Do’s and Dont’s to Get a Good Credit Record

It’s all about good credit ratings and maintaining your credit score!   Whenever someone applies for a mortgage, one of the first things a bank does is run a credit check on them. As of 12 March, these credit checks are going to change. Under the new regime, every time someone misses their payment by more than five days, their credit file is given a black mark and their credit rating gets worse. The current system is less comprehensive; simply registering things like the number of credit enquiries someone has made and whether or not they have any defaults. But, in addition to these, under the new system individuals will have an incentive to manage their reputation – loan applicants get green lights for positive factors such as how often they have made repayments on time. Here are some of the things that banks will know from the new credit checks.   Whether repayments have been made on time over a two-year period If a repayment of over $150 is more than 60 days late, it will be listed as a default The limit on the credit cards for which you have applied The type of card for which you have applied The date you opened a credit account, the type of account, and when it was closed If, because of a default, someone has entered into a new varied arrangement for repayments     Dos and Don’ts to Get a Good Credit Rating under the New System DO Set up automatic debits to pay your credit card and loans on time Close any credit facilities you don’t need Check your credit file http://www.mycreditfile.com.au/   DON’TS Pay a debt more than five days later Shop around for credit cards and store leases when you don’t need them Fail to contact ‘Us’ Invent Finance  your Broker to renegotiate your repayment...

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Consumer Confidence jumps

Source: Roy Morgan “The weekly Roy Morgan Consumer Confidence Rating has risen to 124.2 (up 4.4pts in a week since October 5/6, 2013) to the highest level since January 8/9, 2011. The jump was caused by an increase in confidence about all components of the survey. Now 42% (up 5%) of Australians expect the Australian economy to have‘good times’ over the next five years compared to 17% (down 2%) that expect‘bad times’ for the Australian economy. Also 37% (up 3%) of Australians expect ‘good times’ economically over the next twelve months compared to 24% (unchanged) that expect ‘bad times’ for the Australian economy. Australians are more confident about their personal finances compared to this time last year with 33% (up 1%) saying they are ‘better off’ financially than this time last year and 22% (down 2%) saying they are ‘worse off’financially (the lowest for nearly six years since December 2007). Also 45% (up 5%) of Australians expect to be ‘better off’ financially this time next year compared to just 12% (unchanged) that expect their family to be ‘worse off’ financially. An increased majority of Australians (55%, up 4%) say now is a ‘good time to buy’ major household items while just 16% (unchanged) of Australians say now is a ‘bad time to buy’.” This means there is an increase in the Australian  Economy and shows a stability in finances meaning more Consumers are confident in the Property and Business...

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Sydney house prices jump 2014

SYDNEY PROPERTY PRICES SET TO RISE UP TO 20% IN 2014 The housing market property is set to accelerate in 2014 led by Sydney, which will record a housing boom, with prices in that city now expected to rise between 15-20%, with the weighted average capital gain in 2013 to be between 7%-11%. The forecast came after Sydney outperformed predictions made at this time in 2012, thanks largely to historically low interest rates and an improvemtn in sentiment towards the national economy will further drive buyer interest in the national housing market....

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