If you’re thinking about refinancing but think your credit history may impact your ability to do so, follow our top tips to ensure your credit score is ready to go when you are.

Credit score and refinancing: things to consider

Refinancing to access a better rate, improved features, or to consolidate debt can be a great way to save money.  However, if you have a bad credit score, refinancing may be a little more difficult – so what can you do?

If you think your score might affect your chances at a successful application, follow our recommendations below:

1. Find out what your credit score is so you can understand your borrowing power from the lender’s perspective 
   
   
2. Proactively take control of your debts, such as making outstanding payments. Demonstrating this to a lender can work in your favour
    
3. Consider specialist lenders who might be more likely to lend to those with impaired credit 
   
   
4. Put your savings and equity to work. This may involve demonstrating to the lender that you have enough equity or savings to borrow less than 80% loan-to-value (LVR) ratio
    
5. Speak to an Aussie Broker. Your broker makes refinancing easier by comparing a broad range of loans and lenders on your behalf to find the loan(s) that are right for you. You’ll also get help completing the application paperwork. 

Finally, when you’re ready to apply, it’s important to spend some time shopping around for the right loan. This makes it much easier because you can make a single application to just one lender. This is important because each time you apply for a loan, it’s marked on your credit history. If you apply for multiple loans, it might reflect poorly on you and the credit score you’ve worked hard for. 

To avoid multiple applications, get an Aussie Broker by your side to do the research. This can help you decide who you want to go with before making any applications. An appointment with an Aussie Broker comes at no cost to you, so chat with us today. 

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