Credit tips- what’s your best?

Discussion in 'Property Finance' started by Michelle Evans, 6th Feb, 2019.

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  1. Michelle Evans

    Michelle Evans Well-Known Member

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    Location:
    Bacchus Marsh
    So, with things tightening up, I thought I’d put a call out to the group about tips to help get the loan and avoid being knocked back.

    I have one- don’t pay off debt with debt (perceived or not).

    I had a Flexi loan and credit card with one institution, and normal banking with another. They couldn’t explain why I could transfer funds to the loan, and it would clear the next business day, but for the credit card, it would take 3 days! So it was quicker to pay the loan and instantly pay the credit card...

    Turns out, Aussie doesn’t like that and wouldn’t proceed with refinancing our ppr! Our big bank did it without drama though.

    I want to buy again in 12 months though, so what to avoid between now and then to have a squeaky clean credit record.
     
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  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    My biggest tip is that you've got a mixed-purpose loan now. :) I hope it's not an investment loan or you might have stuffed up your tax deductions.
     
    chylld likes this.
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Get advice relevant to your specific circumstances from a good broker. There's quite a few of us on this forum.

    If that's the explanation you got from Aussie for having a loan declined, you need to be speaking with a broker that actually knows what they're doing.
     
  4. Michelle Evans

    Michelle Evans Well-Known Member

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    Location:
    Bacchus Marsh
    We no longer have any loans other than our mortgage, one credit card that we pay off each month and one store card. We sorted all that out 6 months ago now. We have a mortgage of $430k and home was last valued at $680k (further growth since- Bacchus Marsh doesn’t seem to be having any issues there- slowed a little from its original growth pace, but is still growing). We are actually working on saving a deposit for an investment in Melton (around $350k, rent would be around $330/ $340pw).

    What I want to make sure of is that next time we go for something, I don’t want any little things that can be used as an excuse.
     
  5. miximitosis

    miximitosis Well-Known Member

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    Location:
    QLD
    My tips are:

    • Save as much as possible
    • Increase income where possible
    • Watch living expenses for at least the 3 months leading up to applying (banks have really cracked down on this)
    • Don't take out any further debt
    • Speak to a good broker
     
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  6. robboat

    robboat Well-Known Member

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    Location:
    Sunny Queensland
    +1 Like @miximitosis said.....
    "Prove to the lender you really don't need the loan" !!!......;):):)
     
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  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The best thing people can do to promote success is to limit their spending. I'm about to launch an app that automatically looks at your spending, categorises it and lets you know where your money is going.

    The biggest problem with trying to save money is the little stuff that gets into our daily habits. I reviewed a friends saving statement recently to discover that they were spending over $3k per month across a couple of coffee shops! Admittedly it was during school holidays so it wasn't just the adults, but damn that's a lot of coffee and cake.
     
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  8. TAJ

    TAJ Well-Known Member

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    They mustn't have slept for the whole holiday period!
     
  9. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You will certainly benefit from using a good broker - have you heard of debt recycling? Please don't use your savings to put down a deposit when the time comes, there's much more tax-effective methods of buying an INV property that will put money in your pocket every year compared to paying cash directly.
     
    Michelle Evans likes this.
  10. datto

    datto Well-Known Member

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    Lie, steal, cheat.

    What? who said that? They're not tips!

    Dang voices I keep hearing.
     
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