How To Borrow With No Credit History
Feb 10th 2004, 10:02 pm
#1
Guest
Posts: n/a
How To Borrow With No Credit History
guys, a member recently had trouble finding out the answer to this, so hope it helps.
How Do I Borrow With No Credit History
Basically all financial institutions subscribe to a credit data collection agency - it used to be the CRAA - or Credit Reference Association of Australia, however you can now access your credit report via companies such as Baycorp - online.
At present there is no such thing as 'Good Credit History' - there are really only 3 categories you will fall under -
1. No Credit History - you have never asked for credit for anything
2. Clear History - you have never been late in paying for any type of credit.
3. Impaired - the level of Impairment depends on whether you have been late with telephone bills, or simply not paid a loan back or are bankrupt.
Loans are available to everyone in each category. However, those in number 3, will have to pay more.
If you have an impaired rating in the UK, it does not get picked up in Australia as yet. (one day no doubt!!)
So, as long as you have a job or a business and the right amount of savings or deposit etc. getting a loan should be fairly straight-forward.
A couple of tips for you:
1. Always pay your phone bill in Australia. If your bill is more than 60 days overdue, a telco WILL put a default on your Credit Report and it is very unlikely you will get it off. This is happening more and more, and especially when you cancel one contract and swap to another, but the first one sends you a bill. Pay it, and then argue with them. Leaving it will end up in difficulties getting loans. Many young people are getting caught with this.
2. Deals on 24 month interest free or 36 months interest free for furninture and appliances. If you take advantage of this, please pay it all off in the time period allowed. All of it. If you dont make the last payment on the 24 month period, and owe even say $50 - then you will be charged interest for the whole of the period. ie. 24 months worth of interest charges on the original amount (say $3,000) at the applied interest rate - sometimes up to 29.5%p.a.
Hope this is of interest.
cheers
toddo
How Do I Borrow Money With No Credit History
How Do I Borrow With No Credit History
Basically all financial institutions subscribe to a credit data collection agency - it used to be the CRAA - or Credit Reference Association of Australia, however you can now access your credit report via companies such as Baycorp - online.
At present there is no such thing as 'Good Credit History' - there are really only 3 categories you will fall under -
1. No Credit History - you have never asked for credit for anything
2. Clear History - you have never been late in paying for any type of credit.
3. Impaired - the level of Impairment depends on whether you have been late with telephone bills, or simply not paid a loan back or are bankrupt.
Loans are available to everyone in each category. However, those in number 3, will have to pay more.
If you have an impaired rating in the UK, it does not get picked up in Australia as yet. (one day no doubt!!)
So, as long as you have a job or a business and the right amount of savings or deposit etc. getting a loan should be fairly straight-forward.
A couple of tips for you:
1. Always pay your phone bill in Australia. If your bill is more than 60 days overdue, a telco WILL put a default on your Credit Report and it is very unlikely you will get it off. This is happening more and more, and especially when you cancel one contract and swap to another, but the first one sends you a bill. Pay it, and then argue with them. Leaving it will end up in difficulties getting loans. Many young people are getting caught with this.
2. Deals on 24 month interest free or 36 months interest free for furninture and appliances. If you take advantage of this, please pay it all off in the time period allowed. All of it. If you dont make the last payment on the 24 month period, and owe even say $50 - then you will be charged interest for the whole of the period. ie. 24 months worth of interest charges on the original amount (say $3,000) at the applied interest rate - sometimes up to 29.5%p.a.
Hope this is of interest.
cheers
toddo
How Do I Borrow Money With No Credit History
Feb 10th 2004, 10:23 pm
#2
BE Forum Addict
Joined: Sep 2003
Posts: 2,666
Toddo..that is excellent information...thankyou. I better go pay the phone bill today!!!!!! 
Feb 10th 2004, 10:28 pm
#3
Moved out bush!
Joined: Nov 2003
Location: Chittering WA
Posts: 1,093
Re: How To Borrow With No Credit History
Originally posted by toddo
How Do I Borrow With No Credit History
I'm aiming straight away to get a credit card from bank, dont know how but am sure someone over there will supply one, make sure I use it and basically pay double+ what they want each month. My cred rating over here is blooming to say the least and its all down to my credit card. Every couple of months they increase the limit, its great.
How Do I Borrow Money With No Credit History
How Do I Borrow With No Credit History
I'm aiming straight away to get a credit card from bank, dont know how but am sure someone over there will supply one, make sure I use it and basically pay double+ what they want each month. My cred rating over here is blooming to say the least and its all down to my credit card. Every couple of months they increase the limit, its great.
