Your Credit File: Beware the 0% Transfer

By Shane West

We deal heavily with our clients’ cash flow management and our process usually entails;

  • Finding out where your money goes
  • Setting realistic spending targets
  • Making sure we hit the targets, and lastly;
  • Using newly found excess cashflow to pay down debt or build your wealth

Once we have a handle on your cash flow, then it may be time to refinance or borrow to invest.

However, once the hard work is done we often find that something in your credit file may not be to the bank’s liking and brings our plans to a grinding halt.

What to be careful of

  • 0% Balance Transfers/Loan Applications

Each time you apply for credit (including the balance transfer offers) it’s noted on your file. This is ok within reason, unless there are a number of applications in a short space of time in which case the bank can view your file as ‘Busy’ and therefore high risk.

I recently read an article where the advice was to keep rolling your 0% balance card between providers in order to save interest. Bad idea – doing this more than once can raise alarm bells with banks.

  • Pay your bills on time

Telco’s and utility providers have a process. Normally it’s, ‘overdue’ and ‘really overdue’ – here debt collectors sort it out and once it’s in their hands it may have already shown up as a default.

Fennell West

Steps you can take

Fennell West Finance can access your credit file and help fix some of these issues before we seek finance.

Remember the most important part is your cashflow. If you get that under control, everything else will fall into place.

Fennell West Finance Pty Ltd is a Corporate Credit Representative 480075 of BLSSA Pty Ltd ACN 117 651 760 Australian Credit License 391237.