If you’re looking at taking out a substantial home loan then it can be expected that your credit history is a determining factor for whether or not your application will be accepted.

If you know you have a poor credit history, then you can definitely take steps to improving it. However, if you’re unsure there is no harm in checking it out for yourself. At Smartline Rockingham, we can help you with navigating through credit history issues and find a loan that’s right for you.

When a bank runs a credit check, they are trying to figure out what type of customer you will be. Have you been able to make consistent repayments in the past? Are you always on time with repayments? These things will greatly influence their decision. Here are just three of the ways your credit history could affect your home loan application

• The better your credit history, the more options that are available to you. From split loans to flexible repayments, these things will make a huge difference to your property experience in the long run. In general, the more trustworthy the bank believes you to be the better the outcome.
• If you have an average credit history, for example if you have made repayments on your credit card sporadically over the years or you missed a few payments then you may have a higher chance of being turned down by some lenders. We’ll help you find the right lender for your needs.
• No credit history at all can also be an issue. Showing that you are able to pay back credit cards or other loans on time gives you a better chance of having your application approved.

It’s important to keep in mind that there are multiple determining factors when it comes to loan approval.

Things like credit history, the deposit amount, proven savings and employment history. So, even if you don’t think you have a good enough credit history you can always improve it by changing your spending habits and making more steady and consistent repayments.

Before you take any steps, though it is important to double check that everything on your credit file is correct, you don’t want to not be getting your loan approved for a credit card debt that isn’t yours!

Speak to us today if you have any concerns about applying for a loan.