Your credit rating is arguably your most valuable asset. Why? Well it’s the key to your wealth creation.
An invaluable lesson for anyone contemplating property investment is: “Know the value of your credit rating, and respect it like your financial life depends upon it because often it does.”
Banks are in the business of lending money which is obvious from the amount of money they spend bombarding us with advertising, They want your business! However, they want to know that you’re going to pay it back on time, with interest. They need to satisfy themselves on your past credit history, no different from a potential employer checking on a job applicant.
Every credit application you have ever applied for, every utility company you have an account with, is on the public record and will stay on that record for at least seven years. Your information is easily accessible by the banks. Before you apply for a loan it’s always a good idea to review your own credit file. Unfortunately most people do not realise that a missed payment can make or break a loan application.
Even an unresolved disputed account can lead to a black mark on your file and can subsequently effect your borrowing ability.
Learning how to value your assets is an important part of creating wealth. Your credit rating is just one thing for you to be aware of. For more tips on how to become an investor, or how to build your investment property portfolio, check out our Frequently Asked Questions Page.
Please call us if there is anything at all that we can assist you with.