Credit enquiries

[Munchkin]

I know the previous 6 months is important in regard to how many credit enquiries you may have had, but how important is the previous 12 months?

If my last 6 months was ok, but the 6 months prior to that had several, how much would that hinder my chances of an approval?

(I know there is more to getting a loan approved than just this factor, but this is just the one specific I am currently looking for more information about)

 

[Coconutwheels]

I know the previous 6 months is important in regard to how many credit enquiries you may have had, but how important is the previous 12 months?

If my last 6 months was ok, but the 6 months prior to that had several, how much would that hinder my chances of an approval?

(I know there is more to getting a loan approved than just this factor, but this is just the one specific I am currently looking for more information about)

I'd had 19 in the last 18months, after some help from a good broker I'm about to settle on my third loan since my initial problems that arose from that many hits.

 

[Shahin_Afarin]

Look it all depends on the strength of the application. If the last 6 months look good then that is definitely a great sign. Depending on the application you may need to consider a lender that doesn't credit score like Mac. You dont haven any defaults do you?

 

[Munchkin]

No, no defaults at all

 

[Peter_Tersteeg]

How long is a piece of string?

It also depends heavily on how many enquiries there were, the amounts, how strong your affordability is, what does your overall asset position look like, what LVR is the deal?

If it's an 80% LVR, it's likely there's no problem. For a 95% LVR, it could be tricky. Unfortunately there's no manual on credit scoring and no guidelines. Brokers and bankers alike simply get a feel for it.

 

[Jamie M]

Like others have mentioned, there's a heap of other variables at play as well.

However, credit scoring can play a big part at high LVRs - particularly if you've had a lot of hits to the file.

We can often get around this issue by using a lender with an LMI DUA that doesn't credit score coupled with a decent explanation behind the amount of activity on the file.

Cheers

Jamie

 

[Munchkin]

How long is a piece of string?

It also depends heavily on how many enquiries there were, the amounts, how strong your affordability is, what does your overall asset position look like, what LVR is the deal?

If it's an 80% LVR, it's likely there's no problem. For a 95% LVR, it could be tricky. Unfortunately there's no manual on credit scoring and no guidelines. Brokers and bankers alike simply get a feel for it.

9 enquiries in 12 months (2 for between 250-300k, rest 5-40k), 80% LVR. Loan would be <250k

does it look like it shouldn't be too painful difficult?

We had some trouble a few months ago but some time has obviously passed and I was also able to get several enquiries removed. I think there is probably one or two more I could get removed if I really tried but my bank fighting energy is all but drained. I could wait another 3 months and then we would be down to 6 in 12 months bit we'd like to get a move on with it if it's likely to be possible without too much difficulty

 

[Mick C]

Just choose the right lender and have a good broker that can "migrate" the risk and outline the positives of the application.

If you dont have any defaults then how the file is presented can get you over the line + choosing the right lender ( With DUA etc..)

 

[Mick C]

9 enquiries in 12 months (2 for between 250-300k, rest 5-40k), 80% LVR. Loan would be <250k

does it look like it shouldn't be too painful difficult?

We had some trouble a few months ago but some time has obviously passed and I was also able to get several enquiries removed. I think there is probably one or two more I could get removed if I really tried but my bank fighting energy is all but drained. I could wait another 3 months and then we would be down to 6 in 12 months bit we'd like to get a move on with it if it's likely to be possible without too much difficulty

9 in 12 month is fine...You may want to avoid CBA and some of the majors lenders that credit score tho...

Get a broker to do a manual credit scoring and they should be able to tell you roughly your chance of approval with each lender.

 

[Qlds007]

As Michael mentioned pick your lender carefully as you want someone who will manual assess with the loan with an explanation rather than merely auto score it,

 

[Munchkin]

Thank you for the replies. I would like to find someone local to help me out as I prefer to discuss face to face, but the thought of dragging the kids out and trying to discuss this stuff is just too daunting right now lol. I have called one local broker so far and didn't even return my call.

 

[Peter_Tersteeg]

Thank you for the replies. I would like to find someone local to help me out as I prefer to discuss face to face, but the thought of dragging the kids out and trying to discuss this stuff is just too daunting right now lol. I have called one local broker so far and didn't even return my call.

Hate to say it, but it's right on the edge of holiday season. I'm in Ballarat a lot (grew up there), but I'm about to go on holidays myself. If you can wait until late January I can do a face to face on a weekend...

 

[Munchkin]

yeah I doubt I would even.be organised enough until after Christmas now anyway. If you were already going to be in the area, that would be great. Weekends are perfect as it is the only time my husband is around

 

[Jamie M]

Thank you for the replies. I would like to find someone local to help me out as I prefer to discuss face to face, but the thought of dragging the kids out and trying to discuss this stuff is just too daunting right now lol. I have called one local broker so far and didn't even return my call.

I'd take Pete up on his offer - he knows his stuff and will place it with a lender that gives you the best chance of approval.

Cheers

Jamie

 

[Peter_Tersteeg]

yeah I doubt I would even.be organised enough until after Christmas now anyway. If you were already going to be in the area, that would be great. Weekends are perfect as it is the only time my husband is around

Send me a reminder in January; to be honest with myself I'll probably forget after 3 weeks of holidays

You might also consider contacting Aaron_C. I've got no idea of his availability to Ballarat, but he's also based in Melbourne.

Jamie (post above) is also a great broker, but is based in the ACT. He works very effectively on the phone.