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Buyers oblivious to bad credit consequences

By webmaster

A large number of aspiring property buyers remain unaware of the damage a bad debt history can do to their home loan prospects, according to broking group Mortgage Choice.

Franchise owners of the broking group said they continue to meet people planning to buy property with no idea that their credit file could see their home loan application declined.

“There is still a lack of knowledge about the existence of individual credit files and that one or two debt-related mistakes, such as a missed or late bill payment, are often enough reason for someone to be denied a home loan,” Mortgage Choice spokesperson Kristy Sheppard said.

Ms Sheppard said many aspiring property buyers were unaware certain aspects of their debt history, including bill defaults and applications for loans and credit cards, are on file and made available to lenders and other credit providers.

“Younger borrowers are especially likely to be oblivious to the importance of keeping their credit file clean. Defaults and credit applications are usually displayed loud and clear to lenders researching a potential customer’s suitability for and ability to repay a home loan.

“Be aware that if you have been active in applying for credit within the last five years and/or have not met deadlines with bill or other debt payments in that time, you have a credit file. Some records are kept on file for seven years.”

Buyers oblivious to bad credit consequences
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