Page 41 - Smart Money

Smart Money

get an idea of how much you can actually save, and make sure that your
current payments are in order with your credit cards, personal loans, and
car loans. Even your phone and utility bills can impact your credit score
if they are not paid on time. You also need to speak to a mortgage broker
about staying on track with your spending habits, how much you need as
a deposit, and what sort of paperwork you need to get together. This is
the first step.

Valuable Resource

You can get a free credit check by going online to www.veda.com.au,
or you can contact a mortgage broker. Most mortgage brokers can do
a credit check, so it’s not diffi cult to get an idea of your current
credit score.

If you think you might not have a good credit rating, there are credit
agencies or lawyers who can look into your defaults. If the agency that
put the default on your credit file hasn’t completed all the steps correctly,
there are lawyers who can get those removed for you. It also depends
how long the default has been there. If it has been there for six and a half
years and has been paid, you might have to wait six months before you
can apply for a loan, because by then it will have dropped off, which will
increase your score. A low credit score is not a good thing.

Key Point
You should open a bank account in the same name as the mortgage
holder. Don’t put your savings in mum and dad’s bank account. Put it in
your own personal account. The account needs to have your name on
it, and it needs to show genuine savings. You also need to be putting
money into that savings account on a regular basis and not making any
withdrawals.

Another option to consider is a guarantor loan. If you don’t have enough
savings, your parents can put up their property as security as long as they

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