Dream home

How to Improve Your Credit Score

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Your credit score is the single most important factor that affects all types of financing and credit requirements that you might need from financial institutions. It is basically a representation of your track record of managing your finances and repaying debts. After all, lending money has its fair share of risks and lenders would like to have some form of assurance that their money is not going into the wrong hands.
Without a good credit score, you will have a face a lot of hurdles and problems while getting your home loan approved. If you want to avoid such problems, then make sure that you work on building and improving your credit score.

Limit Your Debts

If you don’t think you will be able to pay off the debt in a reasonable amount of time, then don’t take it on in the first place. Debts are good when planned and repaid properly. The longer your repayment duration, the more interest you will have to pay. This will definitely have an impact on your finances. The best way to tackle this situation is to pay more than the EMI and complete the debt as soon as possible. Credit cards have a higher interest rate than other types of loans so make sure to pay off the balance every month and don’t spend beyond your means. Also, avoid debts unless absolutely necessary. This will help you to avoid hassles.

Pay Your Bills on Time

Not paying your bills on time is one of the most common reasons credits scores are hitting the floor for so many people. Probably the most difficult thing is to keep a control on your expenses when you have credit cards at your disposal. When it comes to repayment, people usually go beyond the deadline and / or skip the monthly payment. This affects the credit score badly. If you are not able to repay the required amount, then pay AT LEAST the minimum BEFORE every due date.

Understand Your Credit Score

Do you know your credit score? Is it accurate? If you don’t understand your credit score, then it’s about time that you checked your report and took a better look at the finer details. The situation might be grimmer than you anticipate. Some of the important factors which affect your score are as follows.

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Analyse the Credit System Applicable in Your Region

A credit reporting system is made up of three main players: consumers, credit bureaus and financial companies. You need to understand the system and find out the exact parameters and metrics that affect the credit score. Understanding the system will help you to use the system to your advantage by planning your finances and debts in such a way that it helps you in enhancing your score and providing you with a lucrative appeal.
The following diagram should help you to understand the relation between the important elements of the credit system.

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Check and Remove Errors from the Reports
Statistics show over 80 percent of consumer’s credit reports have errors. This literally kills most credit scores. Most of the times, the errors are left in the report because they are not detected and modified accordingly. Don’t expect the authorities for you as they have thousands of reports to manage. You need to proactively check the reports and communicate errors and irregularities with supporting evidence. The sooner you clear the report of errors, the better your chances will be of getting an accurate credit score.

Posted by First Stop Lending  |  Comments Off on How to Improve Your Credit Score  |  in Blog

Are You Eligible for a First Home Buyer Grant?

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If you are a first time home buyer in Australia seeking financial assistance, then a First Home Buyer Grant will help you to buy your dream home. It gives you the financial aid that helps you to make the first payment for the home and then manage the rest with the help of a home loan.
What is a First Home Buyer Grant?

The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. The Scheme was established to assist first home buyers to purchase their first home by offering a $7,000 grant. Eligible first home owners can receive the grant regardless of their income or the area in which they are planning to buy or build.

The scheme allows eligible individuals to purchase a house, townhouse, apartment, unit or similar contingent on the valuation being $750,000 or less. Most importantly, the property cannot be a holiday home or an investment property. If you match the criteria, then you can enjoy the benefit of this scheme and get your first home.

Eligibility for First Home Buyer Grant

  • In order to get the First Home Buyer Grant, you need to meet the following eligibility criteria. The applicant needs to be a natural person above 18 years of age. Companies and Trusts are not eligible to apply for the grant.
  • The applicant should be an Australian citizen or a permanent resident.
  • New Zealanders holding a special category visa under s32 of the Migration Act 1958 and anyone holding a permanent visa under s30(1) are considered to be a permanent resident for these purposes.
    At least one applicant needs to occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of settlement or construction of the home.
  • The applicant should not have received the grant earlier.
  • The applicant should not have owned a home in Australia, either jointly or separately, prior to 1 July 2000,

 

Don’t Base Your Home Buying Decision on Grants

Some buyers choose properties due to the additional benefits of availing first home buyer grants. This may work out for some, but it is better to seek low interest rate home loans that help you to get substantial savings and you can use the amount for investment properties, holiday homes and other residential properties. If you need help with home loans, you should consult with our dedicated home loan specialists who have years of experience in the market and they are more than determined to help you get the lowest home loan interest rates in the market.

Posted by First Stop Lending  |  Comments Off on Are You Eligible for a First Home Buyer Grant?  |  in Blog
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