Your credit rating comes in the form of a single number. If the number is too low, you will not be accepted for credit. If the number is high enough, you will pass that part of the application process. If you want to discuss your credit file, you could contact your mortgage broker. Contact a mortgage broker if you want impartial advice on your credit file and the information within.
The main source of information they will use is your credit file. This file will usually be compiled by a central agency. There should be about six years worth of information on your file. The information will include things like credit cards and utility accounts you have had, including credit limits and repayments attached to those products.
There might also be some negative information on there such as missed payments or credit defaults. This is the sort of information that credit providers will scrutinise the most when assessing your application. Even the smallest blemish can be enough to force a highly regarded mortgage lenders to decline your application, so it is important to protect your credit rating if you wish to buy a home.
Your credit score may not be the same for each company that assesses it. This is because they have different systems in place. They also have different scorecards and cut-off points when assessing applications. Therefore, you might be denied a home loan at one lender, but you might be approved by another lender that has less strict criteria.
From this, you can see how important it is to protect your credit rating. Allowing blemishes on your file could force you to borrow money from a less reputable lender at a higher interest rate, or could see you denied credit entirely.
Obviously the best way to protect your credit file is to keep up the payments on your credit products. Details of late payments can remain on your file for up to six years, even if you make the payment at a later date.
If you are unlucky enough to have blemishes on your credit file you should see if you can fix them. Contact the companies that have applied the black marks to your record and get all your payments up to date. Sometimes mistakes enter your file, so you might be able to have them removed.
Some lenders will still accept you for a mortgage if you have black marks on your credit file. Usually non-conforming lenders will still consider your application if your credit file is not perfect.
The major banks are unlikely to lend money under these circumstances, so contact a mortgage broker to find out which non-conforming lenders will consider your case.
About the Author:
By: marktc
Seek out professional advice from an independent Mortgage Broker next time you are looking for home finance at www.moneynet.com.au/ today www.moneynet.com.au/
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