Discover How To Beat The Credit Scoring System!
Did you know that you can borrow up to 95% of the purchase price with lenders that do not credit score? This option allows people who have failed the credit score of one of the major banks to still buy a home, and get a competitive interest rate.
You must still be credit worthy, however the lender will use common sense & their guidelines rather than a computer generated decision. This is ideal for people who are just outside of the bank's lending criteria.
Which lenders offer no credit score loans?
There are several bank & non-bank lenders that do not credit score applications. The rules vary significantly depending on the lender, …
When you apply for any type of credit, be it a mobile phone contract, credit card, personal loan or home loan, the credit provider will give your application a "credit score". This score is their automated assessment of how risky your application is to them.
There is no human involvement in the credit score outcome, your application is instantly assessed by a computer with no common sense or reasoning. For this reason people who have been declined for a loan simply because their credit score failed often feel like they haven't been given a fair go.
The Australian system is unique!
In the United States there are country wide credit reporting …
Your credit score is a computer generated assessment of the risk of your loan application. In Australia it is specific to each lender, in other words your credit score will be different depending on which lender you apply with.
Your score will result either in your loan being approved, declined or referred to a credit officer for manual assessment.
So how does your credit score work? And how do lenders calculate it?
What information is used to calculate my score?
Your home loan application contains a huge amount of data that the lender can use to assess your application. The banks do not specifically publish the exact algorithms & …
Has your bank declined your home loan application because you failed their credit score? Unfortunately when this happens nobody at the bank can tell you why! This is because the banks credit scoring systems are somewhat of a black box, even the credit officers don't know exactly how it works.
The good news is that we do know some "red flags" that almost all credit scoring systems pick up. These will normally result in your loan being declined. The good news is that not every lender credit scores. If you need help applying for a mortgage then please enquire online to speak to one of our mortgage brokers to see which lenders you will qualify …
As much as we hate the banks and dislike the way banks assess loan applications using a computer, there are several good reasons why they use credit scoring. The benefits for the banks far outweigh the problems, and they certainly don't seem to be concerned with how angry their customers get when the "computer says no".
So why do the banks use credit score? Read on to find out.
Without a doubt, credit scoring is incredibly good at making the right decision. Banks track the performance of the loans that they have approved, and they consistently see that loans that were approved by credit score tend to have a very low level of arrears.
Is your credit score a problem? Each Australian lender works out your credit score in their own way. So you may want to read about the common causes of a low credit score before reading this page about how to fix your score.
Before you improve your score, you may instead want to try a short cut! The easiest way to get your loan approved is to apply with a lender that does not credit score! Our mortgage brokers are experts in the different methods of credit scoring used by the major banks and other lenders who do not use credit scoring. Please enquire online or give us a call and they will help you to work out your options.
How to raise your …
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