I have a 216 Dollars paid default that I got from origin energy in 2016 as I moved my house and didnt find out abt the bill until I got the call from the debt collector and was paid straight away.
My question is, I have my own cleaning business that has gross income of around 90000.
I want to buy a brand new car worth 50 to 60k next year around May or June.
How hard it will be for me to get the car loan if I come up with 10 to 15 k deposit aswell.
Also, how hard will it be for me to get a 1000 or 2000 dollars limit credit card from my bank like right now.
I just dont wanna try if it's going to get rejected as that affects the score, I've been told.
Any help will be appreciated.
The first place to start would be to get your Equifax report so that you and your broker are aware of how the default is listed and to make sure that it shows as paid.
You can order a free report once each year.
When you have the report and assuming that the paid default is the only mark. You should be able to access a small credit card and next year you should be able to take out a secured vehicle loan for your business.
Unfortunately there are no guarantees that policy will not change or that a particular lender has an appetite for credit at the time you apply so it would be best to have the broker call your preferred lender and discuss the situation before any applications are lodged.
You are on the right track
I’d question the need to spend so much on a car. Is it for use in your business?
I congratulate you on you business, by the sounds of things you’re staring to see some success. However, a car loan is about the worst type of loan you can have & 50-60k on a car when you’re earning 90k is a lot of money.
Perhaps use some of the money you would have spent on the car to grow your business. Get your turnover to 250k+ then look at the car.
Just my two cents.
All the best.
Graham Doessel - CEO - MyCRA (Specialist Credit Repair) Lawyers (LPH)
Current Rating: 4.65 / 5
As mentioned above, because the default is for a small amount of money, you might be able to get a loan. You might have a bit more trouble getting a credit card with the default still showing (even if showing as paid) on your credit reports.
If you find yourself in a position of talking to brokers about buying a home or a car, make sure you mention the default as the WORST thing you can do is apply for loans or any other type of finance too often.
Too many loan enquiries (even starting with a perfect credit score) will destroy your credit score and credit rating. Most brokers will confirm that as few as four enquiries in the last six months, or a total of 6 credit enquiries in the last 12 months will likely result in an automatic decline from many (if not most) lenders and mortgage insurers.
The good news is that if you find yourself in this position, and you do have a less than perfect credit report, give my team a call (on 1300 667 218) and we can help you get an up-to-date copy of your Equifax and Illion credit files, explain how to read the credit files, what it all means to you specifically, and what your options might be.
So if you have defaults, enquiries, Judgments or other negative listings, there is a very good chance we can fix it for you.
I hope that helps Bunny
You will find it extremely hard to obtain finance with the default on your credit file even though you have paid it.
It is better for you to try and clean your file before you apply for any sort of credit as enquiries do alter your score making it less appealing to potential creditors.
I am a lawyer whom specialises in repairing credit files in order for you to be in a better position. Often creditors will default list you in breach of legislation. Only a lawyer should be dealing with this on your behalf be very careful of those whom are not lawyers.
Give me a call and we can have a chat and see if we can assist you 07 3106 3016