Why credit reports matter for LMI
One of the factors that lenders consider when assessing the eligibility of a borrower for LMI is their credit history. A credit check is the process of obtaining and reviewing a borrower’s credit report, which shows their past and current credit accounts, payment history, defaults, bankruptcies, and other relevant information. A credit check helps the lender to evaluate the borrower’s creditworthiness, or their ability and willingness to repay the loan on time and in full.
Our Credit Reporting Policy explains more.
What is a credit report?
A credit report typically includes your personal details, such as your full name, current and previous addresses, date of birth, and possibly your employment history. It outlines your credit accounts, like credit cards, mortgages, and personal loans, detailing when they were opened, their limits, current balances, and payment histories. It also indicates the status of each account, whether it’s open, closed, paid, or delinquent. Your payment history is particularly important as it shows whether you’ve made payments on time, late, or missed them, and this record usually spans several years.
Regularly reviewing your credit reports is crucial to ensuring accuracy and protecting your credit score. Incorrect information can negatively impact your ability to obtain credit. You’re entitled to a free credit report from the reporting agencies to verify your financial records and safeguard your financial well-being.
Why has QBE accessed my credit history?
Just like your lender, we may also seek credit information about you from credit reporting bodies. It’s part of the process when deciding whether we will provide LMI to your lender for your loan. By signing1 the duty of disclosure and privacy consent on your loan application, you consent to us seeking information about you from a credit reporting body. Ours will appear as QBE Lenders’ Mortgage Insurance Ltd.
1 Either physically, verbally or digitally.
How long does it take for a credit check to appear?
Since both your lender and QBE may request your credit information, you might see two enquiries on your credit report. Ours will appear as QBE Lenders Mortgage Insurance Ltd.
These reports don’t always happen at the same time. Sometimes, there can be a delay between the two, but both enquiries relate to the same loan application.
Our aim is to have accurate, complete, up-to-date and relevant credit information. Our customer care team will provide details of the credit information we hold about you and correct any errors. Email us at [email protected]
Our Credit Reporting Policy explains more.