4 Credit Record Must-knows for Buying Property

Getting a grip on your credit record, one of the critical building blocks of your financial health, is vital to help you get into the property market.

If you are in the market for a house or potentially looking at renting a property, Johnson says it is advisable to first establish that your credit record is as clean as possible, or to start one by opening an account and building a positive profile.

This is according to Tim Johnson, Sales Director/Licensee forSeeff Dolphin Coast, who says having no credit record can be just as bad as having a poor credit record as banks and lending institutions need to be able to check to see how you manage your debt.

Furthermore, he says the quality of your credit record determines the interest rate you are likely to get when applying for a home loan or vehicle finance.

“In many cases potential employers also request to check candidates' credit records as a measure of ascertaining their financial stability and credit behaviour,” says Johnson.

“When trying to rent a property, your credit record is the first item on a landlord's checklist.”

He says your credit record contains your name, ID number, contact details, details of your credit accounts, payment history, details of any judgments, as well as the details of anyone who has enquired on your record.

“It is important to note that you have to give written consent for someone to do an enquiry.”

Johnson says there are four questions about credit records that are worth having the answers for.

These are:

1. How do I check my credit record?

Everyone can do one free credit check on themselves per year. You can do this online.

2. Can an error on my record be corrected?

Yes. Contact the Credit Bureau - it has 20 days to investigate a complaint and report back to you.

3. Can my records show fraudulent transactions?

Yes. Check if accounts have been opened in your name without your consent.

4. How can I improve my credit rating?

If you do not have any credit, open up an account - but make sure you pay the full amount owing every month.

If you are in the market for a house or potentially looking at renting a property, Johnson says it is advisable to first establish that your credit record is as clean as possible, or to start one by opening an account and building a positive profile.

“Take ownership of your credit record and it will stand you in very good stead,” he says.