Question about credit history.

buddy92 · 25-06-2012, 05:37 PM

Hi guys, have a quick question for my brother.

He has a car through finance ( capital finance ) but he wants to trade his car in for a newer one around the end this year next year some time, he's had it for 5 years now.

The problem is his credit history isn't all that good at the moment so when he goes to get a new one, will the finance company credit check him all over again cause, or they wont because he is already financed through them?

Thanks again.

Windsor342ci · 25-06-2012, 05:40 PM

Yes they will.

Veda is not your friend if you have bad credit.

Basically it doesnt matter what he currently has, Within those 5 years, he could of gotten a home loan, 100K+ rack up on credit cards etc, no lending company will lend more money without checking these things, and if they dont check them, there not the lending company you would want your family dealing with as it may cost you a knee cap or two.

buddy92 · 25-06-2012, 05:43 PM

Oh ok then, fair enough, I will tell him.

He can only try and they can only say yes or no I suppose.

xisled · 25-06-2012, 05:51 PM

I had a bad credit mark on my credit file. I still got my GT on Finance through Esanda. As long as it is paid, he may have a chance. If he has not paid the bad debt, I would not even try and get finance.

buddy92 · 25-06-2012, 05:52 PM

Well as I was typing this I got my credit report back from D&B, I noticed this on there, someone able to tell me anything about "accesses" and what this would be?

Quote:

2
12/04/2012
15:20
2412103151952 Revolving Credit $99,999.00
GE CAPITAL FINANCE
AUSTRALASIA LTD, User 000002
Principal

I have NO idea what I got or applied for that was $99,999.00

xisled · 25-06-2012, 05:57 PM

Quote:

Originally Posted by buddy92

Well as I was typing this I got my credit report back from D&B, I noticed this on there, someone able to tell me anything about "accesses" and what this would be?

I have NO idea what I got or applied for that was $99,999.00

Did you apply for anything through that finance company. $99,999.00 Just seems like a number they just put in to get a result.

buddy92 · 25-06-2012, 06:00 PM

Quote:

Originally Posted by xisled

Did you apply for anything through that finance company. $99,999.00 Just seems like a number they just put in to get a result.

Is "GE Capital Finance" Capital finance? My car is through Capital Finance, but it hasn't got GE in it, and my car isn't $99,999.00

xisled · 25-06-2012, 06:02 PM

Not to sure you could ask them to investigate where that request came from.

buddy92 · 25-06-2012, 06:04 PM

Quote:

Originally Posted by xisled

Not to sure you could ask them to investigate where that request came from.

Yeah good idea, cause I got no idea what that is, and that's alot of money to have on my credit history yes?

VICFPV · 25-06-2012, 07:49 PM

D&B is rubbish.
Only use Veda Advantage.
These days its tough to get credit.
If you have maintained all your repayments and have not missed a payment with direct debit it helps.
But the repayments might go up.

Riksta · 25-06-2012, 08:24 PM

I work assessing credit applications. Although on a much lesser scale than most car loans.

All I can say is contact Veda Advantage (www.mycreditfile.com.au), get a copy - I think it should be free unless you want the express service, and have a look - if there's unpaid adverse items perhaps wait until they're paid before applying. Or take a chance and apply with them there.

It may even help if there ARE adverse items to get into a payment arrangement for them prior to applying for more - a company may look upon this a bit kinder than it being completely unpaid.

Either that, or just go for broke and apply - you'll find out soon enough if there's adverse items on there!

buddy92 · 25-06-2012, 08:42 PM

The only one with Veda is $40+ guess I have to pay that for accurate one?

Jason[98.EL] · 25-06-2012, 08:42 PM

Just been through the bad credit file thing
I had to have the biggest one on there paid out before I could get more finance even though I had a letter from the company stating that I only had $200 owing on it

It is a bugger to get finance if there is anything on there that's not good
it took my loan application just over 2 weeks to be approved
now I am still looking for a car as what I wanted the loan for has been sold and I am having trouble finding something as the same or as good for the money that I have to spend

jason

buddy92 · 25-06-2012, 08:45 PM

Can I pass mine onto someone on here via pm for them to tell me what's bad on mine? I don't understand it or is there stuff on it people shouldn't know? Haven't read all of it cause its huge only has my name and all that.

