Having a good credit rating is one of the most important aspects of having good overall financial health. With a good credit rating a consumer will almost always qualify for low interest rates on credit cards and loans. With a bad credit score, a consumer will have a very tough time obtaining loans, and those [...]
Free Credit Check
If you are currently shopping for a home loan, an car loan, a personal loan or a new credit card, or if you’re planning on doing so in the near future, it may be essential for you to obtain a free credit check.
Why should I get a free credit check?
If you’ve applied for a loan and are just waiting to hear back from the bank, and you have no idea what they’re going to say, that’s a very bad position to be in. The absolute worst time to hear about what rough shape your credit is in is on the day you were expecting approval. You don’t want to be blind to your bad credit until the very last minute, when a loan officer turns you down for a loan you desperately need. You need to find out ahead of time with a free credit check. When you get a credit check, you will be aware of all the positives and negatives before you start shopping for a loan. You will know what kind of borrower you are before the bank does. Then you can make the right decisions about what kind of loan to get, where to get it, or maybe even to hold off on the loan until you’re in a better position.
What’s in my credit report?
Your credit report is a list of all blemishes on your credit record for the past five to seven years. It will include details of all bankruptcies, late payments, defaulted accounts, judgments and any other factor that negatively impacts your credit. Bankruptcies stay on your report for seven years while the other black marks will only stay for five. Unlike many other countries, Australia has more strict privacy guidelines regarding credit. Current accounts, past accounts paid in good standing, and history past seven years do not appear in credit reports here. Now that you know what can be shown in your credit report, it should be obvious that getting a credit check is a great way to see exactly what, if any, negative factors appear on your credit report.
Who sees my credit report?
While consumers are entitled to a free credit check, others must pay a fee to obtain one from a credit reporting agency or credit check company. All manner of lenders, such as mortgage brokers, auto financing agencies, credit card companies and banks request credit reports in order to determine a prospective borrower’s credit worthiness. Current employers evaluating you for a promotion and prospective employers during the job interview process may also examine your credit. Bad credit like bankruptcies and unpaid debt with defaulted accounts can keep you from getting a loan, cause you to get a loan with higher fees and interest rates, and can harm your employment prospects.
What if my credit check comes back with bad credit?
Bad credit can ruin your chances of getting a good loan, or any loan at all. If your credit rating is bad, you’ll probably want to know what you can do to make it better. Unfortunately, since Australian credit reports only reflect negative factors, it’s really not easy or even possible to “repair” your credit. Since current accounts in good standing are not reflected in your credit report, you can’t “fix” or mediate your bad credit. You will just have to wait the five to seven years for these blemishes to go off your record, or accept a loan with less than desirable rates and higher fees. This is where your credit check comes in handy. It will show you what your credit health looks like right now and it will help you make the right decisions about your credit now and in the future.
