Credit file issue

The next bank will only see that you've applied for finance through ANZ, not the declinal. They will make their own decision.

http://www.mycreditfile.com.au get a copy of your file to see what you are up against. Many banks will still consider the small defaults and teleco type stuff. But if you have anything listed as unpaid they generally won't. It may also be possible to remove certain listings such as defaults.

Hi ToWhomItMayInterest, are your defaults paid? Unpaid? Currently being repaid etc? While there is no such thing as a good default, a default which has been paid is seen as significantly better than an unpaid default. Another factor that comes into play is the recency of the blemishes, for example, if all defaults were paid in full 3+ (or another arbitrary timeframe) years ago some lenders will ignore smaller defaults on the basis that you have effectively 'done your time' and you are now a worthwhile risk. While yours aren't small defaults, they aren't enormous by any stretch of the imagination.

Unpaid defaults will hurt though, it won't necessarily exclude you from obtaining finance but the interest rates will be sky high and the LVR's low. You mention CBA granted finance some time ago so i'll take a wild stab at the dark and assume they are paid? I certainly can't imagine CBA overlooking 3 unpaid defaults, regadless of size. If they are unpaid, could it be that they were listed as unpaid after you obtained the finance?

As for removing defaults, the bad news is you can't unless you can demonstrate that there was an error in listing. Defaults are removed from your credit history 5 years (in most cases) from the date they were listed.

If the defaults are paid, you will probably find these will not preclude you from some mainstream lenders (accompanied by a satisfactory explaination) but if they are unpaid you are going to either go to a non conforming lender and pay through the nose, pay the defaults and wait a little before your next application so you can demonstrate change financial behaviour, or wait 5 years from when they were listed and wait for them to drop off the bottom of your credit report.

Best of luck

Jamie

be honest…if you forgot to pay a telco bill or credit card then state that. telling a sob story won't get you that far…lenders will have heard it all….

Terry agreed we must have got the same email.

Problem is that they wont lend to expats be there tried lol.

Pwinne

Hate to disgaree with you my friend but Westpac are just as tight on underwriting if not even tighter.

Certainly wont consider 3 paid defaults especially where 1 is in favour of finance by way of a credit card.

Also Westpac wont do more than 80% LVR for an expat where as Anz will still go to 90%.

Each lender and mortgage insurer has its own policy in regards to defaults however given the number and amount it is unlikely either of the main mortgage insurers will touch it.

For Raymonds benefit RAMS have already decline the deal on running it past their credit department.

Admitedly Anz credit policies have tightened (Even yesterday they amended servcieability criteria again) but this is the case with most of the majors.

Must admit i think you must have just been dealing with the wrong person at Anz as I am sure if credit or the local State Manager new they were going to loose the deal they would have allowed the loan to roll over again to IO. 

Certainly agree with you about interest rates with the ANZ.