What is a credit report and why it matters for your mortgage.

If you're new to buying property, understanding your credit report is a crucial step in preparing for your home loan application.

Think of it as your financial report card, it reflects how you manage debt and financial commitments, and lenders use it to assess your creditworthiness.

Curious about your score?

Reach out to us at FinancePath! We can check it for you and help you understand what it means for your borrowing potential.

What is a credit report?

Your credit report is a detailed summary of your credit history, compiled by credit bureaus. It includes:

• Credit products and repayment history
• Personal information
• Defaults and credit applications
• Bankruptcy records
• Credit report requests

Lenders review this report to determine your reliability as a borrower.

Understanding your credit score

Included in your credit report is a credit score, which ranges from 0 to 1,000 or 1,200 depending on the reporting agency. The higher your score, the better your chances of securing a competitive home loan.

How to access your credit report

You can request a free copy of your credit report every three months. It's wise to check it annually, especially if you're planning to buy property. Contact these agencies:

• Experian: 1300 783 684
• illion: 132 333
• Equifax: 138 332

Note: Different agencies may hold different data, so consider checking with more than one.

Correcting errors in your credit report

If you spot inaccuracies—such as incorrect debts or personal details—contact the credit bureau to have them corrected. This service is free and essential for protecting your future borrowing potential.

Tips to improve your credit score

• Keep credit card balances low and within limits
• Make timely payments and avoid excessive debt
• Review your credit report regularly
• Set up direct debits to pay bills on time
• Diversify your credit mix
• Limit new credit applications

Can you get a mortgage with a bad credit report?

Yes, it's possible. Some lenders specialise in bad credit home loans and consider personal circumstances that may have impacted your repayment history. These loans may come with higher interest rates and fees, but they can be a viable option if your choices are limited.

Let’s talk about your finance options

At FinancePath, we understand that every financial journey is unique. Whether you're working to improve your credit score or exploring specialist lending options, our expert mortgage advisers are here to help you navigate the path to home ownership.

Book your free consultation today and take the first step toward securing your future.