Article: Our House = Our Home

Budgets & Credit Files with Carrie Townley

Can you believe it’s nearly Christmas again? And what a year it’s been! Did you achieve all your financial goals? This time of year can have many of us looking back at what was financially successful and what’s left room for improvement.

In my updates this month, I show you how drafting up a plan and sticking to it, can help keep your budget intact this festive season as well as the impact your credit file can have on future loan applications.

Ho Ho How to budget for the silly season

As the year comes to a halt and Christmas is around the corner, many of us look forward to a (much needed) break to wind down and spend time with those who matter. This can be a great time to reflect on the year that has been and start thinking about a financial strategy for the year ahead.

The silly season can get pricey. Christmas gifts, parties to attend, new outfits for the occasions and -for those who go away- the cost of travel, food and accommodation. Here are some ways to help with the budget.

Curb your spending

It’s easy to get carried away spending, during this time of year. Try to not spend unnecessarily so that when the season is over, you won’t be left with having to recover from a big financial dent. Hand-made gifts and inexpensive meals are just some ways to keep you on track.

Make a budget and stick to it

The end of year break can be a difficult time to apply financial discipline so plan out a budget, outlining what can be spent over this time and stick to it. You may be tempted to go over budget in the spirit of celebration, but thinking of the bigger picture will see you be thankful once the party’s over.

Consulting a mortgage adviser can help you work out a financial plan when it comes to your mortgage that will keep you merry through the Christmas period.

Can the information on my credit file hinder my loan application?

As part of the approval process when applying for any type of finance, the lender will run a thorough check on the applicant’s credit file to determine their eligibility to secure funds and gain insight to their credit track record.

This will show each time someone has attempted to borrow credit, what their borrowing capacity is, as well as any default listings. A default is placed on your credit file when payment is not met, sometimes hindering your loan application.

A credit file also contains personal information and is typically kept for a period of seven years. Different forms of bankruptcy and information pertaining to that period, default judgements and public record information will be shown on file.

While usually, once a default is listed, even if has been paid, it can act as a black-mark against your name, there are ways around having a default removed.
This is where talking to a mortgage adviser can help understand the important role a credit file plays and can advise you of the different requirements by different lenders. Find out your options.

For a personal mortgage reduction analysis to identify the strategies that are in your best interest, contact Carie today on 0275 228 940, email .(JavaScript must be enabled to view this email address).

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