Sometimes, even with the help of a mortgage broker, looking for a home loan can be daunting. At Smartline Rockingham, we know that most people are too busy to know everything about how the credit industry works. We would like to tell you about six myths that many people believe about credit.

“If I Check My Credit Score, it Goes Down.”

While some credit checks can decrease your score, there are also ways to make what is known as a “soft enquiry” which doesn’t affect your credit score. It is a good idea to keep an eye on your credit through “soft enquiries” to make sure the information is accurate.

“I Only Have One Credit Score.”

Actually, there are many credit scores. It depends on which credit reporting agency your lender uses. One of the reasons a mortgage broker can be so helpful is that we know which credit reporting agencies most of our lenders use and can steer you to ones that use the agency which gives you the best score.

“Credit Repair Companies can Make All of my Defaults Disappear.”

A default must either be more than five years old or incorrect to be removed from a credit report. You can do this yourself by calling the provider who reported the default.

“I Don’t Need to Check My Credit Score.”

Even if you pay your bills on time, you should keep an eye on your credit score. This allows you to make sure your file is up to date and accurate. It also helps you detect identity theft sooner than if you don’t regularly check your score.

“I Don’t Have to Pay My Utility or Phone Bills on Time Because they Won’t Hurt my Credit.”

If a bill is more than 60 days overdue and worth more than $150, it is reported and lowers your credit score.

“Applying for Credit Raises My Credit Score.”

If you apply for too much credit over too short a period of time, it can send signals to lenders that you are “desperate” or at the very least overextended.

To learn more, call Smartline Rockingham today: (08) 9527 1800.