Browse Forums Home Finance 1 Oct 31, 2008 10:04 am I am hoping there may be some more experienced people on here with some Australia specific knowledge and advice - everything "credit rating" I can find seems to relate to America!
Anyway - I am looking at some people's postings about having a "good credit rating" or not - I have received a credit report form baycorp which is all fine - it shows you when you have applied for credit. But why would one person's report be better than another's (assuming there are no unpaid outstanding bills or defaults etc), and how can you improve your report to become one with a "good credit rating"??? Many thanks in advance, and very excited to have found this site! Re: How do you know if you have good credit? 2Oct 31, 2008 1:06 pm loco But why would one person's report be better than another's (assuming there are no unpaid outstanding bills or defaults etc), and how can you improve your report to become one with a "good credit rating"??? This is a very mysterious topic you have touched on. US definition of standard consumer credit rating doesn't apply here. Every lender (and mortgage insurer) have their own standards and credit scoring system. I doubt anyone can explain properly in public how it works, but I can say there are different standards for the type of loan you are applying for and which lender you are applying to. Your rating as per each lender depends on whether applying for a credit card, personal loan, car loan, home loan etc. A basic factor is what you mentioned, ie.not having defaults on your Baycorp file, another one is your asset backing (whether you own any real assets) and (sometimes used) whether you have been a responsible customer of other lenders in the case of unsecured credit. Having a default on its own is not a barrier to approval; rather what is the type of default, (credit or non-credit) phone bill, council rates, credit card or mortgage. These are all perceived differently in any given credit application. To cut it short, if you had a 3% deposit and were applying for a home loan and you had a $200 mobile phone default, you may be OK as long as it is paid. But your personal loan application would be declined with a default like that. Re: How do you know if you have good credit? 3Oct 31, 2008 1:19 pm Thanks thlo - that is really helpful.
So a lender compares your previous loans and how you have handled those to what you are applying for... and the more responsible long term loan relationships you have had, the better, I assume.... Perhaps that explains why some people say you should get a credit card to improve your credit rating?? Makes sense! Kinda! Home loan tips, car loan tips, sydney 4Oct 31, 2008 2:02 pm loco Thanks thlo - that is really helpful. So a lender compares your previous loans and how you have handled those to what you are applying for... and the more responsible long term loan relationships you have had, the better, I assume.... Perhaps that explains why some people say you should get a credit card to improve your credit rating?? Makes sense! Kinda! Applications for mortgages and unsecured lending are treated very different to each other. For a first home loan application, even if you are a migrant who arrived in Australia 12 months ago with no assets and never had a CRAA file here (never applied for finance), you are treated equally (well sort of), provided it is acceptable by the lender's policy, with someone who has had many loans and paid them off on time. Being a migrant with no credit history does not necessarily disadvantage an applicant for a home loan as long as other conditions are met. For a car loan or personal loan, you are spot on! If you never had a CRAA file and the personal loan application creates your file, don't hold your breath for approval. Also, if you have real assets and you haven't used any finance for the last 5 years, approval will be difficult even if you only need $20,000 in a personal loan. Continuing responsible use of credit is important. PS.I am only talking about standard lending products, there are many private lenders out there who claim anyone gets a loan and I don't know anything about those. Re: How do you know if you have good credit? 6Nov 01, 2008 2:08 am loco says he's already got a copy of his file.
It's a good idea to receive a free copy of your credit file every 6-12 months just to monitor who is accessing your file. You just have to send a fax or letter to Veda Advantage Public Access PO Box 964 North Sydney NSW 2059, Fax: (02) 9951 7880 with the following; Your full name Your date of birth Your driver's licence number Your current residential address Your previous addresses Your current employer or a previous employer Name of the organisation to which you last applied for credit A daytime telephone number Your signature How you would like your file sent to you, via: Post, Fax or Email Re: How do you know if you have good credit? 7Nov 08, 2008 1:13 pm This topic is very interesting. I've never requested for my credit file before but I am worried that I might have a bad credit rating for previous situations. When I was younger, i owed centrelink money and because I was broke, couldnt pay it back. To cut a long story short, they got the debt collector onto me and they made a payment plan, which I have since paid off about 5 years ago.
