An entire generation of Australians everywhere have grown up in a mindsetwhere owning the latest iPhone is a must, at any cost!

Whether the cost is entering into expensive phone contracts or using thelatest buy now pay later service, the financial impact can last for years andmean people are rejected for a mortgage according to a leading Australianconsumer and financial law firm.

Consumer and finance law firm MyCRA Lawyers CEO Graham Doessel said newcomprehensive credit reporting laws means banks now know so much more abouteverybody and their financial matters including when they buy a new phone andhow they buy it which could be enough ruin their credit rating and see themrejected from borrowing to buy a home.

“You’d be amazed how often something simple as buying a new phone can snowballinto a full-blown credit crisis for some people,” Mr Doessel said.

“Often when you apply for a new phone the telco will do a credit check whichshows up on your file, & if you buy the handset upfront using a buy-now-pay-later service, some of those will do a credit check as well.”

“Once you have a few of these in a short period on your credit file you runthe risk of being rejected outright for a home loan,” Mr Doessel said.

“Some lenders treat buy now pay later services the same as payday lenders,which means an automatic rejection,” Mr Doessel said.

“But the issues don’t stop there. If you sign up to an expensive contract withthe cost of the handset rolled into your monthly bill and you start missingpayments, chances are your telco will default you.

“Telcos are one of the most common causes of defaults on a credit file, whilea default won’t necessarily rule you out of getting a home loan it willcertainly be enough for your bank to see you as a risk and therefore apply ahigher interest rate, which may price you out of the market,” Mr Doessel said.

“Shopping around for credit whether it be a buy now pay later lender, creditcard deal, or other personal loans that require a credit check, can see youruining your credit score in a matter of days and lock you out of a housingmarket for 2 years or more.

“If you’re worried you might have blotted your credit file you can get a freecopy of it once a year at

“Depending on what you find on there, many can be removed so you can improveyour score and boost your chance of getting a loan approved, or negotiating alower interest rate,” Mr Doessel said.

“Credit providers have to follow very strict rules when it comes to marking aperson’s credit file and if they don’t follow them we can have the black marksremoved.

“I’m yet to see a credit file that doesn’t have a default on it that hasfollowed the regulations in every respect, and it’s those breaches of theregulations we are experts in finding,” Mr Doessel said.

“It is absolutely worth looking into because it can be the difference betweengetting a loan and not getting one, or saving thousands of dollars in interestevery year.

“The easiest way to see what defaults exist on your file is to go and apply for a free copy of your credit file,” MrDoessel said.

Previous Sugar ants’ preference for pee may reduce greenhouse gas emissions

Next Prairiewood Man Convicted and Sentenced for Cruelty Towards GermanShepherd Pup

Leave a Reply

Your email address will not be published. Required fields are marked *