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3 reasons to check your credit history

Justin

If you’ve ever applied for a home loan or a credit card, you’ll have a credit score – but a lot of people aren’t actually aware of this, or at least don’t keep track of what their report says. In fact, according to credit bureau Veda, 78 per cent of Australians have never checked their credit histories.

So, why should you break this trend? Keeping a clean credit rating could make the difference between getting what you want – or heading back to the drawing board. With that in mind, here are three reasons why you should stay up to date with what’s on your credit report. 

1. Helps you get a home loan 

Lenders of all stripes generally request a copy of your credit report when assessing your application. This document is a record of your financial activity, listing all the occasions when you applied for credit, as well as details of your repayments or defaults. Particularly when you’re taking on a bigger commitment like a home loan, it’s a track record that reflects your trustworthiness as a borrower.

By checking your credit report, you can catch up on debt repayments you might have missed recently, which puts you in a good light with lenders. If you’re wondering what else you can do to improve your chances of being accepted for a home loan, your mortgage broker can help.

2. Sets good habits

You’ll normally need to take a small step back before taking four strides forward – especially when you’re planning for the future! You might need to pay down some of your smaller debts before making the exciting leap to property investment, or increase your mortgage repayments. Your credit history can reveal your strengths and weakness, as well as how much debt you’re juggling. This sets the scene for good habits further down the line.

3. Picks out mistakes

By checking your credit history, you’ll be able to identity any incorrect or misleading entries and have them fixed as soon as possible – for instance, if a phone or internet company unfairly lists an overdue account on your record, you can contact them and ask for an explanation, as well as have the mistake rectified. 

As you can see, there are plenty of reasons to stay up to date with your credit report. If you have any questions about how you can purchase your dream home in the Whitsunday Shire, or improve your financial standing, have a discussion with your mortgage broker.