I've also had other things like paying phone bills late, paid my credit card really late. its not that I didnt have the money for it, i just always seem to forget about it and say i will do it later!! My partner and I will be going for a loan around March 09 for Pro pack as i heard they are best for a land and house building situation. I'm worried that we might be rejected by the bank because of my previous credit history. We will have well over 20% deposit when we go for the loan. What are your thoughts Thlo? Idiots are fun, that's why there is one in every village! - Dr. House - Sydney Home Loan Advice 8Nov 08, 2008 3:10 pm wonderland This topic is very interesting. I've never requested for my credit file before but I am worried that I might have a bad credit rating for previous situations. When I was younger, i owed centrelink money and because I was broke, couldnt pay it back. To cut a long story short, they got the debt collector onto me and they made a payment plan, which I have since paid off about 5 years ago. I've also had other things like paying phone bills late, paid my credit card really late. its not that I didnt have the money for it, i just always seem to forget about it and say i will do it later!! My partner and I will be going for a loan around March 09 for Pro pack as i heard they are best for a land and house building situation. I'm worried that we might be rejected by the bank because of my previous credit history. We will have well over 20% deposit when we go for the loan. What are your thoughts Thlo? Hi wonderland, with 20% deposit or equity you are in a better position that you would have been if you needed LMI (lenders mortgage insurance) 80% or above ratio. With LMI, it would have been very tricky indeed. First things first; get a copy of your file (it's free if you follow the above instructions) and highlight all the problems, group them into credit (as in a loan or credit card) and non credit (as in bills, etc), group the credit into secured (eg. car loan, mortgage) and unsecured with the amounts and whether paid or unpaid. If applicable, immediately pay any unpaid defaults and have written evidence that the payment fully meets your obligations and the status will be changed to PAID default. Having said all that, paying bills late does not always lead to an entry on your credit file, I have seen people who have never paid their loan repayments on time over many years and they didn't have any defaults. But they wouldn't have any chance of a new loan with the same lender again or refinancing that debt to another lender. No bank will lend if there is any unpaid debt obligations. Some banks have a policy of declining even if it's $100 OneTel default (I say OneTel because there are many Australians with a OneTel default). With no LMI and the bank's credit assessor looking kindly at your explanations (yes you would need to have a well thought out and written 1 page sorry note to support your application) you may be OK. Once you go through your CRAA file, you can send me an web inquiry (site below) and I can give you more tips. Re: How do you know if you have good credit? 9Nov 08, 2008 9:44 pm Thanks Thlo for the assurance! Idiots are fun, that's why there is one in every village! - Dr. House - Re: How do you know if you have good credit? 10Dec 22, 2008 10:52 am stonecutter1309 just to correct this, it's not free quote from their website: Quote: For $29.95 including GST, you will receive a copy of your credit file within one working day via email, fax or mail. enjoy your life! sydney home loan advice, first time home buyers 11Dec 22, 2008 12:26 pm monsoon stonecutter1309 just to correct this, it's not free quote from their website: Quote: For $29.95 including GST, you will receive a copy of your credit file within one working day via email, fax or mail. monsoon if you read it more thoroughly, it explains how you get your free copy. It's actually repeated on this page, 4th post up from yours. Re: sydney home loan advice, first time home buyers 12Dec 22, 2008 1:45 pm thlo monsoon stonecutter1309 just to correct this, it's not free quote from their website: Quote: For $29.95 including GST, you will receive a copy of your credit file within one working day via email, fax or mail. monsoon if you read it more thoroughly, it explains how you get your free copy. It's actually repeated on this page, 4th post up from yours. that's right and that is the proper way to get a free copy on that post but people might think by filling out the form on mycreditfile.com.au and entering their cc details etc that they will get it free. The post wasn't clear on what is free but the post with the deails on how to fax it is what people should be reading and not going to mycreditfile.com.au. enjoy your life! Re: sydney home loan advice, first time home buyers 13Dec 23, 2008 10:07 am monsoon thlo monsoon if you read it more thoroughly, it explains how you get your free copy. It's actually repeated on this page, 4th post up from yours. that's right and that is the proper way to get a free copy on that post but people might think by filling out the form on mycreditfile.com.au and entering their cc details etc that they will get it free. The post wasn't clear on what is free but the post with the deails on how to fax it is what people should be reading and not going to mycreditfile.com.au. There used to be a downloadable form for free reports but they removed it probably because too many people were using the free form. I had an old shower unit that broke on me and when I took it off, there were only 2 water pipes, instead of the normal 2 water pipes and a shower head pipe. S o I… 0 36939 The most definitive answer to your question James is this taken from the James Hardie Axon Cladding Installation Guide - i just happen to have it… 5 3673 Thanks mate. Yeah good points! 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