Credit file
- Thread starter cimbom
- Start date
Hello,
I just have two questions about credit files.
1) How long does it for a negative hit (i.e. rejection) on your file to fall off or at least not matter as much for lenders?
2) Is it possible to have a negative hit removed for any reason?
Thanks
1) 5 years generally.
2) yes in some instances.
In Oz we only have 3 forms of report per se
No report at all
Neutral
Adverse ( defaults judgements etc )
A further convolution of that is activityon the file which is probably what you are concerned about.
A concern at > 80% but usually not hassle for non LMI deals unless really messy
t
arolf
No report at all
Neutral
Adverse ( defaults judgements etc )
A further convolution of that is activityon the file which is probably what you are concerned about.
A concern at > 80% but usually not hassle for non LMI deals unless really messy
t
arolf
Thanks for your replies. I'm more concerned about future small loan applications as I applied for a debt consolidation loan but got rejected due to credit file activity (mortgage approval and another pre-approval which I didn't proceed with - these were in space of 2-3 months). Not looking to buy our next property for ~3 years.
You can use the Veda Starter plan to check out your VedaScore if you like. Expensive however if you are worried about it you can see where you stand.
550 is average, below 500 is bad, over 600 is good.
Your enquiry history doesn't do any favours, but it's not the end of the world either. There's a good chance that you'll run into problems with credit scoring. There are however lenders who don't credit score at all. They'd want to know what's happened, but if the story makes sense they'll be okay with it.
There's also lenders whose scoring systems are more understanding, or will at least mitigate it. You had several pre-approvals and a purchase. The simple solution may be to use the same lender as they have an understanding of what's happened so far.
It is a delicate scenario and will depend on quite a few variables. As always the best advice is to have a detailed discussion with your broker about these issues.
There's also lenders whose scoring systems are more understanding, or will at least mitigate it. You had several pre-approvals and a purchase. The simple solution may be to use the same lender as they have an understanding of what's happened so far.
It is a delicate scenario and will depend on quite a few variables. As always the best advice is to have a detailed discussion with your broker about these issues.
You can possibly get some of these enquiries combined if they were the same application and were for multiple enquiries from the same lender. E.g. if ABC bank did three enquiries and XYZ LMI did two enquiries then you can combine this to be one for each of ABC and XYZ.
A subscriber of Veda Advantage can do this for you if they know what they are doing. Call the mortgage broker that you used and hopefully they can do this for you.
FYI Veda is upgrading their system soon so that is will automatically combine many of these enquiries to avoid people being penalised.
