Getting your home loan approved is a big and exciting milestone. But it’s also a long-term commitment, and how you manage it plays a big role in your overall financial wellbeing, including your credit score.
Comprehensive Credit Reporting (CCR) helps lenders understand how you’ve managed your credit over time, so that they can make more informed assessments of your credit application. Your credit report includes detail such as if you’ve made your repayments on time, how much you owe, and whether you’ve had any formal hardship arrangements in place.
Staying on top of your repayments and keeping your loan in good shape means you’re in a stronger position if you ever want to top up your loan, apply for another loan, or access credit down the track… whether it’s for a renovation, a new car, or even a well-earned holiday.
Think of it as future-proofing your finances. A little effort now can open up more options later.
Tips on keeping your home loan in top shape
Make repayments on time
It might sound simple, but this is one of the most important things you can do. Under CCR, your repayment history is tracked for 24 months, so missed or late payments can impact your credit profile, even if they were accidental.
TIP: Set up automatic payments or calendar reminders to help you stay on track.
Use your loan’s features
Got an offset account or redraw facility? These features can help you reduce the interest you pay and give you flexibility if you need to access funds later. Take the time to understand what your loan offers and make it work for you.
Watch out for lifestyle creep
If your income has gone up, it’s easy to start spending more. But tipping even a little extra into your loan or offset account when you can, may help you pay off your loan faster and reduce the interest over time.
Ask for help early
If things get tough financially, don’t wait to reach out. Bluestone has support options for customers experiencing financial hardship, and we’re here to help.
Under CCR, formal hardship arrangements are also recorded in your credit report. That’s not a bad thing as it shows you’ve taken responsible steps to manage your finances, but it does mean it’s important to get in touch with your lender early to discuss your options and avoid falling behind.
Let your home loan work for you
You’ve done the hard part by getting into the market. Now it’s about making your home loan work for your life, not hold you back from it. At Bluestone, we’re with you for the whole journey, through all of life’s ups and downs.
If you ever want to review your loan or chat through your options, we’re just a call or click away.
Disclaimer: The information provided is general in nature and does not take into account your personal objectives, financial situation or needs. It is not intended as financial advice. You should consider whether the information is appropriate to your circumstances, and seek independent advice from a licensed financial advisor before making any financial decisions.
