When looking for a home loan, people naturally want to find a good rate, and loan product. But, sometimes this backfires. Too many enquiries on your credit file make it harder to get approved.
What exactly are credit file enquiries?
Credit file enquiries are also called credit file marks. These enquiries, or marks, go on your credit file every time you apply for finance. It doesn’t matter what this finance is for. Whether it’s a credit card, personal loan, car loan, or home loan – each application will leave a mark.
What many people don’t know, is that it doesn’t matter whether you accept the finance. Imagine you apply for a credit card. But, unfortunately, you’re declined. Or maybe you change your mind, and decide not to accept the card. A mark will be put on your credit file, even though you never got the card.
The other thing to remember, is that credit enquiries stay on your credit file for 5 years.
Why are credit enquiries a problem?
Every lender has different policies on enquiries. The number of acceptable enquiries varies from lender to lender. The time frame in which these enquiries can occur also varies.
A lender is highly likely to decline you, if you have more enquiries than their policies allow. This will happen even if all your other circumstances fit that lender’s criteria, and if apart from the enquiries, you would a perfect applicant.
Thus, you can be declined, even if you were previously eligible. It’s easy to see how making too many credit enquiries can be disastrous.
So how do I avoid getting too many credit file enquiries?
The answer is simple – in theory. You can avoid getting too many credit file marks by only applying to lenders who are likely to approve you. But knowing which lenders will approve you can be rather difficult, as can learning their policies.
This is where we come in. At Bee Finance Savvy, we keep up to date on lender policies. After assessing your situation and your needs, we’ll know which lender is likely to approve your application. We’ll also know how much you can borrow. This helps us get your application right the first time.
We only lodge an application when we’re as certain as reasonably possible that you’ll be approved. This protects both your credit file, and your eligibility.
To find out more, get in touch with our very helpful and friendly broker Desiree! You can call or text Desiree on 0455 131 937 or 1300 140 554. Desiree can also be reached at email@example.com . Or, you can fill out the contact us form on this site.
Would you like to learn a little more about Bee Finance Savvy? Take a look about what our customers have to say: https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda