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Cricket and Credit Scores – How to Improve Your Score!

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January Newsletter

Cricket and Credit Scores –
How to Improve Your Score!

One of my favourite authors, Bill Bryson, wrote about cricket in his unconventional work on Australia – Down Under. “Listening to cricket on the radio is like listening to two men sitting in a rowing boat on a large placid lake on a day when the fish aren’t biting; it’s like having a nap without losing consciousness.” (To read more of this excerpt, see below.) That must be why I love cricket as I find it so relaxing.  However, from a scoring point of view, a higher one is always better and the Big Bash as well as the Test this summer has shown us plenty of high scores.
So I turn to credit scoring which also is better the higher it is but it is definitely not something to be relaxed about.
People often come to me stating they know their credit score and they are sure it is fine. But what they don’t realise is the number of applications on a file – even if you didn’t end up taking up the credit, can make your score diminish and with it your chance of loan success.  That is why is it a good idea to get your FREE credit report fromwww.mycreditfile.com.au (at least once a year).  Some of the data being collected by Veda includes 24 months of repayment history (whether you paid on time and the correct amount), the open and close dates of any credit contracts and any changes in your credit limits – whether up or down.   So you need to check what’s on it.
A good broker can check with various lenders what affect the number of items on your file will do BEFORE actually submitting your name on a loan application.  This way there is no reference on your file which will happen automatically if you apply directly through a bank.   This is a much safer way to protect your credit file. Also, a broker can order multiple valuations for free from many lenders to ensure you get the best result.  This service is what distinguishes a good broker from the limited service only one bank can give.
This is particularly important when buying “off the plan” so you don’t get caught with a low valuation and have to face a last minute desperate scramble to raise extra funds.
The biggest problems in obtaining a home loan I come across are when people have multiple credit cards of enormous limits and do not pay them in full each month as well as particularly nasty personal and car loans, again with late payments or under payments.
Veda talks here about 3 mistakes not to make with your credit card  http://bit.ly/2iiWeix


BUSINESS LOANS


 
Loans done for business but which have personal guarantees which are not declared on a a personal loan application can also cause problems.  Each of these actions affect your credit file and your ability to get finance.
 
 


People with multiple credit cards are often swayed into converting them into one large personal loan as bank staff will tell you this means you will pay less interest.  But what it gives you is an excuse for your poor payment behaviour and allows you to continue that action.

No change in the cause of the behaviour, no chance of paying it down.
If you are poor with your credit, you just must stop using it.  Cancel the cards and still keep paying them off but refuse to use them.  Get a debit card.  ME Bank along with other lenders offer a free debit card and if you use it, a free movie ticket each month – I love using these and not being sucked into paying for popcorn.  Flexing my financial restraint makes me feel stronger and better about other things.
While credit scores might not seem much fun, is it vital to protect yourself financially and then life becomes more fun as you can easily afford the life you want to live.   As Andrew Carnegie said:
“People rarely succeed unless they have fun in what they are doing.” 
And speaking of fun, here is more from Bill Bryson as he describes how he thought cricket on the radio sounded when he was visiting Australia:
‘Pilchard begins his long run in from short stump. He bowls and ….. oh, he’s out! Yes, he’s got him. Longwilley is caught leg-before in middle slops by Grattan. Well, now what do you make of that Neville?’ ‘That’s definitely one for the books, Bruce. I don’t think I’ve seen offside medium slow fast pace bowling to match it since Baden-Powell took Rangachangabanga for a maiden ovary at Bangalore in 1948.’ And Byron goes on.
‘So here comes Stovepipe to bowl on this glorious summer’s afternoon at the MCG, I wonder if he will chance an offside drop scone here or go for the quick legover. Stovepipe has an unusual delivery in that he actually leaves the ground and starts his run just outside the Carlton & United Brewery at Kooyong. That’s right, Clive. I haven’t known anyone start his delivery that far back since Stopcock caught his sleeve on the reversing mirror of a number 11 bus during the third test at Brisbane in 1957 and ended up at Goodiwindi four days later owing to some frightful confusion over a changed timetable at Toowoomba Junction.’ After a long silence while they absorbed this thought, and possibly stepped out to transact some small errands, they resumed with a leisurely discussion of the English fielding. Nearsden, is appeared, was turning in a solid performance at square bowel, while Packet had been a stalwart in the dribbles, though even these exemplary performances paled when set beside the outstanding play of young Hugh Twain-Buttocks at middle nipple. The commentators were in calm agreement that they had not seen anyone caught behind with such panache since Tandoori took Rogan Josh for a stiffy at Vindaloo in ’61. At last Stovepipe, having found his way over the railway line at Flinders Street – the footbridge was evidently closed for painting – returned to the stadium and bowled to Hasty, who deftly turned the ball away for a corner. This was repeated four times more over the next two hours and then one of the commenters pronounced: ‘So as we break for second luncheon, and with 11,200 balls remaining, Australia are 962 for two, not half and England are four for a duck and hoping for rain.’ ……..I may not have all the terminology exactly right, but I believe I have caught the flavour of it. (Bryson: 112:2000, Down Under)
Truly he captures the sound of cricket perfectly!