The young and the restless

The survey of 1500 credit reports found that a significant proportion of people with one or more black marks to their name came from Generation X, and more specifically, those aged between 26 to 32 years.

Black marks commonly arise from overdue accounts, court actions, multiple identities and too many credit enquires (such as credit card or other loan applications), and can bring down your score for 5-7 years.

1 in 10 Australians have a black mark. Those that are seeking finance in the year ahead need to consider how a poor credit report will adversely impact both their ability to secure a loan, and the terms that the loan will be offered. That is, whilst its highly unlikely that someone with a black mark will be approved, those lucky enough to secure a loan approval are slugged with higher interest rates, as they are deemed riskier.

While I understand that saving, serviceability and interest rates are top of mind when it comes to purchasing property and considering a loan, still I am amazed at how few people check their credit report at the same time!

Too many people don’t think to look at their credit report until they get declined for a loan. Australians should be in the habit of being aware of what is on their credit reports, and certainly prior to applying for a loan. If they do, they would be able to deal with any black marks before applying, avoiding any surprises at the bank or mortgage broker, and saving time and money in the loan approval process.

If you don’t know what is on your credit report, know that you are not alone - approximately four out of five Australians have no idea what is on their credit report.

The good news is that your credit report is assessable – for instance, credit reporting agencies as well as some credit restoration companies (like us at Credit Repair Australia) will provide your credit report to you for free.

So, if you are considering purchasing your dream home, or investment apartment, or first car… whatever it is that requires a mortgage or loan, do some homework first on your credit report to ensure that it is in shape.