I reckon · 25-06-2012, 08:46 PM

finance companies .....they love people who cant pay money back ..............thats what they hope you to do fail in your repayments so they can reposses your car .

buddy92 · 25-06-2012, 09:18 PM

So best bet is to repay any debt you have?

Yellow_Festiva · 25-06-2012, 10:06 PM

Look in Advice Central about credit history lol.

Pay any debts to try and make your history look better. Veda does have a free option but it takes 10 days and you need to provide proof you are you.

If you pay the $42, pay the extra $10 to get any updates to your file for the next year.

Don't underestimate the power of a bad rating... Or an incorrect rating either.

rancidpunx · 26-06-2012, 06:03 AM

Be aware that just making applications for credit looks bad on your history. Even store cards and mobile phone contracts are marked down as a line of credit. I am fairly certain that your history just shows the applications made and not whether it was accepted or not. What ever is on that file is there to stay, for life.

I had issues in England when i was younger with an incorrect history. I have the same initials as my father. As an 18yr old I tried to get finance to buy a guitar amp but was refused. I had to pay to get a copy of my history and take time to try to get it fixed. It was a horrid process. It appeared that I was an 18yr old with a 30 years of store cards, credit cards and home loans.

ray38l · 26-06-2012, 08:50 AM

Quote:

Originally Posted by rancidpunx

Be aware that just making applications for credit looks bad on your history. Even store cards and mobile phone contracts are marked down as a line of credit. I am fairly certain that your history just shows the applications made and not whether it was accepted or not. What ever is on that file is there to stay, for life.

I had issues in England when i was younger with an incorrect history. I have the same initials as my father. As an 18yr old I tried to get finance to buy a guitar amp but was refused. I had to pay to get a copy of my history and take time to try to get it fixed. It was a horrid process. It appeared that I was an 18yr old with a 30 years of store cards, credit cards and home loans.

I'm pretty sure if you have 2 credit applications within 6 months it goes against you. I'm going through it all at the moment, just waiting for my credit report to turn up. everything should be good but I was out of work for 6 months last year and things got hard really quick.
with how much I earn now I would be surprised if they knock me back but I would like to know what's on there before wasting my time.

xisled · 26-06-2012, 10:54 AM

Quote:

Originally Posted by rancidpunx

Be aware that just making applications for credit looks bad on your history. Even store cards and mobile phone contracts are marked down as a line of credit. I am fairly certain that your history just shows the applications made and not whether it was accepted or not. What ever is on that file is there to stay, for life.

I had issues in England when i was younger with an incorrect history. I have the same initials as my father. As an 18yr old I tried to get finance to buy a guitar amp but was refused. I had to pay to get a copy of my history and take time to try to get it fixed. It was a horrid process. It appeared that I was an 18yr old with a 30 years of store cards, credit cards and home loans.

There is limits on how long items stay on the file. They do not stay on forever. I think application are around 2 years. Bad marks can be 5 or 7 years etc.

Shonky. · 26-06-2012, 11:21 AM

Your credit file also has a record each time you apply for finance.

Despite popular belief it does not distinguish between whether the application was successful or not so keep in mind what kind of picture you are painting with your activity and whether you will have the opportunity to explain.

For example it would look far worse on your file to apply for 4 different kinds of store finance in quick succession even if you were approved for all of them. It will look like you kept getting knocked back and then tried elsewhere.

Similarly, don't be concerned if once a year you apply for finance and are not successful (may be time to have a look inward, but in respect to your credit file it does not look bad)

Oh, and people who justify borrowing by saying "at least I am building up a good credit history" or the like: Your are not. Maybe you are demonstrating the ability to service a loan, but you would be at least as well off in saving this amount and demonstrating the ability to save.

Shonky. · 26-06-2012, 11:27 AM

Also, you should not assume you have a worse credit file than you do.

Just because you have been late on/missed payments doesn't necessarily mean it has made it onto your credit file.

Definately worth getting a copy

Shonky. · 26-06-2012, 11:28 AM

Quote:

Originally Posted by piggsy

finance companies .....they love people who cant pay money back ..............thats what they hope you to do fail in your repayments so they can reposses your car .

