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What Affects Your Credit Score?

Before you jump at “buy now, pay later” apps like Afterpay and ZipPay, do you know what affects your credit score vs what doesn’t? 

Your credit score (or your credit rating) will generally range from 0 to either 1000 or 1200, depending on the credit bureau calculating it. The higher the number, the more favourable potential lending providers will look at you when it comes to repayments or any potential defaults. 

Credit scoring weighs up multiple factors linked to your financial history, such as the types of loans you have applied for or have paid off, the total debt to your name, and an in depth look at your repayment history covering everything from phone bills to mortgages. However, when it comes to knowing what affects your credit score, there are some surprisingly good and bad factors to think about in order to present yourself as financially fit. 

Six Factors That Can Negatively Affect Your Credit Score

Having a good credit score is crucial if you want to obtain the right pre approvals for big purchases later in life, such as a car loan or a mortgage. In some scenarios, it can also allow you to access more favourable loan terms and interest repayments – so what do you need to keep an eye out for in order to stay in the best possible position? 

Late Repayments – The concept of a “late repayment” may vary greatly between yourself and your lending provider. Even if you are as little as fourteen days behind on paying your phone bill, this can be lodged on your credit file – and take years to remove. 

Too Many Credit Applications – If you shop around for credit and apply to multiple credit providers within a short timeframe, this can lower your credit score as an enquiry is added to your report each time you apply – flagging you as a risk for potential providers. 

Missed BNPL Payments – Interest free, “buy now pay later” platforms like Afterpay are seen as an ongoing line of credit, or debts that you could potentially have. While this can impact obtaining future credit, missed payments will also be lodged as a red mark on your credit file. 

Payday Loans – When calculating your credit score, credit reporting bodies generally look at the type of providers you have applied for credit with. Payday loans usually come with massive interest fees attached, and indicates that you may not be financially stable. 

Incorrect Contact Details – While your current address may not seem like a factor when it comes to what affects your credit score, having incorrect details listed greatly increases your chance of a miscommunication when it comes to staying on top of any repayment obligations. 

Not Checking Your Credit File – Unfortunately many Aussies only tackle their credit file once it’s too late – meaning that they’ve been declined for a loan, and they’re trying to understand why. Check your credit file regularly to spot any potential red flags and avoid future pain. 

Sourcing Help With What Affects Your Credit Score

If you are ready to “level up” and get financially fit, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year or purchase a home, George Samios and the team at Madd Life are ready and waiting. 

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future and tackling your credit score strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality. 

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Seven Money Saver Apps To Get You Financially Fit

Whether you struggle to stick to a budget, save part of your income or keep track of your expenses, the good news is that there’s money saver apps galore in 2021. 

Gone are the days of keeping your receipts in a shoe box or struggling with an excel spreadsheet. We live in an age where our smartphones more or less resemble a fifth limb, the list of excuses used for staying on top of your finances is getting smaller and smaller – especially since there’s an app for just about every aspect of managing your money. 

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Our Favourite Money Saver Apps 

Instead of endless scrolling, why not use the powers of your smartphone for good? If one of your New Year’s Resolutions included taking a good hard look at your finances and acknowledging that there might be room for improvement, check out some of the best money saver apps available out there on the internet. 

#1: Your Bank’s App – According to the Australian Bureau Of Statistics, in 2021 over one quarter of Australians still don’t use internet banking. Utilising your current bank’s existing app is a great way to keep an eye on what’s happening with your finances and to split accounts up into everyday access, long term savings, direct debits for bills, etc. 

#2: Pocketbook – With your daily spending sorted into categories, you can easily see where most of your money goes, and what you might need to cut back on. Pocketbook is one of the best “all rounder” money saver apps out there, and it syncs with your bank account for users to get a scope on their actual spendings. 

#3: Money Brilliant – Similar to Pocketbook in nature, Money Brilliant is a “level up” as it also includes the option to track your superannuation and investment portfolios. There’s less leg work with this money saver app, as it automatically populates a budget based on your historical earnings and spendings, and can even find the cheapest petrol deals in your region. 

#4: Raiz – Formerly known as Acorns, Raiz Invest is an app that actively encourages users to save. It works by redirecting any “loose change” from everyday transactions into a portfolio that consists of stocks, via investing in exchange traded funds (ETFs). If you’ve never dabbled in the stock market or investing before, it’s a great starting point with minimal risk. 

#5: Good Budget – If you really want to start with the basics of budgeting, then this is the app for you. Good Budget is a digital form of the envelope system: that is, you set yourself limits for certain categories of spending, such as $100 a week towards groceries, or $50 a week on going out. It also allows users to access expense trackers and bank account linking like the above. 

#6: ATO – The Australian Taxation Office app is for individual taxpayers, small business owners and self-managed super fund trustees. It’s scope is surprisingly vast, and allows users to access their online services, lodge and track your income tax return, record and manage tax deductions, and can even calculate the amount of tax to withhold. 

#7: SplitWise – If you’re a uni student or living in a sharehouse, SplitWise is a wonderful method for keeping on top of group expenses. If you struggle to keep on top of “who owes what”, Splitwise keeps a running total on behalf of your household. It can also email reminders when expenses like the rent or power bills are due, or when someone “forgets” to pay you back. 

Sourcing Further Advice On Getting Financially Fit

If you’ve conquered money saver apps and are ready to “level up”, then it’s never too early to seek professional financial advice. Whether your next goal is to retire early, take a gap year or purchase a home, George Samios and the team at Madd Life are ready and waiting. 

