If you put in a loan application before checking your important credit files, the application may be rejected. This is a waste of your time, right? And, more importantly, it will lead to unnecessary enquiry listings on your credit file. Which will lower your credit score.
There are two credit files in Australia in your name that you need to be on top of before putting in a loan application. The first is an Equifax (formerly, Veda) credit file. This is the credit file that lenders always look at when they are working out whether to give you credit or a service.
The second is a Dun & Bradstreet credit file. Often lenders will also check this credit file to see if it is clear of overdue accounts and court actions.
These credit files don’t always have the same information on them, so it’s vital to check both before putting in a loan application.
For example, there may be a default listing on the Equifax file, and a serious credit infringement for the same debt on the Dun & Bradstreet file. Exactly the scenario we encountered with a client last week.
Or you may have the same default or court action on each file. Or there may be a problem on one file but not on the other. That’s why it’s vital to access both credit files to understand what’s going on, and what can be done to fix it.
Both credit files will have to be clear of black marks before you can be certain that you will be approved for finance. Particularly if you are applying for the best interest rate loan.
After assessing credit files for nine years, we understand that the secret to finance approvals is understanding both credit files, and keeping them in tip top shape.
Knowledge is power, right? So before spending time preparing a loan application, do these checks first.
To help you with this, we offer a nifty service where for $150, we order copies of both credit files and assess them, so you know everything that is stopping you being approved.
You don’t need to despair if we discover a default or court action on your credit files. There is help available to remove these incorrect listings. And we offer $100 off our full credit repair service fees, if you have used our $150 service. Great deal, right?
Once your file is cleared of black marks your credit score will climb higher, making it easier for you to be approved for low interest finance.
Therefore, the most important step you can take to ensure your financial freedom is to make sure you understand your credit files before putting in a loan application.
You can sign up here: www.creditfileexperts.com.au