Credit Rating

[PommiePattons]

Hi all,

 

just been thinking about how best to build my credit rating.

Let me explain, the plan is rent for our first year and by then we would have sold our house in the uk and be in a position to get a mortgage.

We are looking to buy a couple of cars when we come over, is it worth having one on a bit of finance that we pay off within the year just to have some credit history?

 

any advice welcome

 

Anthony

[Keith & Linda]

Hi all,

 

just been thinking about how best to build my credit rating.

Let me explain, the plan is rent for our first year and by then we would have sold our house in the uk and be in a position to get a mortgage.

We are looking to buy a couple of cars when we come over, is it worth having one on a bit of finance that we pay off within the year just to have some credit history?

 

any advice welcome

 

Anthony

 

Just about normal living will get your credit rating going, phones, electric bills, bank accounts and cards. Look at getting some store cards like myer, and david jones, you don't have to really buy anything major just some stuff you need, pay it off in the next day or so. So no real need to get a car on credit that's too expensive. Your mortgage lender will be more interested in your earnings and employment status rather than your credit history (provided you have not got a bad one), you will need 20% deposit in most cases though so ensure you keep that figure in mind. We got a mortgage in less than 2 weeks when we arrived, but that was 14 yrs ago.

Good luck and happy life.

Keith

[NicF]

I believe you don't build up a credit rating here by having lots of different credit like you do in the UK. Rather you start with a good rating and it drops if you fail to pay bills and things. I think taking out too much credit can also reduce your credit rating, but I'm not completely sure about that.

[Tamara (Homes Down Under)]

There are some changes coming in the near future which will result in your credit rating getting black marks for late payment so it's important to set things up to pay on time.

There are some very good points above. Be careful with credit card limits as this reduces what you can borrow for a home.

I know that fixed line telephones aren't very popular but strange things like having a landline and paying it on time do count with your rating.

 

We changed mortgage lenders a year ago and were surprised by what the new lender took into consideration. There are mortgage brokers who will do all the leg work for you and get you the best interest rate and some of them are on this site. They have loads of advice about credit ratings.

 

Tamara

[PommiePattons]

Thanks for the replies very helpful

[Guest Claire-n-tel]

It's worth considering using a mortgage broker, i think each back you go to enquire about their mortgage shows up as a mark on you credit history ?

[NeilW]

Claire is spot on. Every time a credit check is done on your file, it is seen as a negative by banks. If you shop around and have 6 checks done, then you may be declined as the banks may believe you have been declined 6 times elsewhere (even if you are just shopping around). It is worth noting that some banks do not using credit scoring when assessing your loan.

Some banks will also look at newly employed people, particularly if you are continuing in the same employment as your role in the UK. Without going into too much detail, each bank have their own niches here, whether it be for first home buyers, non residents or those looking outside of Adelaide CBD.