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How does your credit score affect your chances of getting a home loan? Unfortunately, this question is difficult to answer. Lenders in Australia don’t make their credit criteria public. Moreover, most lenders don’t rely solely on your Experian score to determine whether or not you’re at risk of default. Instead, they use their own internal credit assessments along with your score.
While it’s tough to definitively state what the cut-off point is for a home loan, Experian scores do have benchmarks that can be useful in getting an idea of how likely you are to be approved for a home loan.
A credit score in the bottom two categories isn’t necessarily a death sentence for your dreams of homeownership. There are lenders who specialise in offering home loans to borrowers with bad credit. They’ll take a more hands-on approach in assessing your credit history, taking into account extenuating circumstances. You’ll end up paying more in interest, but you’ll also have the opportunity to begin rebuilding your credit history.
Credit scoring provides a measure of your risk of future default based on your credit history. Each credit reporting body measures credit scores differently. If you get your free credit score from finder it will be delivered from Experian and will be a number between 0 and 1,000. The higher the number, the better your credit score is.
You can access your Experian Score for free through finder. You'll get a copy of your score as well as your full credit report. You can also get tips on how to improve your credit score.
Remember, a low score may limit your options, but it doesn't necessarily close the door on your homeownership ambitions. Even with a less-than-perfect credit history, there may still be home loan options available to you.
Get your free credit score now
Your credit score consists of a variety of factors from your credit history, including:
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