SBS language | How Will My Credit Report Affect My Chances Of Getting A Home Loan?

May PERAan ‘is SBS Filipino’s podcast series featuring financial experts looking to answer the most common questions about money and finance.

“Even if you have the best income and have a lot of savings, there is still this fear of getting [rejected] for a home loan, ”shares financing broker Maria Papa.

She shares that one thing potential home buyers tend to overlook is their credit report.

Strong points

  • There are three credit rating agencies in Australia.
  • Your credit score is included in your credit report.
  • You can request removal of late payments in the report for humanitarian reasons.

Maria shares the following things you need to remember when it comes to your credit report:

1. There are three credit bureaus in Australia.

These are namely Ilion, Experian and Equifax. You can request your free credit report from any of the three.

“They keep tabs on your credit history – whether you take a personal loan, credit card, apply for utilities … these become historical entries. Every time you apply for a loan from a bank , this is a credit application and will be included in your report.

“If your credit report has 20 inquiries in five years, that’s too much movement.”

2. Your credit score is included in your credit report.

Your credit score is a reflection of what is on your credit report.

“When you are late to pay your utilities or your credit card, it shows in your score [between 0-1000 or 0-1200]. You get a number “1” when you are late for 29 days, a “2” when you are late for 59 days. Every time there is a late payment, your credit score goes down. The bank will see this on your report. “

According to Maria, the 4 big banks [Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group, and National Australia Bank] are very particular when it comes to your credit report.

A credit score of 0 to 600 is bad, 600 to 800 is average and above 800 is considered very good.

“You are more likely to get a loan if you fall between average and very good,” says Maria.

3. You can request removal of overdue payments in the report for humanitarian reasons.

“There could be a very good reason for the late payments,” Maria shares, adding: “Especially if you’ve been fired or put on leave due to the pandemic. If so, you can ask your bank remove late payments from your report for compassionate reasons. “


Disclaimer: This article is for general information only. For specific financial advice, you should consider seeking independent legal, financial, tax, or other advice to verify how the information here relates to your unique situation.

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