Will requesting a Pre-Approval have a negative impact on my Credit Score ?
The short answer is …YES !!!
Q: How can this happen ???
The first step taken by any Bank in the Pre-Approval process is to access your Credit File to obtain a copy of your previous credit history & your current credit score.
Every time a Bank accesses your credit file a “file access” (i.e. “fingerprint”) is recorded on your credit file which reduces your Credit Score.
If you have 3 or more “fingerprints” recorded on your credit file within 6 months of the date you are actually applying for finance, your credit score is likely to have reduced to a level below the minimum the Banks will accept resulting in your Application for Finance being declined by the Bank.
And please remember that the Bank who is assessing your actual Application for Finance will also create their own “fingerprint” which means that if you already have 3 prior “fingerprints” on your credit file, the new bank will be recorded as the 4th & therefore your Credit Score will be reduced even lower.
Please also be aware that it is not only the Banks who create these damaging “fingerprints” on your credit file. Your Credit Score will also be reduced when you do any of the following:
- Request a copy of your “Free Credit Score” through an online or television marketing organisation
- Take out a new Mobile Phone Plan (even if you don’t change to a new service provider)
- Sign up for Certegy Ezi-Pay, Afterpay or zipPay
- Accept a new “Interest Free” Store Card or CreditLine facility
- Arrange a “Balance Transfer” of your credit card debt to a new credit card
Q: How can I find out how much I can borrow without a leaving a “fingerprint” on my credit file ?
For over 20 Years DPF Mortgage Specialists have completed thorough assessments of borrowing capacity with an incredibly high level of success & accuracy without recording “fingerprints” on credit files.
Our Mortgage Specialists have access to the approval criteria & lending policies of over 40 Banks & our Mortgage Specialists can discuss your specific circumstances with the Banks’ Senior Credit Managers. These Senior Credit Managers actually possess the authority to “Approve” & “Decline” your loan application & therefore the level of accuracy we achieve is significantly higher than if we simply approached the lower level credit analysts & branch managers who do not hold this level of authority or experience.
Protect your Credit Score … Talk with a DPF Mortgage Specialist