With their entire business built on referrals, the team at Madd Loans have taken the mortgage broking industry by storm. Their overwhelmingly positive feedback has helped them to take out numerous industry awards, including the title of “Queensland’s Broker Of The Year” for four consecutive years. However, after working with a broad variety of clients in regards to their mortgage options, it made sense for the team at Madd to have the capacity to offer a full financial planning service.

If thinking about your financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality. 

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What Banks Look For In House Loan Applications

Hoping to get preapproved for a mortgage this year? Then be aware of what banks class as potential red flags when it comes to house loan applications. 

On paper, you might be under the impression that you’re a great candidate for a home loan with a stable job and a solid savings history. However, unfortunately the devil is in the details when it comes to house loan applications and approvals, and if you want to get the green light then it might time to curb that UberEats addiction.

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Six Red Flags Associated With House Loan Applications If you’re in the process of getting your ducks in a row to apply for a home loan, then there are a number of small yet notable factors that can greatly affect your chances of getting approved.

Changing Jobs – Above all, banks like stability. Even if you’re likely to earn more money through a new avenue of employment, lending providers like to see applicants holding down the same job for at least six months. Basically the more stable your employment is,  the better. 

Your Industry – Contractors or those who are self employed often have a harder time getting preapproved for a loan, did you know that the type of industry you work in can also play a role in approval? In particular, miners and farmers can be viewed unfavourably and as more of a “risk”. 

Credit Card Limits – Even if you don’t owe anything on your credit card or are on top of your repayments, banks view your spending limit on what you could have the potential to owe as an extra debt – so it might be time to lower than limit from $5000 to $2000 if you can. 

Late Payments – Have you missed a scheduled Afterpay installment, or perhaps been a few days late in paying your phone bill? If you don’t keep an eye on your financial commitments these could be viewed as defaults, which is a big no-no for lending providers. 

No Buffer Fund – Do you have an emergency fund set aside for a rainy day? In the event that you lost your job, how would you potentially pay back your mortgage? Even if you have a home loan deposit saved, buyers should have a separate amount stashed away for incidentals. 

Your Spending Habits – All lending providers will dissect your entire financial history with a fine toothed comb, so be honest and realistic about your spending habits. If your spending habits like take out or Netflix don’t have a good explanation, they’re classed as regular expenses. 

Where To Find Help With House Loan Applications 

Getting preapproved for a home loan has long been regarded as stressful, frustrating and time consuming – but the good news is that it doesn’t have to be. 

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, owner George Samios takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it. 

An independent operator can be your greatest asset when it comes to navigating loan options, as brokers are there to make you happy – not the banks. To speak to a Brisbane based mortgage professional, please get in touch with the team at Madd Loans today to help turn

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Buying A New vs Second Hand Car

When it comes to buying a new vs second hand car, there are certainly a medley of pros and cons attached to either option – so what do you need to know? 

Whether it’s your very first set of wheels or that bucket list convertible, buying a car is a big deal and not generally a purchase that rolls more than a handful of times for most Australians. While there are advantages and disadvantages for both types of vehicles, the answer will ultimately depend on what kind of car you had in your sights, and how much you’re willing to pay for it.

A Case For Buying A Brand New Car

Pro: Peace Of Mind – Peace of mind is everything when shelling out thousands of your own money, and life’s already stressful enough without having to worry about the reliability of your new set of wheels – especially when they come with a warranty. 

Pro: Technology – Are you the type to like bells and whistles? Brand new vehicles come with all the perks of modern day technology, including anything and everything from car safety systems, infotainment and driver assist systems – not to mention engine efficiency. 

Con: Depreciation – A simple fact of life is that brand new cars depreciate in value much more quickly than used vehicles. If your monthly loan payment isn’t high enough to compensate for depreciation, you could end up owing more than the vehicle is worth. 

Con: Limited Servicing Options – Many dealerships have strict conditions as to who can service your car if you want your warranty to stay valid, which can mean paying a premium or extra travel to the dealership just for a service. 

A Case For Buying A Second Hand Car 

Pro: Negotiation – Purchasing a used vehicle directly from it’s previous owner or even a dealership means more bargaining power. You could potentially save thousands for a cash payment, a year’s worth of road registration, or even request a service before purchase. 

Pro: Choice – You may find that the new car you’re looking for is pretty similar to last year’s model, however the latter will come at a significantly reduced price and only have a low amount of kilometres on the odometer – there’s plenty of choice in the used car market. 

Con: Ongoing Costs – Ongoing costs may well be more expensive since you’re servicing an older car with more tired parts. You may also need to shop around and find a trustworthy mechanic who has the right experience to work with an older vehicle. 

Con: The Element Of Surprise – While things can go wrong with all cars, if you’re purchasing a used vehicle it’s most likely older and could have a more colourful history than you might think. Always get a mechanic to double check your potential purchase to avoid any surprises. 

Have You Got Your Finance Sorted?

One of the most common traps that shoppers fall into when buying a new or a second hand car is committing to a car loan on a whim or out of panic. These often have much larger interest rates that are designed to take advantage of excited shoppers who are eager to “seal the deal” quickly, so that they can drive away with their new set of wheels. Thankfully, there is a Plan B. 

Since their inception in 2012, the team at Madd Loans have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the loan process both fun, educational and stress free – and he has a swag of awards to prove it. Although regarded as one of the top mortgage brokers in Queensland, did you know that they also offer a comprehensive range of car loan broking solutions too?


Whether you’re weighing up buying a new vs second hand car, Madd Loans can help to identify your personal profile and preferred loan option before matching it with the best solution on the market. To discuss your car finance options, please get in touch with the team at Madd today.