The importance of a good credit rating
Your credit file is the passport to your financial future so it pays to know what’s going on with it at all times.
Bad credit can stall growth
Your credit file is a valuable asset for investing. If it has lots of credit checks it will hurt you moving forward. A late credit card payment or late phone bill won’t affect you as much as having lots of loan applications in a short period of time, while you shop around for a better rate.
Minimise hits on your file
Some people put applications in for loans, just to see what they can get. Shopping around at different banks making multiple applications will result in a lot of hits on your credit file, which other banks may see as rejections. This makes things hard when applying for future loans. The best deal for an investor is finding a bank that can support you to reach your goals.
Find the right people
It’s important to find someone who can write you a loan when required, and who understands how banks will look at it. Whoever you use should have experience in obtaining finance for investors who want to grow a portfolio.
Keep it clean
Investors should know what is happening with their credit file at all times. The key is to keep the file intact and as clean as possible. It pays to learn what processes result in hits against your file – everything from phone service applications through to bank loan applications. Protect your file as much as possible as making mistakes along the way, can hold you back in the long run.
Stay informed
Subscribing to a monitoring service that allows access to full reports of your credit file and updates advising when your credit file has been touched. It’s important to know if your credit file has been accessed and why, as unnecessary hits can hurt your investing. Knowledge of these attempts is also vital should you ever need to contest a credit hit, on the off-chance something goes wrong.
