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Credit Rating Check for a Car Loan

March 26, 2013 at 11:25 pm

Some Questions to Consider if you are checking your credit rating for a car loan, resources courtesy of http://www.carloans.com.au/

  • One of the most important aspects of personal finance is your credit rating, but how many people know what their credit report says?
  • Did you know that you could see your credit report and see who is making inquiries on your credit rating?

happy guy car loanYou may not even realise that your credit rating is not good until you apply for a loan and find that there has been an error or you may have had a dispute with a creditor and you need to put your explanation on your credit report for any prospective creditors to view.

Each financial institution looks and rates different aspects of your credit report. So don’t despair if you have had defaults in the past if you have since made an effort to show regular savings. As stated, each financial intuition values different aspects of your credit report in different levels of importance. Even simple things like your mobile phone bill are important. If you find it difficult to pay your mobile phone bill on time then how is a lender to believe that you can make mortgage repayments?

  • You can view your credit report by contacting Veda Advantage.
  • To improve your credit score you should try to use your credit card as often as possible to show consistent timely repayments.
  • You may even need to get a second low interest credit card to ensure that you always make your payments on time if you find yourself juggling your finances.

Watch What You do to Preserve Your Credit Rating

March 26, 2013 at 5:19 am

Credit rating decreases can suddenly see you unable to get finance when you most need it, but there are many things you can avoid to help preserve it. With a little diligence and foresight, you may be able to save your credit rating from total disaster.

Pay your bills on time

It may seem silly to mention such a simple thing, but it merits it due to how it can devastate your credit rating. Remember that lending requires a certain rate of repayment to remain profitable for the lender. Essentially, repayments on credit have to reduce the principal and the interest accrued. As long as you are repaying at a rate higher than the cash rate affects your principal, you remain profitable, but any sign that you might become unprofitable, like missing a payment, is a very bad thing. Make sure you pay everything on time, and don’t delay the minimum payment of many small bills to focus on paying more off a larger bill.

Restrict your applications for credit

Your credit rating will suffer every time a credit check is done on you, so restrict the number of applications you make as multiple rejections will have a negative effect on your credit rating. You will also probably avoid more debt this way, as minimising your use of credit should help you focus on the debts you already have.

Please visit our credit cards and loans pages for a selection of products available to those with a decent credit rating.

Queensland Maintains AAA Credit Rating

March 26, 2013 at 5:18 am

Queensland Treasurer Andrew Fraser welcomed the announcement that Queensland’s AAA credit rating would continue. Mr Fraser said,

“This announcement is a strong endorsement of the Queensland government’s management of the state’s finances,”
“We are investing in the economic infrastructure of the state at an unprecedented rate with strong investment in capital works projects like southeast Queensland’s water grid, while maintaining a budget in surplus and our AAA credit rating.”

“With negative net debt, we have a balance sheet that is the envy of other jurisdictions,” Mr Fraser added.

Improve Your Credit Rating Over Time

March 26, 2013 at 5:14 am

It’s quite simple to improve your credit rating if you have improved your financial management capabilities since your previous days of poor credit usage.

You must begin by paying your bills and outstanding balances before they are due, and do this consistently. It’s far too easy to let your credit rating slip further by ignoring this simple and necessary method of maintaining a good credit rating.

You may also offset a bad credit rating to some degree if you can prove a regular savings plan, demonstrating that you no longer need credit to provide extra income, just to supplement investments and enhance your savings capability.

Do I Need a Credit Card

March 26, 2013 at 5:09 am

15 January 2008

With credit cards so easily accessible with many credit card companies and banks offering so many different products to gain your business and boost their profit margins, one of the questions many people ask is do I really need this credit card, especially after spending freely leading into Christmas.

The short and simple answer is that if you don’t need a credit card then you should certainly apply for a debit card. Almost all organizations, telephone companies and pay television providers such as Foxtel in particular will charge you a fee for sending you out a statement if you don’t have a direct debit in place for them to draw on. Having a credit card or a debit card for them to draw directly without having to send you out a statement can save you more than $60 a year.

Then you have other companies, such as the power companies that will charge you for any late payments.  Credit cards can certainly be a handy tool if used correctly. If you are worried about your credit rating and don’t think you can get a credit card then you can apply for a debit card.

Nearly all the major banks have a Visa or Mastercard debit card that can give you the same advantages of paying for bills, buying goods either in person or online that you enjoy with your credit card.

Credit rating EGG Credit Cards PR disaster

March 26, 2013 at 5:07 am

4 February 2008

Internet bank EGG has forwarded 160,000 notices to customers advising them that their accounts will cease to exist in 35 days after a “risk review” of their credit rating has determined they aren’t credit worthy for an EGG credit card.

EGG had claimed that it had taken the drastic action to minimise losses incurred by high-risk customers. A spokesman for EGG, who was bought out by U.S banking giant Citigroup last year said, “We are not using this as an excuse to get rid of unprofitable customers.” The Office of Fair Trading is set to begin an investigation after many claims from disgruntled customers began to surface.

Seven percent of Egg’s two million credit card holders will be affected. An EGG credit card holder told the BBC that she and her husband have always paid off their balance in full each month yet have been told their business is not welcome. The couple is retired with no mortgage, no debt, a joint income of approximately 35,000 pounds. And EGG has the audacity to call this a “risk review” of credit card holders.

Credit Cards and Bad Credit

March 26, 2013 at 5:06 am

30 September 2008

Are you interested in repairing your bad credit rating after being refused a credit card or a loan? Concerned about your financial future and want to take control or do you want to find out more about debt consolidation?

This great new article on Credit Cards may be able to give you the information you’ve been looking for. Covering topics like balance transfers, credit ratings, and how to improve them, this article could give you the jumpstart you need to get out of credit card debt. Learn more at Credit Cards.

