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If you want to obtain a loan, it’s important to separate fact from fiction when it comes to your credit history. A large part of our job here at Optometry Finance Australia is to guide and help you understand the importance of maintaining a ‘clean’ credit file, and to find ways to help you gain the financial assistance you need to obtain car finance or other loans.
If you are wanting to secure a car loan, for example, and are concerned about your credit history or you know or suspect you have a ‘black mark’ against your name, speak to one of our team today. For a free copy of your credit report and follow the instructions that will guide you to obtaining your full report.
Car finance and what you need to know about your credit report
Your credit report lasts for five years and can be accessed by any company to whom you have applied for a loan. A “serious infringement” will remain on your credit report for seven years. However, if the debt has been paid this will revert to five years.
What gets logged and can impact negatively on my credit history?
- Defaulting on loan payments
- Late payments of bills
- Multiple loan applications (whether you take the loan out or not)
- Any of the above for a person for whom you co-sign
Individuals and families looking for a loan or car finance are often surprised to find that they have a poor credit rating, especially if they feel they have been financially responsible and never defaulted or made a late payment.
At Optometry Finance Australia our priority is helping you to secure the loans you need and, if necessary, getting you back on track if you do have a poor credit history. If you are seeking car finance or another type of loan, a poor credit history does not necessarily mean the end of the line.
We are accredited with a number of lenders that will consider applications from customers with credit impairment. For a personal service, contact our office on 1300 OPT FIN to find out how we can help you. Whether you are just looking for information or need us to guide you through the process to obtain the best loan for your situation, one of our team will be happy to help.
Fact versus fiction for credit history
1. Fact or fiction: the best way to compare loan fees and interest rates is to submit a loan application.
This is not true and can, in fact, be damaging to your credit file. Every time you submit an application for finance, whether you take out the loan or not, a notation is made on your credit file. Lenders consider six or more loan applications in any one year to be excessive. The best way to avoid this is to ensure that you do your research on loan fees and interest rates before you complete an application. This information is readily available and will give you everything you need to compare lenders.
It is also important to ensure that all of your details are completed accurately on any loan application. Incorrect name spellings or missed digits in your drivers licence number, for example, can result in multiple credit files being created in your name.
2. Fact or fiction: I have a good credit history because I pay all my loans on time
This is a great start but it is not the entire picture. Defaulting on loans or failing to pay bills on time (including utility bills) can impact negatively on your credit history and can directly affect applications for car finance or other loans.
3. Fact or fiction: my credit card limit has been raised so I must be able to afford it
Lenders make money from interest payments on outstanding loans and on fees for credit cards. They are not out to ‘get you’ but at the same time they are a business and businesses have to make money. Raising your limit is often for their benefit, not yours. With a higher limit you are more likely to spend, and the more you spend the more difficult it may be to pay it all off on time.
4. Fact or fiction: I always pay off my entire credit card bill each month so I will have a good credit history
Some lenders look at how close to your limit you spend and, regardless of whether you pay it all off each month or not, reaching your maximum limit every month can be risky.
Can I ‘erase’ a poor credit history and secure the car finance I need?
Your credit history remains on your file for five years (or seven if it is a serious infringement and has not been paid off). However, proof of good conduct after bad will go a long way to proving to potential lenders that you have improved your ability to meet your loan repayment responsibilities.
You can also consider contacting your credit provider (or utility or telecommunications provider, as the case may be) to negotiate paying off the debt.
You may also be able to consolidate all your debts into one in order to pay off your debts faster.
The laws in Australia require that a lender must update the listing on your credit file as soon as is practicable, once the debt has been paid.
There are also companies in Australia that can repair an individual’s credit file, for a fee.
At Optometry Finance Australia we are very careful to ensure that we have a good overview of your credit history before making a loan application on your behalf. It is part of our responsibility to you to ensure that we help you get the results you need. Speak to one of our team today to find out how we can help you.
Whether you are looking for car finance or other loans, we will walk you through the process to give you the best chance of success. At Optometry Finance Australia we have lenders available to you who will still consider your circumstances even if you do have a poor credit history.
Contact our office on 1300 678 346.
Interested in buying your first home but don’t know where to start? Check out our simple tips to help First Home Buyers own their own homes. Then read on to find out how Optometry Finance Australia will help make the process simple and as pain free as possible.
I’m a first home buyer. What do I need to know?
Did you know that you need to have a savings plan with at least 3-months history in order to be eligible for a Home Loan?
Did you know that First Home Buyers need to have at least 3-month savings history to qualify for a loan? Lenders look for evidence that you can put money aside each month to repay your loan. (The amount of deposit varies dependant on your individual circumstances)
Did you know that you need more than just your deposit? Allow for expenses like:
- Settlement Agent Costs
- Moving costs
- Connection costs for electricity, gas, telephone
Quick fix: Set up a savings account today and tick this off your list. Use our saving calculator to help set up your savings plan.
- Did you know that if you are a First Home Buyer and the property you wish to purchase is newly built and has never been lived in then you are eligible for a $10,000 First Home Owners Grant? (If the property has been lived in the grant is currently $3,000.)
- Did you know that with a First Home Owners Grant you do not need to pay stamp duty if the purchase price is below $430,000? That could be a saving of up to $14,850.
