A credit health check is a process that helps individuals and businesses evaluate their financial standing and creditworthiness. Fair Wealth Australia conducts these checks for members to help them get ready for a loan application or to review the structure and costs of their existing credit sources such as credit cards, personal loans, mortgages etc, with the view to restructuring and saving interest or fees.
Why do I need a credit health check?
Well, we start with getting your basic credit health checked to understand your position when it comes to accessing new credit or other financial services. Lenders use this information to determine whether to lend you money or provide credit, and so it is important we know where you stand with your score. Credit health checks can help you:
Assess your creditworthiness Your credit score is a numerical representation of your creditworthiness. The higher your score, the better your creditworthiness, and the more likely you will be approved for credit. A credit health check can help you determine your credit score and assess your creditworthiness.
Identify errors and inaccuracies Your credit report contains information about your credit history, payment history, credit accounts, and outstanding debts. A credit health check can help you identify errors and inaccuracies in your credit report, such as incorrect personal information or payment history.
Improve your credit score A credit health check can help you identify areas where you can improve your credit score. For example, you can improve your credit score by paying your bills on time, reducing your debt, and avoiding opening multiple credit accounts simultaneously.
How does our credit health check work?
Our credit health check involves reviewing your credit report and credit score by contacting a credit bureau or using a credit monitoring service. We do this carefully and professionally on your behalf because if you do it too often in a short period of time it can negatively impact your credit score. This is because creditors may interpret multiple inquiries as a sign that you're desperate for credit or have financial difficulties. Our checks however do not impact your score and leave no record that a check has been made.
With your credit status in hand, we then review your specific loan and credit situation. How many do you have? What interest rates are you paying? What is your repayment status? What fees are involved in making any changes? What are you future credit needs? and more.
With this information collated, we then provide some options that you wish to review for shifting or potentially consolidating loans and credit facilities to reduce fee exposure, as well as interest rate charges and any other costs.
The final result can often be an improved credit structure saving you money while also improving your credit score and the opportunity for further loans in the future. YOu can get up to two FWA Credit Health Checks per annum when joining Fair Wealth Australia. These on their own could potentially save you more than the weekly membership fee alone.
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