Hi,
Will my credit reports get affected if I enquire multiple lenders for a home loan. I am a first time buyer and have no experience in finance related stuff.
Last time, when I was looking to for Monthly mobile plan with Device, I checked with multiple providers online. Later I found out that they performed multiple credit checks which impacted my report negatively. Don't wanna get into same situation for home loan.
Sorry for a silly question, would appreciate any advice.
Thanks
Never sign a contract, or give all your personal details unless you are certain you want to go ahead. For things like credit, including phone plans where you pay after, a credit check most likely will be done.
……your personal details unless you are certain you want to go ahead
Pretty hard to not give your personal details if you're enquiring about a loan though.
I mean stuff like bank statements, payslips, drivers license- stuff required for an actual application. Lenders don't need those to see how much you can borrow and/or if their product is suitable for you.
I mean stuff like bank statements, payslips, drivers license-
Do the financial institutions need that to do a credit check? I've seen a lot of loan applications online that don't require the documents.
How u suppose to know whether you can get the loan if u don’t provide exact numbers. My broker, seen 3, all required me to provide those level of details in order to tell me exactly how much I can borrow.
Its quite unusual that you were credit checked for “enquiring” on phone plans. Are you sure you didnt sign the contract for the plans, got rejected (for some reason) for the device, and tried again at a different carrier?
Similarly for loans, unless you are putting in an application for a loan / pre-approval, it should not be credit-checked.
Or put it simply, dont be giving out your license and medicare card for processing until you are sure you want to proceed with the application.
Hope that helps
Its quite unusual that you were credit checked for “enquiring” on phone plans.
I had a default listed against my name a few years ago and I was still able to get a phone through vodafone. About 3 years after the original default listing, I logged into MyVodafone to see what upgrade options were available and noticed that they restricted me to phones that were about $5/month. There was a note to say I had been credit restricted. I've logged in regularly after the default expired (5 years) a couple a months ago and it seems like they've removed that restriction the last month or so.
I've been with Vodafone for about 15 years continuously and that new phone a few years ago is the only thing I've done recently that might trigger a credit check, yet they still seem to be "checking" regularly.
You can give different banks a call.
Ask about products & rates.
They'll give you preapproval application form.
Only when you submit your form will your credit report get pinged.
Since you have mentioned previous issues against your name, you should get a copy of your report and check everything is correct before applying for any loan.
https://www.equifax.com.au/personal/products/credit-and-iden…
Thank you for sharing the information.
Also you’ll always need to sign a personal consent form for the bank to do a credit check. So if you haven’t signed any bank forms during your enquire processs, then there’s definitely no credit check being done.
Comparing information no,
Applying for a loan yes.
First time use a broker so they can organise something suitable based on your circumstances.
Later on you can refinanced yourself for a lower rate