Building a credit file

[s0805]

My partner and I have joint savings account in our names. She has started her career and earning decent income. her salary gets deposited to joint account and then gets transferred manually to offset linked to PPOR. PPOR, IP and all the utilities are in my name.

She had separate Saving account for while but we closed it due to monthly fees.....

It is very possible that we may have to buy our next PPOR in both of our names (due to serviceability).....

I am thinking that i should build credit history under her name which can show she is paying the utilities/bills etc...or it doesn't matter?

how do lenders look at the application for couple (buying in both their names)....do both have to have some listing in credit file or payslip information in her case should be fine.....

 

[D.T.]

If its in both names, they do all the checks on both people.

The notion of building up a credit file is a fallacy though.

 

[tobe]

the main thing is to have 5% of the property price in an account for at least 3 months. Either in joint or single names is fine.

 

[Peter_Tersteeg]

If you want a good credit file, pay your bills on time, don't apply for too much credit (one or two credit cards is enough for most people). Applying for a whole lot of bills in one persons name isn't going to improve their credit file over just one or two bills. It may not make any difference at all.

The difference between a normal credit file and a really good one is fairly academic in most cases. You definitely don't want a 'bad' credit file, but beyond that it's really not a big deal.

 

[s0805]

The difference between a normal credit file and a really good one is fairly academic in most cases. You definitely don't want a 'bad' credit file, but beyond that it's really not a big deal.

Peter, i forgot to mention that CC is in my name too, but she is additional
card holder on that....

I agree that we don't want bad credit file....but there is nothing in her name
apart from joint account....i guess less is good in this scenario? I guess
i can show her tax returns to lender anyway for her income...

 

[Peter_Tersteeg]

If she's got a mobile phone that isn't pre-paid, she's got a credit file.

Positive credit reporting does now exist in Australia, but it only came in a few months ago so it isn't truly implemented to it's potential. In the meantime it's best to assume that less is better for credit reports.