LOAN APPLICATIONS
WHAT INFORMATION DO
FINANCIAL INSTITUTIONS USUALLY WANT?
Most Financial Institutions
will usually require at least some of the following:
Your tax returns for the last year.
Your tax assessment notices for the last year.
Your current pay slips plus
work history.
Your last PAYG Summary
Statement.
(Most of the above
information is usually easy to obtain.)
SMALL BUSINESSES
Usually 2 years of the above
plus the following:
Tax Agent Portal 12
month history information for Income Tax and Integrated
accounts.
INTERIM FINANCIAL STATEMENTS
These are often requested by
Financial Institutions if your tax information is > 6 months
old.
This would require Income
and Expenses for the new financial year up to the current month.
This is time consuming and
costs about the same as doing an annual set of financial
statements and tax return.
CONFIRMATION LETTER FROM
YOUR ACCOUNTANT
For some small business
applications Financial Institutions
require a letter from your accountant confirming or verifying
financial statements, tax returns
and your ability to pay off your loan in the future.
Usually this is unrealistic as this would require a forensic accountant to audit
your source documents to verify your relevant
information and then guarantee that you would pay off your loan
on time in the future.
As a result accountants
rarely sign these statements without disclosures and limitations
on the scope of the investigation.
PERSONAL CASH FLOWS
Financial Institutions will
often require information on how you will manage to repay your loan
based on your personal cash flows
http://www.daviddouglas.com.au/Personalbudgeting.htm
CREDIT REPORTS
HOW DO I CHECK MY CREDIT
HISTORY FOR FREE?
CREDIT REPORTING CODE OF CONDUCT
LEGISLATION
1.7 A credit reporting agency must ensure that an individual is given access to his or her personal credit information file in circumstances where the request for access:
- relates to refusal of the individual's application for credit, or
- is otherwise related to the management of the individual's credit arrangements.
VEDA GROUP
You may contact the Veda
Group or any other credit reporting agency, to obtain a free
copy of your credit history.
http://www.mycreditfile.com.au/
It is always handy to know
as the Financial Institution where you are applying for credit will
usually ask for your authority to review your
report.
LATE REPAYMENTS OF CREDIT
LOANS OR MONTHLY BILLS
Some of my clients have been
surprised that they have been listed by Telecommunication
companies, Financial Institutions and other entities where they
have over due credit terms, credit cards, personal or home loan
repayments.
Usually you have to have
been at least 2 months overdue before you are listed.
It is important that if you
are listed to repay the debt and seek to have this record
expunged.
APPLYING FOR CREDIT CAN
AFFECT YOU CREDIT REPORT
Every time that you apply
for a telecommunication billing option, credit card, personal loan,
home loan or other credit arrangement, even if you do not go through with it,
this application can
end up on your credit report.
BANKRUPTCY
Needless to say this cannot
be good.
You should try to have this
expunged from your record as soon as possible, usually after at
least 7 years.
WHAT IS YOUR CREDIT SCORE?
Some Financial Institutions are
using credit scores to help evaluate a loan application.
See free credit score
calculator.
http://www.homeloanexperts.com.au/mortgage-calculators/credit-score-calculator/
Disclaimer
The information provided in the above documents is not intended to
be, nor should it be construed as tax advice. Any specific
recommendation for a client can only be done after their individual
circumstances have been determined by David Douglas Accountants.
We have clients from the following locations:
Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor,
Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle
Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.
Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba,
North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie
Island, Elimbah, Kippa-Ring.
We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and
sole traders.
Liability limited by a scheme approved under
Professional Standards legislation