- Did you know that if you are concerned about your credit file, you can get help by contacting our office on 1300 OPT FIN? We can provide you with an obligation and cost free credit check before you start the process of applying for your loan.
Our reputation for looking after the best interests of our clients has made us a popular choice with First Home Buyers. The process can feel complicated but with the right guidance and support you could be in your first home sooner than you think.
What to do and why Optometry Finance Australia is the right choice
For some people the complexity of buying a first home is enough to convince themselves that living with their parents isn’t so bad after all. But, with the right people working for you, the process doesn’t need to be complicated or stressful. You can get out of home and into your own place!
Optometry Finance Australia 5 steps to buying your first home:
1. We provide you with a checklist that clearly outlines everything you need to bring to your first meeting.
- Supplying everything on the checklist will help us to get the ball rolling quickly and smoothly for you
2. We conduct a Needs Analysis at a time that suits you in the comfort of your own home.
- The Needs Analysis allows us to find out exactly what you are looking for. Each First Home Buyer has different priorities and needs, and the Needs Analysis enables us to find out how we can best serve your interests with the 31 providers we have available
3. Using all the information we have collected, we conduct a Preliminary Credit Assessment to find a selection of suitable offers from the 31 providers we use.
- We will present this selection to you and ensure that you are kept fully informed so that you can make the right choice to meet your needs
4. We will put together your Home Loan Application with the Lender of your choice, submit the Application and keep you fully informed and updated throughout the process
- In our experience, knowing what is going on is vital to a stress free process.
5. We help you go through and sign all the mortgage documents once they have been approved.
- These documents can be lengthy and by going through these with you page-by-page, we can ensure that you understand what you are signing
Optometry Finance Australia look after first home buyers in all areas of the home loan process. Whether you are looking for land packages, or house and land packages we will make it easy. If you are looking for a land package as an investment speak to one of our team on 1300 OPT FIN for some financial guidance.
Optometry Finance Australia: the one-stop-shop for first home buyers
At Optometry Finance Australia we not only provide you with access to 31 different lenders, making sure you have the best options for loans available to you, but we can put you in touch with settlement agents and buyers agents who are experienced in assisting first home buyers. Our recommended buyers agents can also help you find the right land package or house and land package for the requirements you have. With their expertise in localities around Australia, they can make it easy for you to find the best house and land package to suit your lifestyle needs.
Are you ready to make the move?
Moving homes can be stressful and complicated, but when handled with the sensitivity, professionalism and genuine care for the best result that give to all of our clients, it can also be extremely exciting.
If you are ready to make the move, or you think it is time you found out a bit more, speak to one of our friendly team members today and let us help get you into your first home. Call 1300 OPT FIN and tell us you are a First Home Buyer.
Car finance: timing is everything
Should I get preapproved car finance before I go to the car yard?
Many customers fear that getting preapproved car finance before they find the car they want will limit their options and restrict their choice. The reality couldn’t be more different.
We recommend you don’t set foot in the car yard, or start to look at what cars are available from private sellers until you have pre-approved your car loan. And here’s why.
How preapproved car finance works
Car finance = power!
The skill of a good car salesman
After “Hi, how are you?” the first question most customers are asked when they enter the car yard is, “How much are you looking to spend?” To the customer, the figure they give is the figure they intend to spend. But to the salesman, the figure they hear is the figure that they will work up from to get you the car you want.
The conversation usually then turns to how you intend to use the car, who will be in it, what your hobbies are and other general questions about the things you enjoy in life as well as in your car. This gives the salesman an idea of the type of extras that you would like and would therefore likely be willing to pay “just a few hundred/thousand dollars more” for. The car salesman will start mentally going through the cars available that have that something extra he can present to you.
Before you know it, you are seeking car finance for a vehicle that is outside of your comfortable range. With a loan bigger than you intended you have to cut back on other areas in your life to ensure that you can pay it back. Something has to give. But with preapproved finance the picture is vastly different.
Power to the People!… with pre-approved finance
The customer with a preapproved car loan walks into the car yard with power. They know how much they can get and they know that this is a figure they are comfortable with.
When the salesman approaches he or she will go through the same routine. The customer will answer the same questions in the same way but the end result will be different.
Once the customer finds a car they like, one that may be just a bit above their approved limit, they can turn to the salesman with the simple line, “I like this one but I’m preapproved up to $x so you’ll have to do something about the price.”
You are no longer asking for a discount, you are expecting a discount. Control over the sale and the result has moved neatly into your hands.
Should you get pre-approved car finance before you go to the car yard?
Definitely. And remember, your car finance preapproval amount is not set in stone. If you need to increase it by a few thousand dollars this is (usually) easily done. Furthermore, you are not locked into any particular car yard. And can even buy privately if you want.
The other advantage in having a pre-approval, and letting the salesman (or private seller) know it, is that you are showing them that you are not just a “tyre-kicker”. You’re a serious buyer. Knowing that may make them just a little more prepared to negotiate on the price with you
Do you want control over the sale?
Use our car loan calculator to find out how much you could comfortably borrow. Then speak to one of our friendly team on 1300 OPT FIN to get your car finance approved and take control of both your sale and your result.