Australians 'should consider credit report when applying to borrow'

Author: Sam Gooch

Author: Sam Gooch

Consumers are being advised to endeavour to find out about the information held on their credit report can affect their ability to access loans and other borrowing products.

Those looking to apply for Aussie credit should consider the criteria used by lenders when assessing applications to borrow.

So points out Alex Tilbury in a News Limited article, who states many people are unaware about how financial services firms use the information contained on their credit reports when making decisions about approving requests for credit cards and other monetary products.

Consumers lacking knowledge about such an Australian banking process may want to note comments of Joel Palmer, financial planner at Palmer Portfolios, who points out that every time they apply for a financial product or a payment is defaulted on this information will be recorded on a database and placed on their credit file.

However, he claims that those consumers who have successfully taken steps to manage their money over a stretch of time should find they have a positive credit rating.

As an example, consumers are advised that if they have never missed a demand for payment on a home loan and have consistently been able to keep their credit card debts under control they could find that "the major benefit for you is that banks will then be falling over themselves to lend you money".

"If Australia had a positive credit reporting system, you would then show up on the database as an extremely good credit risk," Mr Palmer adds.

Australians keen on taking out a copy of their credit file to see where their financial situation lies may want to note the publication points out that such a report can be obtained from a credit reporting bureau for free.

On the other end of the scale, people who choose to apply for a high number of products over a short space of time could discover that a black mark is placed against their report and "find it next to impossible to obtain new finance".

Such comments as come MWE Consulting managing director Mike Ebstein recently noted that Australia is increasingly becoming a "cashless society" as credit and debit cards grow in popularity.About the Author:

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