I'm going to assume your joking

understanding lending standards/asset management/book quality fail

aussie muscle · 26-06-2012, 11:36 AM

Quote:

Originally Posted by piggsy

finance companies .....they love people who cant pay money back ..............thats what they hope you to do fail in your repayments so they can reposses your car .

yeah, like they really want an old car. i'm sure they'd prefer the cash.

T3ts50 · 26-06-2012, 11:45 AM

Quote:

Originally Posted by piggsy

finance companies .....they love people who cant pay money back ..............thats what they hope you to do fail in your repayments so they can reposses your car .

Your kidding right

King Dribble · 26-06-2012, 11:49 AM

Coming from a Finance background, I can tell you a few things. Most finance companies have your application "scored". Things like how long you have been in your job (and previous one), how long you have lived at the same address (and previous one), what assets & liabilities you have, what income you are on , your age etc all "count" towards whether you are a sound financial risk for them to take on. So far as Credit history goes, it doesn't matter how many enquiries you have on your file. I used to see applications with up to 5 enquiries from different finance companies within a week of each other. These applications may have been APPROVED or DECLINED ( the system doesn't let you see due to the Privacy Act I suppose), and some applicants just told me they where "shopping around" for the best deal. They could have got the loan off them AS WELL as me & I would not now as long as they kept them up to date. As someone mentioned that earlier, what the COMPUTER looks for is BAD history. This could be things like late payments (from 1-7 days, 14-30 days, 30-60 days) or defaults >90 days, or when recovery action has commenced, or at the worst something like Bankruptcy. I know some of these things stay on your file for 5 years AFTER you have paid them off. In saying all this EVEN with if some bad months are behind your brother, the system will still score his application and they may or may not re-lend him. Sounds like a politician answer I know, and for the dude who had the $99,000 enquiry, an amount has to be put in to complete an application, so even though a PERSON has input this figure, it would have just been an obscure figure so it would stand out..I wouldn't be worried.

T3ts50 · 26-06-2012, 11:50 AM

Quote:

Originally Posted by ray38l

I'm pretty sure if you have 2 credit applications within 6 months it goes against you. I'm going through it all at the moment, just waiting for my credit report to turn up. everything should be good but I was out of work for 6 months last year and things got hard really quick.
with how much I earn now I would be surprised if they knock me back but I would like to know what's on there before wasting my time.

Not necassarily, as a Banker we do question what the applications are but it is only to ensure that there are no exsiting liabilities that the customer has not declared. You also have to remember that Electricity companies and Telcos also do a credit check on you which shows up on your file.

ray38l · 26-06-2012, 12:38 PM

seeing as though we have some people with backgrounds in finance I will ask a question my brother has been worrying about.
he had a $18000 personal loan with the Commonwealth bank with 7 years to pay it off. 12 months into the loan term he lost his job and couldn't pay the loan for 8 months. in that time he got a default notice and then a month after that he got a letter saying the loan is finalised. this was 18 months ago and when he got back into work he rang the bank to organize to pay it and the bank says he has no loan with them.
the question is do banks ever just write off debt?
a mortgage broker said that they might have done it because the only default listed is the original one and nothing has been added since. he also hasn't had anyone else contact him about the loan.

nt0351 · 26-06-2012, 12:49 PM

Quote:

Originally Posted by ray38l

seeing as though we have some people with backgrounds in finance I will ask a question my brother has been worrying about.
he had a $18000 personal loan with the Commonwealth bank with 7 years to pay it off. 12 months into the loan term he lost his job and couldn't pay the loan for 8 months. in that time he got a default notice and then a month after that he got a letter saying the loan is finalised. this was 18 months ago and when he got back into work he rang the bank to organize to pay it and the bank says he has no loan with them.
the question is do banks ever just write off debt?
a mortgage broker said that they might have done it because the only default listed is the original one and nothing has been added since. he also hasn't had anyone else contact him about the loan.

they have sold the debt to a recovery agent ,..they'll be in touch & will harass till they get every last cent and all default interest accrued.

ray38l · 26-06-2012, 01:00 PM

Quote:

Originally Posted by nt0351

they have sold the debt to a recovery agent ,..they'll be in touch & will harass till they get every last cent and all default interest accrued

that's what I think but surely the bank could tell him that.
also its been 18 months, surely if its been sold on someone would want there money by now