender who is in another branch. apparently the women who i have been speaking to in the local branch are not actual bank lenders, they are just "custom service operators"!!! the overflow lender in the other branch is an actual lender who handles difficult cases. bernadette Re: Credit Report problems 5Sep 26, 2014 2:02 pm This is a weird one. The only way that lenders can do a credit check is if you apply with them and sign some paperwork (normally the privacy acknowledgement) to allow them to delve into your credit history. If you just enquire without going through any formalities then there shouldn't be hits on your file. The whole thing about hits on your credit file is that lenders have to follow due process to the letter, if not then they have to remove the listing. That's what those credit repair agencies look for when you engage their services. They go through and try to find a loophole where the lender hasn't followed due process and as a result have the listing removed. The thing is the Ombudsman does basically the same thing, however at no cost. I had a client recently with a default listed against their name and the corresponding provider not willing to remove it (my client was adamant they weren't at fault). I saw that what was on the credit file wasn't matching up with the story I was being told (figures and dates were incorrect), so I advised them to go to the ombudsman. The default was removed within a few weeks. Seeing that your lender is willing to remove two of the file hits, it suggests they might know they incorrectly put them there which leads to the situation of are the other listings kosher? Definitely have the ombudsman look at it. It may take a few weeks but it may be well worth it in the end. Cheers Tom Re: Credit Report problems 6Sep 26, 2014 5:38 pm thank you for your comments tom. i wonder if you could try and answer another question i have: irrespective (at this stage of reporting) are there any negative consequences to any bank when reported to the financial ombudsman? Re: Credit Report problems 7Sep 26, 2014 10:57 pm If the complaint becomes officially registered then the lender will get charged (invoiced) for it and have to pay a fee. Then dependent on high up it goes, the larger the fee becomes. However any real consequences? Not really, its not like the lender will receive a bad name out of one single complaint, as there are sure to be many floating around. Cheers Tom Re: Credit Report problems 8Sep 27, 2014 6:46 am Realestate mortgage enquiries don't make your credit score too bad. Did you check your credit score? Also request a copy of your credit report from Veda. Mostly banks use Veda for credit check. Other credit rating companies like B&D don't hold enough credit information. You can get it from http://www.Veda.com.au I always suggest people to subscribe for Veda alert service. It cost you money but it saves you from lot of trouble too. Re: Credit Report problems 9Sep 27, 2014 7:28 am yes i had my subscription to veda ongoing from a few years back. however there was a hiatus at some stage with the subscription so i missed a number of alerts. oddly enough my current credit score is rated as "good" on the veda report. obtaining a credit report and being subscribed to the alerts is one thing. understanding and knowing how and why these can impact upon your lending ability is another. i am somewhat annoyed the woman i had been dealing with in the bank was not a "lender". she is only a customer service officer. the bank manager told me this yesterday. all of my troubles highlight one very important aspect in my way of thinking: people have removed themselves from the equation and are now reliant upon computer modelling to drive decisions. Re: Credit Report problems 10Sep 27, 2014 9:02 am Thats exactly what i thought your credit score can't be bad just because of mortgage enquiries. mortgage enquires don't make bad impact on credit score. i would highly recommend to see a good broker, and discuss this whole situation with him/her. always ask bank to do valuation before hitting your credit file. most of bank can arrange valuation before credit check. you or your broker need to request this at very first place. lower valuation is common issue. in my opinion valuers live in lala land if you need LMI please avoid small banks, go with big 4. Re: Credit Report problems 12Sep 27, 2014 12:03 pm 833-1200 EXCELLENT You’re in the top 20% of Veda’s credit-active population, suggesting it’s HIGHLY UNLIKELY that an adverse event could harm your credit report in the next 12 months. Your odds of keeping a clean file are 5 times better than Veda’s average population. Action - Leverage your score Seek out the best deal using your excellent credit score. See if you're eligible for greater rewards, lower rates and lower fees. You may also have greater borrowing capacity. 726-832 VERY GOOD Your VedaScore suggests it's UNLIKELY that you will incur an adverse event in the next 12 months that could harm your credit report. Your odds of keeping a clean credit report are 2 times better than Veda's average credit-active population. Action - Leverage your score Refinance and consolidate more expensive debt. Check your credit report regularly to monitor where you stand. Get a better rate on personal credit; negotiate rewards and lower fees. 622-725 GOOD Your VedaScore suggests it's LESS LIKELY you will incur an adverse event that could harm your credit report in the next 12 months. Your odds of keeping a clean credit report over this period are better than Veda's average credit-active population. Action - Leverage your score Consolidate expensive debt into a low-interest loan with fixed repayments. Check your credit report regularly to monitor where you stand. Use your score to get better rates on unsecured debt, including credit cards. 510-621 AVERAGE If your credit score range is Average, your VedaScore suggests it's LIKELY that you will incur an adverse event such as a default, bankruptcy or court judgment in the next 12 months. Action - Improve your score Pay your loans and bills on time. Use direct debits on payday. Work out payment plans with credit providers. Avoid making many applications in a short period of time. Review your credit report for free as soon as you're denied credit. 0-509 BELOW AVERAGE If your credit score is Below Average, you're in the bottom 20% of Veda's credit-active population, suggesting it's MORE LIKELY that you will incur an adverse event such as a default, bankruptcy or court judgment in the next 12 months. Action - Repair your score Request and review your credit report. If there are inaccuracies, contact the credit provider or credit reporting body to correct them. If you're in hardship, seek out a financial advisor or work out a payment plan with credit providers. Re: Credit Report problems 13Sep 27, 2014 7:05 pm mirz, yes i agree that valuators do live in la la land. whats their credentials? Re: Credit Report problems 14Sep 28, 2014 8:15 am I think it is not their qualifications that is an issue, they will have a degree or diploma, but the risk management. They will have to assume likely value in the event of forced sale. I think your problem was high contract amount. 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