<title>Credit Score Calculator - Do Banks Think You Are High Risk Borrower? | Mortgage Broker Australia</title>Credit Score Calculator - Do Banks Think You Are High Risk Borrower? | Mortgage Broker Australia

Credit Score Calculator

A part of the process used to decide whether you are approved for a loan is the determination of a credit score. This is a calculation of the risk of you loan application and is based upon your income, employment, credit history, stability and security for your loan.

By using a method similar to that used by the bank and Lenders Mortgage Insurers, this calculator can estimate the ‘risk rating’ or credit score of your loan. It uses a similar method to that used by the banks and lenders mortgage insurers to assess loans.

This calculator can be used as to help you understand why a bank may decline your loan. However, some lenders believe particular aspects of your loan are a higher or lower risk, so keep in mind that this calculator should only be used as a guide.

To use our calculator please read on, however if you already know your rating for your credit score and have Australian real estate in mind, you can contact us and apply online today! Our brokers are credit score experts and can help you find the right lender first time. You can enquire online or call us on +61 2 8668 4038.

Using our calculator is easy!

Just answer the questions below and you’ll receive your answer instantly! In many cases there will be more than one person applying for the loan. If your answers differ, please enter the worst option as this is generally the one taken into consideration by the banks and lenders. For the recent credit enquiries question this includes all finance types including mobile phones, credit cards, store cards, electricity accounts, home loans & personal loans.



1. What are you using the loan for?
  To buy a home
To buy an investment property
To refinance a home
To refinance investment property
To consolidate debt
To help fund my business
2. Are you applying for a loan on your own?
  Yes
No
3. How long have you lived at your current address?
  < 6 months
> 6 months but < 2 yrs
> 2 yrs
4. How long have you been in your job?
  I’m on probation
< 6 months
> 6 months but < 2 yrs
> 2 yrs
5. How are you employed?
  I’m self employed for more than 2yrs
I’m self employed for less than 2 yrs
I’m permanent full time or part time
I’m casual
I’m a contractor
I’m employed by an agency
6. How many credit enquiries are on your credit file in the last 6 months (how many loans / credit cards / utilities have you applied for)?
  No enquiries
One enquiry
Two enquries
Three to six enquiries
More than six enquires
7. Do you have any credit problems such as judgements or defaults?
  I am bankrupt
I am a discharged bankrupt
I have more than 2 defaults OR my defaults are over $1,000 in total OR my defaults are not yet paid
I have 2 or less defaults AND my defaults total less than $1,000 AND they have been paid
My credit history is clear!
8. Have you missed payments on your current debts?
  Yes, however it was more than 6 months ago
Yes within the last 6 months
No, I never miss repayments
9. How much are you borrowing?
  $0 to $300,000
$300,001 to $500,000
$500,001 to $750,000
$750,001 to $1,000,000
> $1,000,000
10. What percentage of the property value (LVR) are you borrowing?
  Less than 60%
Between 60% and 80%
80.1% to 85%
85.1% to 90%
90.1% to 95%
11. Do you have any genuine savings or shares (gifts are not included)?
  I have more than 10% of the purchase price in savings
I have more than 5% of the purchase price in savings
I have 3% of the purchase price in savings
I have no savings
12. What is your net asset position (assets minus liabilities) like?
  > $1,000,000
> $100,000
> $50,000
> $25,000
$0 to $25,000
I own nothing!
I own nothing and I am on an income over $50,000
My liabilities are more than my assets

What to do if your credit score is low

At the end of the calculator you can fill in your details and they will be sent to one of our mortgage brokers for an assessment. If you are not actually looking to take out a home loan at the moment then please ask a question on our home loan forum. If you can outline your situation in the question you ask on our forum we can give you a more personalised answer.

Too many enquiries?

You should only apply with the lender that you intend to get a loan with! Do not put in multiple applications in the hope of getting an approval, this will do much more harm than good.
Thinking about her credit score
People in good financial positions with excellent incomes are often still declined by the banks and lenders. The number one cause of these declines is multiple enquiries on the customer’s credit file, which has caused them to fail their bank’s credit score.

What is an enquiry?

An enquiry is a record on your credit file showing that you applied for a loan or credit, the amount, which financier you applied with and the date of the application.

It also shows whether it was approved or not, or if you proceeded with the loan is not listed. You can have multiple enquiries from just calling several different banks and lenders asking what your borrowing capacity is.

This creates a ‘busy’ credit file and many banks have a policy of not touching these applications. Did you know that as few as one or two enquiries on your credit file in the last six months is enough to make you fail the credit score of several banks?

There are still some lenders that can help even with multiple enquiries on your file! As long as you can provide a good explanation and cheque account statements to prove which loans proceeded and which did not.

Does every lender credit score?

Although most of the major banks and lenders mortgage insurers use credit scoring to assess loan applications, there are still some lenders that use manual credit assessment for home loan applications. As the process isn’t as rigid, they can use common sense when reviewing applications and can potentially approve more loans.

In addition to this, each lender has their own credit scoring system, so each will have a slightly different result. Some lenders do not consider a high number of credit enquiries to be a high risk, while others will decline your loan outright simply based on the length of time in your current job.

The secret to getting approved is to find a lender with a scoring system that can accept your situation, or one with no scoring system at all. Our mortgage brokers are experts in credit scoring, so please enquire online or call + 61 2 8668 4038 and we can help you to get approved for your mortgage!