Are lenders declining your mortgage application and telling you after doing a credit check that there are issues with your credit file? Do you have these mortgage finance problems.
The following is an explanation why the banks are doing this to so many people currently and our major issue with mortgage finance problems.
The global banking industry experienced some major setbacks through poor decisions and poor lending practices in the last few years. They incurred large losses. You may even remember a couple of the large US banks going bust which involved mortgage finance problems.
After such a devastating impact the banks have “tightened their purse strings” by reducing risky lending practices. Lending is all about evaluating risk and making the right decision to lend or not.
Here in Australia the banks would appear to have “knee jerked” and applied criteria which is far too strict in an attempt to weed out possible defaulters. This has caused many potentially good borrowers mortgage finance problems.
The banks are running credit checks on every applicants Veda credit history and they are looking for any little default on your credit rating.
This approach means potentially good borrowers are tarred with the same brush as defaulters because of such minor marks on your credit file.
Small oversights in phone bills, power bills, credit cards etc. can all leave an adverse listing on your credit file and that sends the banks into a panic.
The bizarre part is that once they agree to lend finance on a mortgage they have the rights to the title plus a deposit you have placed, meaning it is almost impossible for them to lose money! So why do they decline you based on some tiny little bill from years ago?
Here’s the answer for their over cautious lending decisions, banks and lenders have over reacted and they are not placing the correct amount of perspective on the relation of the default against what type of loan you have applied for. In short, what the banks perceive to be “credit file problems” aren’t really mortgage finance problems at all.
The equivalent in court would be a shoplifter receiving a life sentence! Massive over reaction.
An insignificant default listing on your Veda credit check should not interfere with a mortgage but the banks are choosing to decline way too many people. There is nothing that can be done apart from wait for economic times to change and the banks’ lending policies will change also.
The only other alternative is to seek the assistance of a professional credit repairer to remove defaults or court actions from your credit file. Most consumers do not even obtain a copy of their credit file before applying for finance, instead they apply first then get declined and go looking after for what has affected their credit file.
Being prepared is smart and prudent, and obtaining a copy of your Veda credit file is the first step. One service we offer to clients who decide to be diligent and check their credit history first is our “assessment & recommendation”. Our online credit check assessment service gets you a complete rundown of your Veda file at minimal cost and very quickly. The “assessment & recommendation” service with our report costs $62.70 AUD and applicants to this service subsequently receive a free copy of the Veda credit file which we have accessed for them.
Find out what is on your Veda credit file before a bank has to tell you in an embarrassing and disappointing situation by declining your mortgage application. Get your Veda file assessment online now and save the un necessary heart ache or mortgage finance problems!
As part of our service and only at your request, Fix Bad Debt may access your credit file immediately conditional upon your authority being submitted. We are a registered access seeker to the credit file data base of Veda Advantage. Our express assessment of your Veda credit check information is a premium service we offer consumers to identify any issues which may require repair on their Veda credit file without delay. Please be aware that we do not provide direct online access to Veda Advantage or any of its related services, nor are we affiliated with Veda directly. We do not sell Veda credit files or engage in the resale of same. Should we access your Veda credit file information as part of our “chargeable assessment and recommendation service” or any other chargeable service, a copy of your credit file information which we have accessed will be provided to you at no cost. We do not provide credit files as a stand alone service, nor do we sell credit files as part of any other service we provide. If we have accessed your credit file on your behalf in conjunction with any of our other services, then you are entitled by law to request a copy be provided to you at no charge.