What’s Your Credit Score Rating & What to Do About it
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.
Some great information here from Karen Adams…
Did you know there are three crucial elements to gaining approval for your home loan application? However, I have found that most people only focus on the first two and leave the all-important third element to chance. By missing this key indicator, they risk being rejected by their lender. But it doesn’t need to be this way, because by understanding this hidden third element you can greatly increase your opportunity to gain finance.
So, what are the three keys to finance?
1. Affordability – Can you afford the property? This includes your deposit amount, whether you can save and manage money over time and will determine how much you need to borrow or the size of your loan.
2. Serviceability – Can you service the loan? Do you have enough income to meet your mortgage repayment obligations, as well as any other financial commitments you have including, credit cards, personal or car loans and credit services such as After-pay.
3. Credit Score Rating – What’s your credit history? This is literally the hidden rating of how you score on items such as loan repayments, credit inquiries, late payments or defaults and whether you pay your bills on time.
Things to Know About Your Credit Score
1. Your credit score is rated from a possible top level of 1200 points right down to a low of (-200) points.
2. Your score equates to these approximate rankings: a high green rating of 900 to 1200 points, a low green score of 600 to 899, an amber rating of 400 to 599 or a red rating of (-200) to 399.
3. The higher your score the more favourably your application is viewed; the big four banks aim for high green scores.
4. If you have a low green score or below you may miss out on the best loan and interest rate offers, lower fees and better conditions, and this will cost you money.
5. The key is to know your Credit Rating before you apply for your loan, because there are steps you can take to improve your score.
If you have any questions on your Credit Score Rating and what you can do about it, reach out to me today. #finance #mortgages #loans #mortgagespecialist #harkenfinance