How Your Credit Report Affects Mortgage Applications
If you’re new to buying property, understanding your credit report is essential. Think of it as your financial report card showing how you manage debts and obligations.
When applying for a home loan in Wollongong or the Illawarra, lenders use your credit report to assess your borrowing capacity and determine whether you’re a suitable candidate for a mortgage. Here’s what you need to know.
What is a credit report?
A credit report is a detailed account of your credit history, compiled by credit bureaus. It includes:
Credit products you’ve held
Repayment history
Defaults
Credit applications
Bankruptcy records
Credit report requests
Lenders use this information to assess your creditworthiness when you apply for a home loan.
What about a credit rating?
Your credit report also contains a credit score (sometimes called a credit rating). This score is based on:
How much money you’ve borrowed previously
How many applications you’ve made
Whether you pay on time
Scores typically range from 0–1,000 or 0–1,200 depending on the reporting agency. The higher your score, the stronger your application looks to lenders.
How to access your credit report
You’re entitled to a free credit report every 3 months. Reviewing it once a year is a smart step, especially if you plan to buy property soon.
Contact these agencies for your report:
Equifax: https://www.equifax.com.au/personal/products/equifax-free-credit-report
illion: https://www.creditcheck.illion.com.au/Auth/RefererLoginSignup/signup/1000
Experian: https://www.experian.com.au/consumer/order-credit-report
Different agencies may hold different data, so it’s worth checking more than one.
What if something doesn’t add up?
If you find errors such as debts that aren’t yours or incorrect personal details contact the reporting agency immediately. They should correct these free of charge.
Failing to fix inaccuracies could harm your future ability to secure credit.
Tips to improve your credit score
Manage credit card balances: keep them low and pay more than the minimum.
Use credit responsibly: don’t max out cards and make timely payments.
Review your report regularly: spot errors early.
Pay bills on time: set up direct debits to avoid missed deadlines.
Improve your credit mix: having only one type of credit can lower your score.
Limit new applications: too many “hard checks” reduce your score.
Can you get a mortgage with bad credit?
Yes, but it may be more challenging. Some lenders specialise in bad credit home loans and will consider personal circumstances. These loans often come with higher rates and fees, but they can still help you get into the property market.
Working with a mortgage broker, Wollongong buyers trust gives you access to these specialist lenders, alongside mainstream options. We’ll help you understand your choices and position your application in the best light.
Ready to explore your options?
If you’re unsure how your credit history might impact your home loan application, let’s chat. At Haus of Loans, we help clients across Wollongong and the Illawarra find finance solutions that fit their circumstances, even if their credit isn’t perfect.
Get in touch today and take the first step towards your property goals.