The Property Trio (formerly The Property Planner, Buyer and Professor)

#65: Bad credit behaviour - What does it mean and how can it be solved before it's too late?


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http://propertyplannerbuyerandprofessor.com.au/ In this week's episode of the Property Planner, Buyer and Professor Podcast, the team take a deep dive into the world of credit reporting, debt consolidation and how you can manage your money effectively to get a great credit score. Dave, Cate and Pete dissect: 1. Credit scores and comprehensive credit reporting Big brother is watching! The team take you through the new comprehensive credit reporting system, what goes into your credit report, and how your credit score is calculated for a positive or negative outcome. 2. The traps to avoid that impact your credit score Even honest mistakes that are rectified quickly can show up on your credit report (and remain there for 5 years). We take you through some careful tips to help you avoid these common errors. 3. Tips on how you can manage your money effectively Money management is a critical pillar for success in your property journey. We outline key strategies on how you can keep a handle on your spending habits and build the foundation of your wealth creation journey through an effective money management system. 4. Money management and a detour into the Australian economy Australian's rate of savings is up 20% during Covid. We are saving more money than ever since our lenders have been monitoring the rate of consumers savings. This huge amount of savings will be spent domestically, especially when travel is back on the cards, and it will play a large part of supporting the Australian economy. If you can save now, you can save any time! 5. Debt consolidation and why prevention is always better than cure! Debt consolidation through refinancing can make it easier when you have multiple, (higher interest/shorter loan term) repayments that are getting out of hand. With tailored assistance, you can consolidate into one loan to reduce your overall monthly repayment(s). The key is to act quickly before the situation unravels - speak to your strategic mortgage broker today about the pros and cons, but the most important part of the equation is changing your spending habits! 6. Real life bad credit stories Have you heard the one about the bank that gave a poor unsuspecting consumer a permanent credit default because they were uncontactable, even though they made the payment right away once they were reached? It happens all the time. The same lender 5 years later is now the only lender who will lend money for a new mortgage. Oh, the irony! David and Cate share some of the weird, wonderful, and frightening stories and first-hand experiences, how they could have been prevented, and the different solutions available. 7. Credit scores are very important, but there are lenders who cater for those getting their finances back on track! There are many niche and non-conforming non-bank lenders that are willing to take on consumers with poor credit ratings - but it comes at a price, normally in the form of higher fees and interest rates. Accessing these lenders can means that property plans don't need to be on hold while you clean up your credit rating, and once you get yourself tidied up, you can always refinance to a mainstream lender with lower rates that suit your mortgage strategy! 8. How to check your credit score Did you know that you are entitled to access your credit score and credit report for free? There are a number of websites that allow you access, ensure that you choose one that is government recommended. Check below in our show notes for some portals. 9. And of course, our 'gold nuggets' Visit the show notes ...
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The Property Trio (formerly The Property Planner, Buyer and Professor)By Cate Bakos, David Johnston and Mike Mortlock

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