With the recent rise in interest rates many borrowers are looking at changing lenders. The importance of keeping your credit rating squeaky clean cannot be under estimated.
“Most of us stumble from time to time, perhaps being late with a telephone account or minor bill. The problem for many consumers is that as banks are taking a harder line on borrowers and applicants, these minor defaults can adversely affect ones loan application,” said Madeleine Hicks of LJ Hooker Everton Park.
“Keeping a clear credit rating gives you options. Banks are more likely to approve your loan application to start with and those applicants with equity and a good history can negotiate better deals with their lender,” explains Madeleine.
Whilst many are outraged by the greed of the big four banks by raising rates outside of the Reserve Bank of Australia’s official rates, changing banks may not be your best solution.
“Changing lenders is costly. Make sure that you will benefit overall. Often it is best to secure another loan then go back to your existing lender and negotiate an even better deal,” concluded Madeleine Hicks.
Madeleine Hicks can be contacted on 0413 733 617 or 3355 6845.