How and why you should obtain your credit report for your bad credit loan

04 Jul, 2017
How and why you should obtain your credit report for your bad credit loan

Before you start the application process for your bad credit mortgage, it's important to obtain a copy of your credit report. Knowing exactly why you might have been declined in previous applications is essential in moving forward with your bad credit home loan.

How will your credit history affect your bad credit loan?

Have you been declined credit in the past and are unsure why? There may be an outstanding payment or a default against you, which is a critical factor in determining what kind of loan you can get.

You should also know that the smudge on your credit history may still be payable, meaning you can qualify for financing options outside the sphere of traditional credit. It's not impossible that a black mark may also be accidental - you've made the payment but the debt remains due to a clerical error. This can happen from time to time and that's why it's so important to know your credit history.

Not every black mark on your credit score is treated the same. Considerations are made based on the type of defaults you have. Being behind in payments to your electricity provider would not be scrutinised as severely as a previous declaration of bankruptcy.

At the very least, having the details of your credit impairment will allow you to make an informed decision on how to proceed with your finances. It may not hinder your plans for getting a home loan at all, but in the worse cases it may prompt you to be more frugal in order to secure a bad credit mortgage in the future.

How do you obtain a credit report for your bad credit loan application?

Red Rock Mortgages recommends going to the Equifax website to secure a copy of your credit report. It's a relatively simple process, only requiring a few bits and pieces to verify your identity. Much of the information they'll need is limited to personal details, but to help you streamline the process, you should have the following ready:

  • Drivers licence or Medicare card
  • You employment details (ABN, or recent bank statements)
  • Most recent credit provider (credit card provider, electricity or telecom provider if you have deferred payments)

With the above information, it should be no problem at all to arrange for your credit report to be sent out to you. Once you have it, contact one of Red Rock Mortgages' expert brokers to get your bad credit loan application underway.