How long has it been since you checked your credit score? Do you know what your credit rating is? While a lot of people will check their credit profile each year, others may not even be aware of how these important personal financial details are collated or stored. A personal credit score or rating can be incredibly important when it comes to applying to finance a caravan or for new credit and loans.
The planning to buy a caravan with finance should include a credit score check to ensure a good rating to attract a cheaper caravan finance interest rate offer. RV finance applicants that have a better credit rating typically attract a better interest rate as the rating is reviewed in relation to creditworthiness by lenders.
The references to credit rating, credit profile, credit report and credit score are separate items but are often mentioned when referring to an individual’s creditworthiness. The overall credit profile or report contain the score, the credit rating band amongst other information.
The credit score is a number which is calculated based on reports on the individual’s credit and loan activity. The range is between 0 and up to 1,000 or 1,200. The credit rating is where that score sits in what’s known as the band. The band range starts at bad or poor and goes up through different levels to good and excellent.
Knowing what is already on your credit report and what your credit score is, can be a great place to start to ensure it is as good as possible before applying for a caravan loan.
Credit Report Inclusions
The specific credit score is calculated with a formula and based on details as submitted to Credit Reporting Agencies from credit providers. The score then determines the rating. Both these and other details form the actual credit report.
The report or credit profile includes:-
- Personal information about the individual.
- Credit rating and with some reporting agencies also the credit score that determined the rating.
- The loans the products relating to credit such as credit cards that the individual has had over the last two years.
- Repayment history for loans and credit accounts.
- Credit defaults for loans, bills such as power, phone etc and credit cards.
- Information on the applications made for loans, credit cards and other credit accounts and products.
- Debt agreements and bankruptcy.
- Credit report requests from credit providers – lenders and other credit providers request a credit report as part of the loan application assessment process.
Credit Score Check Procedure
In order to check a personal credit score, individuals will need to obtain a copy of their credit report. While there are many advertisements offering to provide credit reports for a fee, note that you can do this for free. Each 3 months, individuals can receive a free copy of the report. These are available via Credit Reporting Agencies. The process on how to obtain your report can be found at Moneysmart.
Once a copy has been obtained, the information can be checked for accuracy and if errors or issues are included, the process for fixing these, or credit repair, can be followed.
Credit scores and ratings may be improved by reducing debts and by making sure bills are paid on time so as not to attract poor ratings from defaults and slow payment.
Importance of Credit Score to Caravan Finance Rates
The credit score itself is very important when applying for new loans including for caravan finance. A good credit score can indicate a good level of creditworthiness to lenders. The overall information contained in the credit profile also provides a good overview of the individual’s ability to repay the loan and not default.
Good credit scores mean better prospects for achieving cheaper caravan finance interest rates. Yes, at Jade Caravan Finance we do offer better rates and we work hard to achieve the cheapest caravan financing interest rates. But the credit score of our customer is taken into account by our lenders when assessing applications and preparing loan offers.
Another important issue associated with credit reports in relation to caravan finance interest rates is loan applications. Every time a person applies for finance, the application, whether proceeded with or not, is reported for inclusion on the credit report.
Calculating Caravan Loan Repayments
Multiple finance applications can be seen in a negative way by lenders. So efforts to achieve a better loan by making loads of applications can actually have the reverse effect and detract from any offer made. By engaging our services and utilizing tools such as the caravan loan calculator with balloon payment, this does not happen. Requests for loan offers made by brokers on behalf of customers in order to source the cheapest offer, are not recorded on credit profiles.
We can cover off on our many lenders to source the cheapest rate and best offer to save you time and any potential issues with a credit score from sourcing multiple quotes.
With the caravan shows already underway and plenty of opportunities to see the latest RVs, why not do a credit score check now in readiness to apply for caravan finance.
To apply for caravan finance contact Jade Caravan Finance 1300 000 003
DISCLAIMER: THE DETAILS AND INFORMATION IN THIS CONTENT ARE PREPARED AND PRESENTED PURELY FOR INFORMATION AND NOT INTENDED IN ANY WAY AS THE SOLE SOURCE OF FINANCIAL ADVICE FOR CARAVAN PURCHASING. IF ADDITIONAL FINANCIAL ADVICE IS REQUIRED, READERS SHOULD REFER TO A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, PRODUCT DESCRIPTION VARIATIONS, OR OTHER MISREPRESENTATIONS OF INFORMATION AS PRESENTED.