News - 8 June 2009The Alpha UpdateCredit Checks and Credit Records Regardless of the amount that you borrow, almost all lenders will do a credit check on you. In NZ we have one primary source of information for credit checks – a company called Baycorp. They hold massive computer files on just about every person of legal age in the country. Their base data is provided by the electoral roll and other publicly available information sources. As well as this public information, they accumulate private information about those who apply for credit. Lenders (and others such as Telecom, Sky TV, Appliance retailers, etc) access the credit files of their potential client (usually electronically) and lodge information about how much credit you require and for what purpose (vehicle finance, chattel finance, mortgage, etc) When you don’t make payments on a loan or to any company who supplies you goods and services on credit, most companies have a collection procedure that gives you some time to pay or dispute the invoice. After this, they may “send you to Baycorp”. This involves lodging a collection or a default recorded on your credit record held by Baycorp, (or worse if it is a bankruptcy or court judgment). Once an adverse item has been entered on your credit record, it normally stays there for 5 years. Depending on the nature and severity, it can have a major impact on your ability to get credit at a later date. However, Baycorp has a duty under the Privacy Act to ensure their information is correct. So, if you are unsure of your situation, you can apply to do a FREE credit check on yourself. Go to www.baycorp.co.nz. Just because you have defaults or collections lodged on your credit report, this does not mean that you cannot get credit. Each situation is assessed on a case-by-case basis, depending on the lender. Who do you know who may have problems getting a mortgage due to an adverse credit report? Get them to call me TODAY on 021 676747 or 0800 676 747 to discuss their situation and see how we can help. Food for ThoughtHumility is a virtue; timidity is a disease - anon What's New??
If you or anyone you know wants to know more about any of these products, email Stuart@alphagroup.co.nz Interest Rate and Currency CommentsThe Reserve Bank reviews its Official Cash Rate again this Thursday. Experts are evenly split between leaving the rate as is and dropping by 0.25%. The very high NZ dollar will encourage a drop; signs of stability in the local economy, plus a zero movement in Australia favour a pause. There is unlikely to be much impact in interest rates apart from short term fixed rates if the OCR drops. Longer term fixed interest rates have risen over the past week, with 5 year rates now over 8% for the main lenders, up around 0.5% in the week. 3 and 4 year rates have also risen, although not as much. This is all due to the increasing cost of longer term funds internationally, as banks and governments around the globe compete for a limited pool of funds. The kiwi has taken off against the US dollar, as international investors desire higher yielding currencies again. However, the cross rate has remained largely stable against our other trading partners, which is encouraging. (See below for latest interest and exchange rates). The Finance MarketsAs of 8am on Monday 8th June 2009 the following Interest Rates applied: Current Range of Interest Rates for home and investment mortgages as at 8 June 2009Floating: Fixed For: For a complete table of interest and exchange rates, click here. The information stated herein was correct at the time of release, but is subject to changes without notice. |
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