What can your credit report influence in your personal life?

Credit Simple — Sun, 18 Mar 2018 00:54:48 +0000

How regularly do you check your credit report? If you don’t know what’s on it, there’s a chance you could have defaults against your name that shouldn’t be there.

A credit report will show you what loans you’re missing payments on, either because someone has taken out a fraudulent loan in your name or you forgot about a loan you’d taken out. There’s a lot of crucial information on there, and lenders use the document to find out about what kind of debtor you’ll be and what interest rate to offer you.

To stop bad debt affecting your life and lowering your credit score, you need to check your credit report regularly.

What does bad credit affect in Australia?

Spending power

Banks are about making money and ensuring they get paid what they’re owed on time. That includes credit card payments, account fees and home loan repayments. If you have struggled to pay on time in the past, the banks will only offer you higher interest rates because you pose more of a risk. A higher interest rate represents more money overall for the lender, but is also an incentive to pay what you owe on time. If you don’t, the total amount you repay will be significantly higher than what you borrowed.

Relationships

You should be wary when opening a joint account with someone who has a bad credit report as well. It’s not a nice conversation to have, but if your name is on an account shared with a partner who can’t handle their finances, your personal credit report could be affected too. When they forget to pay a credit card bill on your joint account, both names on the statement will have a default marked on their credit reports.

Before you open a joint account with your partner or friend, have that hard conversation – it could save your financial future by removing the risk of a default going on your credit report for a mistake they make.

How a bad credit report affects home loans

A bad credit report can affect more than your ability to open an affordable credit card account – it can also stop you from taking out an affordable home loan. Make sure your credit score is clean and healthy (tip: you can check yours right here on Credit Simple).

A bad credit report can stop you from getting a favourable home loan.

Family stability

The future of your family could be jeopardised by poor choices in your past. They do eventually come off your credit report after five to seven years, but that’s a long time to wait if you’re trying to start a family. One major step you’ll want to take with your partner and potentially children is buying a family home that you can make your own and grow into over some time. That’s not something you can do in a rental, which is why buying is such an attractive option.

Being financially irresponsible or falling into money troubles can affect your personal life and your family for years and years. It’s vital that you keep your credit report clean by paying bills on time and repaying loans in a timely manner. The consequences for not doing so could stop you from opening a new credit card account or even buying a dream family home.

For more information about your credit report, what it affects in your personal life and how to check it regularly, get in touch with Credit Simple today.

The post What can your credit report influence in your personal life? appeared first on Credit Simple.

Top tips for new renters: Eight things to know before you apply

Credit Simple — Tue, 13 Sep 2016 01:37:54 +0000

Getting your first rental is a rite of passage into the big wide world. You’ll have lots of fun times nesting in your own space. But there’s a lot to learn to make it a great experience.

1. Be prepared to wear out your shoe leather.
You may need to sign up with several local rental agencies and keep a hawk eye out online until you find the one – and get accepted. Before signing the tenancy agreement ask yourself: is it in good condition? Will it be cold in the winter? Is it secure? Tip: Find out if you are expected to mow that football field-sized lawn out the back? Can you park off road? How far is the bus stop/supermarket/pub?

2. You need squillions of $$$$ up front.
If you’re living on the bones of your credit card limit, it can be difficult to get the money together for your first rental. You’ll usually need to pay up front for up to six weeks’ rent in advance as bond, PLUS the first two weeks accommodation, PLUS two weeks rent as a letting fee if you go through a real estate agency. Tip: If you’re really lucky, your landlord may let you pay some of this off over time. In some cases you may have to borrow the money to get your foot in the door.

3. You’ll need to sell yourself.
Sometimes hundreds of people attend viewings. Get yourself to the front of that queue by looking clean, tidy and professional; that means having all the necessary detail in the application and having a good attitude (which includes, for example not letting kids run amok). Tip: Make sure your car is spotless inside and out. Landlords and agents often take a peek to avoid letting to messy people.

4. You pets can cause you trouble.
Many more rentals are available to people without pets. We know that Charlie’s the best behaved dog ever. But for some landlords, all they can see is damage caused by pets. Pets in rental properties can destroy curtains, urinate on or rip up the carpet, scratch doors and walls and so on. In some states, landlords can charge a ‘pet bond’ – check out your rights if this is the case for you.

5. You need to keep your credit record clean.
Landlords often want to check potential tenants’ credit records. Guess what? If you’ve done a runner from rent or bills in the past the chances are you won’t get a look-in on the perfect house you’ve just found. Check your credit file to see if there are any blemishes (you can check your credit score right here with Credit Simple). Pay off outstanding debt to clean up your record. Tip: You might need a guarantor if your credit record is a little blemished.

Finally, happy house hunting.

The post Top tips for new renters: Eight things to know before you apply appeared first on Credit Simple.