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6 Little Known Things affecting your Applciation for Credit

6 Little Known Things affecting your Applciation for Credit

There are many different things that affect your chances of getting credit and its not just your credit report! Most of these are well known while others are not. Factors such as affordability, defaults, judgements and insolvency are the main factors but there are other lesser known factors that banks take into account.

Here are six other factors that may prevent your credit application:

  • The frequency of credit applications
    • Applying for a lot of credit over a relatively short period of time tends to indicate financial stress or imprudence.
  • The type of credit applied for
    • Banks tend to regard applications with non-major banks negatively. Payday loans, renting or leasing home appliances and interest free deals fall into this category.
  • Debts repaid
    • If you have had a loan in the past, banks like to see that it was paid off. Rolling loans into new loans and frequently accessing home equity is not well regarded.
  • The suburb you live in
    • Banks have good data on the riskiness of individuals based on their suburbs. Living in a good working class suburb with high levels of home ownership may be better than a prestigious address where big mortgages put people under large financial stress.
  • Changing jobs frequently
    • Banks value stability. Staying with the same employer is a good indicator of stability.
  • Moving frequently
    • Not being settled makes banks nervous. People well rooted in a community tend to have good support networks and are therefore less risky.

From the 12th of March 2014 information such as late payments on active accounts, even open and closed accounts can also appear on your credit file.  This information may not significantly impact your chances of being approved for credit, however it would depend on how late it the payment was made and if that was followed by making your payments on time. Should there be a pattern late payments this could be an indication that you are in financial distress and negatively impact your credit report.

Want to know more?

Discover what information is stored on your credit report file by visiting our credit file explained page, learn about credit repair, or request your free credit history report.

If you find yourself rejected for credit, struggling with personal loans, credit cards and other unsecured debts, give our team a call for free consultation. We have loan-free solutions that will help you pay off debt faster. There are some debt solutions will negatively affect your credit history for a limited time, while others leave a permanent notation on the National Personal Insolvency Index (NPII). Our Personal Insolvency Specialists will walk you through your options, and any relevant consequences. We’ll provide you with the information you need to make an educated decision regarding which solution meets your financial situation and future goals.  It takes less than 10 minutes for us to design a plan that could see you debt free in three to five years. There is no pressure or obligation to take up debt management, and the personal budget we design for you is yours to keep.

If you’re struggling with more than $8,000 of unsecured debt, you may be eligible for debt relief. Discover how to stop debt collector calls, freeze interest and fees, reduce payments and write off what you cannot afford. Start now with a free savings estimate.

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