You have missed more than payment recently
Missed payments are when you’ve not made repayments due under a credit agreement. For example, missing the last two months’ credit card repayments. Lenders considering loan applications see the current status of your account. If two payments have been missed this will show a ‘status 2’. If this is in the last 12 months, you…
Read MoreYou’ve borrowed and not made a payment
According to your credit file you may have taken out a loan and never made a repayment. Creditors sometimes call these runaways or first payment defaulters. In such a case it is almost certain you would be turned down for a loan. Tip: If you have taken out a loan and never made a payment,…
Read MoreWhy NestEgg is the right fintech partner for credit unions
Selecting a fintech partner for credit unions is more important than ever. As expectations for digital experiences continue to increase, there has never been a more opportune time for credit unions to consider partnering with a fintech company. Credit unions are often behind the competition, because their systems are unable to keep up with rapid…
Read MoreYou have an older or larger default on your credit file
If you’ve missed between three and six payments, on a credit account you may be declared in default. Defaults are serious. Often a lender will automatically decline an application if there has been a default. This is especially the case if the default is large. It can even be the case if the default was from a…
Read MoreYou have a default on your credit file
If you’ve missed between three and six payments, on a credit account you may be declared in default. Defaults are serious. Often a lender will automatically decline an application if there has been a default. Importantly, defaults remain on a credit file for six years. Once a default is on your file it cannot be removed. Tip: If you…
Read MoreYou spend a lot on paying back credit each month
Creditors take a look at how much you’re spending each month on credit commitments. If this is too high they may reject your loan application. This is known as the ‘monthly debt ratio’ and relates to the ratio of monthly payments on accounts to monthly income. In other words how much of your income is…
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