Checking Your Credit Credentials

March 26, 2013 at 5:05 am

In 29 November 2007;  Have you checked your credit rating lately? Many people never even bother to check their credit rating until they apply for a loan or a credit card and find out something is wrong.

Are you the unknowing victim of credit card fraud or identity theft?

You can easily check your credit rating and fix any errors that may appear on your credit report or pay off any outstanding debts you may have to improve your credit rating. You can obtain your credit history report by contacting Veda Advantage (formerly known as Baycorp),

Boost To Wollongong Council’s Credit Rating

March 26, 2013 at 5:03 am

In 18 June 2008 wise spending and a focus on infrastructure backlogs by administrators has led to an improvement in Wollongong City Council’s credit rating.

  • Financial evaluators Standard and Poor’s has given the council a AA+ rating, the council announced yesterday.
  •  The rating, the second highest on the Standard and Poor’s scale, was also awarded to the council in 2005 and 2006.
  •  In 2007 the council received the same rating but with a “negative” outlook.
  • “This was based on concerns that a series of operating deficits were not being addressed by the then council,” a council spokeswoman said.
  •  ”This year Standard and Poor’s has revised its outlook rating … to stable”.

A Standard and Poor’s spokesman said “the appointment of administrators strengthens council’s credit quality because the administrators are implementing a plan to address the council’s maintenance backlog and accrual operating deficits.

“Importantly, the council has demonstrated a strong appetite for strengthening the council’s finances.”

Council administrator Robert McGregor said the management plan was “designed to ensure our long-term financial sustainability by reinvesting substantial funds into the city’s basic infrastructure, rather than embarking on major debt funded projects”.

Move To Lift Credit Rating Agencies From D To AAA

March 26, 2013 at 5:00 am

Credit Rating News

In 15 November 2008 the crunch finally came for credit rating agencies – those indispensable yet fallible institutions pilloried worldwide for their role in the subprime crisis… read full story

Credit Rating Is Treasurer’s Priority

In 13 October 2008 the NSW Treasurer has warned of higher taxes and falling corporate investment if the state loses its AAA credit rating, but business chiefs said strategic spending on transport and infrastructure was more important… read full story

Credit Cards and Bad Credit

30 September 2008, Are you interested in repairing your bad credit rating after being refused a credit card or a loan?

How can You Get Good Credit Rating?

What is credit rating? How can it affect your life?

Credit rating is a means used in evaluating a person or a corporation’s creditworthiness as a loan borrower. This paves way to the analysis of the borrower’s credit score. The rating is computed based from all previous and current financial liabilities, assets, and financial commitments of the loan applicant.

Creditors require a credit checking to all of their clients because it tells them how well the borrowers can qualify for the loan being applied for. But in the past years, the credit ratings have been also utilized in specifying one’s employment qualifications, adjusting the premiums of insurance, and in structuring the value of any leasing amount.

If you come up with an unimpressive credit rating, then the riskier it is for you to get disqualified from future loan grants. Also, high interest rates will be assigned to you.

Good Credit Rating Described

The process that is utilized by the creditors in the attempt of determining the possibility of approving your loan is known as credit scoring. Among the factors that affect your credit rating are the properties that you own, your promptness in paying your financial obligations, your monthly income, and employment status as well. If these factors are quite impressive, then your lender assigns you with a higher credit score.

It follows that the system with credit scoring varies from one creditor to another. They have different levels of experiences when it comes to their clients. Thus, they weigh the factors in the borrowers’ credit rating according to the possible risks attributed with their credit rating.

Below is the range of credit scores that are typically awarded by the creditors.

  • A score between 700 to 800 means Excellent or Very Good;
  • A score between 680 to 699 stands for Good Credit;
  • A score between 620 to 679 refers to Okay or an Average Credit;
  • A score between 580 to 619 means Low Credit;
  • A score between 500 to 580 shows Poor Credit, and
  • A score between 300 to 499 reveals Bad Credit.

You are lucky enough if your credit rating falls between the categories of average and excellent. But if it is the other way around, then applying for loans will certainly become so much of a pain in your neck.

Enhancing Your Credit Score

Accept it; the world where you live in is a place wherein your credibility matters a lot. This is all about being true to your word and in many cases; your word of honour must extend to your capacity of facing your financial responsibilities. You can’t easily convince a landlord to allow you to lease an apartment if he knows that you don’t have any resources to pay for the rent. Likewise, a creditor can’t risk granting you a loan if he knows that your credit rating is suffering. With a totally messed up credit rating, it is as if you are stripped off with the several possibilities of purchasing things. Yes, there are creditors who intend to help out individuals with bad credit rating, but then again, they need to get some assurance. It is either they require a collateral, assign escalating interest fees, or both.

You must have realized now that your credit rating must be as clean as a new slate. As much as possible, you must not commit mistakes that will eventually lead to a ruined credit rating. But if you can no longer turn back time, it is important that you make amends for your faults. Don’t let your credit rating suffer all the more. You have to cut off other incoming bad credit reports before they totally leave you in misery. Here are some ways that will guide you:

  • Get a frequent update of your credit record;
  • Pay your monthly dues on time;
  • Never attempt to miss any payment;
  • Don’t breach financial contracts; and
  • Don’t make other purchases which you can’t afford to repay.

The more frequent you commit these mistakes, the more bad credit reports your credit rating will receive. But, by following these important guidelines, you are on your way of improving your bad credit score. A bad credit is not something to be proud of. Rather, you should understand that a poor credit rating can tremendously affect your life and your future. This is not something that you must ignore because this concerns your name and your reputation. As long as time allows you to do so, improve your credit ratings now. After all, it is now or never.