Did you know that you would be ineligible for certain careers if you have bad credit? Something as small as a $300 telco or energy default could prevent you from following your dream career path. Certain careers in banking, finance or insurance necessitate a clean credit report.
Looking to buy a home? Need a new car for a growing family? Simply want to consolidate all your debts into one easy monthly repayment?
Many of the best interest rate loans will be out of your reach if you have bad credit. If you have a default or court action, you could be paying more than double the standard rates for finance.
For example, John & Lisa wanted to buy a new home in Townsville for $575,000. They had a 10% deposit and both had great jobs that they had been at for more than 5 years. Their bank had conditionally approved her loan, but when the loan went to the mortgage insurer for approval she was suddenly rejected for the loan due to a $146 unpaid phone default that they knew nothing about.
Unfortunately, the bank had to decline the application and advised her that she would need to save another 10% deposit before they could approve the finance, leaving them 3.5 years away from being able to enter the property market.
Remember that a default or court action can seriously impede you in obtaining finance and can affect you for many years!
Lifestyle and Renting
Bad credit can also mean you can get knocked back for a rental property. Even if your income is above average, a bad credit score could mean that the real estate agent picks someone else’s application over yours. Wanted to rent that new home close to where your kids go to school? It could be an impossible dream with a bad credit rating.
Overall, 1 in 3 Australians have bad credit. The best thing you can do is protect your credit rating and avoid the pitfalls! Talk to us it you have any questions or a would like a complimentary credit report on 1300 861 143.