How Do I Borrow Money With No Credit History
Feb 10th 2004, 10:49 pm
#4
BE Forum Addict
Joined: Jun 2003
Location: Sydney beachside
Posts: 3,505
Re: How To Borrow With No Credit History
Originally posted by toddo
Basically all financial institutions subscribe to a credit data collection agency - it used to be the CRAA - or Credit Reference Association of Australia, however you can now access your credit report via companies such as Baycorp - online.
At present there is no such thing as 'Good Credit History' - there are really only 3 categories you will fall under -
1. No Credit History - you have never asked for credit for anything
2. Clear History - you have never been late in paying for any type of credit.
3. Impaired - the level of Impairment depends on whether you have been late with telephone bills, or simply not paid a loan back or are bankrupt.
Loans are available to everyone in each category. However, those in number 3, will have to pay more.
If you have an impaired rating in the UK, it does not get picked up in Australia as yet. (one day no doubt!!)
So, as long as you have a job or a business and the right amount of savings or deposit etc. getting a loan should be fairly straight-forward.
How Do I Borrow Money With No Credit History
Basically all financial institutions subscribe to a credit data collection agency - it used to be the CRAA - or Credit Reference Association of Australia, however you can now access your credit report via companies such as Baycorp - online.
At present there is no such thing as 'Good Credit History' - there are really only 3 categories you will fall under -
1. No Credit History - you have never asked for credit for anything
2. Clear History - you have never been late in paying for any type of credit.
3. Impaired - the level of Impairment depends on whether you have been late with telephone bills, or simply not paid a loan back or are bankrupt.
Loans are available to everyone in each category. However, those in number 3, will have to pay more.
If you have an impaired rating in the UK, it does not get picked up in Australia as yet. (one day no doubt!!)
So, as long as you have a job or a business and the right amount of savings or deposit etc. getting a loan should be fairly straight-forward.
How Do I Borrow Money With No Credit History
Baycorp only knows what credit you have applied for, it does not know what credit you've actually been given, if any. If you apply for too much credit in too many places it can count against you - 10 applications for credit in 6 months is seen as a worse risk than say 3 applications (even though you may not have been approved for or taken up all 10) , so avoid chasing around for credit because every provider you approach will do an enquiry on you which is then attached to your file.
Feb 10th 2004, 11:28 pm
#5
Drunken Aussie
Joined: Jun 2003
Location: Brisvegas
Posts: 1,080
Re: How To Borrow With No Credit History
i found getting a credit card pretty easy here. i even had one as a temporary resident (they refused at first, but then i sent them a snotty fax detailing the stupid amount uk credit cards i have, and they just gave me one)! as a permanent, they just want to make sure you are in a job, then they give them away!
Originally posted by jensteve
I'm aiming straight away to get a credit card from bank, dont know how but am sure someone over there will supply one, make sure I use it and basically pay double+ what they want each month. My cred rating over here is blooming to say the least and its all down to my credit card. Every couple of months they increase the limit, its great.
I'm aiming straight away to get a credit card from bank, dont know how but am sure someone over there will supply one, make sure I use it and basically pay double+ what they want each month. My cred rating over here is blooming to say the least and its all down to my credit card. Every couple of months they increase the limit, its great.
Feb 11th 2004, 7:15 am
#6
BE Forum Addict
Joined: Oct 2003
Location: Nappyland
Posts: 2,886
Australia has a big market for 'non-conforming lenders' - i.e lending money to those who dont meet the usual lending criteria of banks. This will include mortgages, car loans, loans, etc to people with no Oz credit history - e.g. new migrants; those with bad credit history, bankrupt, self-employed, low docs, etc. You will pay higher interest rates as you are classed as a higher risk borrower but depending on your history, circumstances, how much you borrow, or what sort of deposit you have, interest rates aren't necessarily that much higher than bank rate
Liberty Financial is Australia's leading NCL www.liberty.com.au. ALso companies like Bluestone offer the same.
Liberty Financial is Australia's leading NCL www.liberty.com.au. ALso companies like Bluestone offer the same.
Feb 11th 2004, 9:42 am
#7
Guest
Posts: n/a
update
Hiddenpaw is right, the market for non-conforming loans as they are called is big enough to accommodate just about anyone that needs a loan, no matter the credit impairment.
An update on the product for new entrants to australia. I met today with a mortgage manager friend of mine and there is a product available for those wanting to buy a house with no job at present. You will need a minimum 35% deposit, however most people coming over have that sort of money available. I am meeting with his credit guy on Monday to sort the details, but the effective rate is competitive with the usual banking rates and there are no monthly fees.
I will put up more info next week.
cheers
toddo
An update on the product for new entrants to australia. I met today with a mortgage manager friend of mine and there is a product available for those wanting to buy a house with no job at present. You will need a minimum 35% deposit, however most people coming over have that sort of money available. I am meeting with his credit guy on Monday to sort the details, but the effective rate is competitive with the usual banking rates and there are no monthly fees.
I will put up more info next week.
cheers
toddo
