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 credit score
The first step is to identify what is causing your loan to fail the bank’s credit score. If you fix the wrong aspect of your situation then you’ll waste a lot of time for little result. This means primarily focusing on problems that are causing your credit score to be reduced.
Only then can then work on aspects of your situation that can improve your credit score, and in doing so you will maximise your chances of getting your home loan approved.
Fix the problems
- Don’t overdraw your cheque account.
- Don’t go over the limit on your credit cards.
- Pay off as much as possible off of your credit cards.
- Pay all of your debts on time, every time.
- Pay any defaults on your credit file & wait for them to be removed.
Improve your score
- Apply for a $500 credit card for the lender you will apply with, pay it on time.
- Don’t apply for any other loans. You want to minimise the number of enquiries on your credit file.
- Stay in your current address & job.
- Open a savings account and save as much as you can.
When you apply for your loan
- Apply with a lender that has lenient credit scoring.
- Include all of your assets in your application such as you cheque account, savings account, furniture, car, superannuation & shares.
- Don’t borrow to your limit.
- Be careful with your loan purpose, some are not accepted.
We are specialist mortgage brokers who understand the credit scoring systems used by the banks. Please enquire online and we can then help you to improve your credit score & apply with a lender that can accept your situation.
