Helping your clients become Credit File aware.

As you know, having an excellent credit score is a key consideration when it comes to applying for a home loan or obtaining any other finance. Unfortunately, many of your clients may be unaware that they have a low credit score can make it difficult for your clients to be approved for a mortgage or loan.

As a mortgage broker, you play a key role in helping your clients navigate the complex world of applying for a home loan. One way you can assist your clients further is by helping them manage their credit profile and assisting with loan rejection.

Here are some tips to share with your clients:

1. Obtaining copies of credit files.

To help your clients improve their credit score, you need to know what you are working with. Whilst mortgage brokers can become Authorised Access Seekers to obtain access to their clients’ mortgage files, encouraging clients to also seek out this information will give them direct access to a detailed overview of their credit history, including any negative marks or missed payments.

Your clients have the right to obtain a free copy of their credit file once every three months. They can also request a free copy within 90 days of being refused credit, or, if their credit-related personal information has been corrected. Clients can request a copy of their credit report from Equifax, Experian, and Illion. Knowledge is power. Once you and your clients know the details of their credit files, you can assist your clients in planning a course of action to help them achieve their financial goals.

2. Identifying errors or inaccuracies.

Once your clients have their credit files, remind them to review them carefully for any errors or inaccuracies.  In our experience, common and less common errors include accounts that have been paid off but still show as outstanding, incorrect personal information, or accounts that do not belong to your client. If your client notices any errors, help your client identify avenues to rectify or dispute them with the credit reporting agency.

3. Encourage your client to pay off outstanding debts.

One of the most important steps in improving a credit score is paying off any outstanding debts . Mortgage Brokers can work with their clients to identify any debts that need to be managed or finalised. If your client thinks a debt is not theirs, is unfair or the amount listed is incorrect, reach out to us for more help.

4. Encourage responsible credit use.

Another key factor in improving a credit score is responsible credit use – if multiple credit applications are made in a year with high risk lenders this may impact your credit score negatively. Encourage your clients to make all their repayments on time, avoid maxing out credit cards, and keep new credit applications to a minimum.

5. Monitor progress.

Improving a credit score may take some time, and it is important to monitor progress along the way. A great way for clients to monitor their own progress is by checking their credit files regularly and keeping track of any changes to their score.

In conclusion, helping your clients be aware of their credit files is an important part of your role as a mortgage broker. By obtaining copies of credit files, identifying errors or inaccuracies, and collaborating with your client to pay off outstanding debts, as well as encouraging responsible credit use, and monitoring progress, you can help your client on their journey towards being approved for a home loan when the time is right.