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Too many credit inquiries

Posted Thursday, 19 November 2015 at 11:36 by Shape Home Loans
Tagged: Self employed Loans | Loan for investment | LVR for investors | APRA lending laws | Loan for owners occupier | Investors | First home buyer | property investing | VEDA | 95% LVR | Low deposit | credit inquiries | Credit file | Refinance | Equity Release | Low Doc loans | Loan declined
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How many is too many?


In Australia, when you apply for any credit such as; Home loans/ Credit card/ Store card/ Car loans/ personal loans/ Telecommunication service/ Utility paid in arrears. It will automatically be marked on your credit file for the next 7 years. However the last 12 month is the most critical and can determine if you get approved or declined even on a 80% LVR loan.

Our banking system works differently to overseas market, the less credit inquiries you have the better!


Credit inquiries and applying for a home loan ( new loan, pre-approval, refinance and equity release)


As a general rule.


If your applying for a 80% LVR loan of under ( Min 20% deposit or equity) - Keep the number of credit inquiries below 4 in the last 12 month and below 2 in the last 6 month.
If your applying for a loan over 80% LVR ( 80.1-95% LVR) - Keep the number of credit inquiries below 3 in the last 12 month and below 1 in the last 6 month.


If any of the following applies, reduce the above credit number by 1.


  • You had a loan rejected in the last 6 month
  • More than 12 credit inquiries in the last 24 month
  • More than 70 credit inquiries in the last 5 years
  • Your on probation or been employed in your current position for less than 6 month
  • You have high consumers liability such as credit card, car loans and personal loans ( Over $30,000 in limit)
  • You do not have genuine savings
  • You have applied for credit with a non-conforming lender or have a non-conforming lender on your credit file in the last 24 month **
  • You have an default payment marked on your credit file

If any of the following applies, you can increase the above credit number by 1-2 subject to approval ( Please contact us for a personalized advice)


  • High net worth client, over $1,000,000 in net worth
  • Have more than 3 properties in Australia
  • Applying with a non-credit scoring bank
  • LVR is below 70% ( Min 30% deposit)
  • Have a strong financial relationship with the bank you are applying with ( Normally have at least 4 product and over $500,000 in asset)


Who is consider a non-conforming lender


Non-confirming lenders generally deal with people who has a unique situation that does not fit the traditional banks criteria. Having a non conforming lender on your financial is fine as long as you and your broker/banker knows how to present the file and choose the right bank and LVR to present the deal with.

In most cases we find that consumers that have a great credit file does not know they are applying for a loan with a non-conforming bank as it's well "packaged" Ie Some of the big retailers interest free deals and car dealership are done by Ge Money, which is considered a non conforming lender.


Some non-conforming lenders are worst than others, especially the overseas one and payday lenders. There are over hundreds of non-conforming and private lenders, we will list the top 12;


  • Payday lenders
  • Pepper home loan
  • Liberty financial ( Very common for some car dealership)
  • Ge Money ( very common for the Harvey Norman and related store card)
  • Fox Symes
  • Redzed
  • La trobe
  • Paramount
  • Bluestone
  • Merchant Mortgages
  • Resimac
  • societyone

How to check your credit file and credit score


Contact us for a free credit file check and explantion on your file ( NO CREDIT HITS, our one is a "soft hit")

Email: info@shapehomeloans.com.au

Call: 1300 745626




You can order your own for free here ( Click here to be directed to the free credit check link) 


Veda Credit file 


Updated: July 2015

How to improve your credit file - Click here



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