The PRWIRE Press Releases https:// 2017-06-26T10:15:18Z Millennials Need Credit Education to Avoid Bad Rating 2017-06-26T10:15:18Z millennials-need-credit-education-to-avoid-bad-rating Millennials are unwittingly ruining their credit score and costing themselves thousands by making multiple loan applications, according to broker 1800Approved. 1800Approved Director Rodney Michail says Australia has an 'outdated' credit system, with lenders obliged to 'mark' an applicant's credit file each time they apply for a loan, regardless of whether they proceed with the loan. Mr Michail says he has seen a number of millennials - those born between 1980 and 2000 - who think they have been savvy by comparing lenders, but have inadvertently reduced their credit score with multiple applications. He says unlike Australia, most advanced economies do not mark credit files until the loan is accepted, and applicants are then judged on their ability to meet repayments. "There needs to be better education for young people around how our credit system works and how they can avoid ruining their credit rating by making simple mistakes like this," he said. "For example, I recently had one young client who had applied for a loan online with four banks in one day and by the time he met with us, his credit score had suffered significantly. "His lower credit score, as a result of his online activity, meant he was deemed 'high risk' and therefore he was potentially looking at an interest rate around 4 per cent higher than an applicant with a better score. "We managed to help him get a better deal, but the best outcome would have been avoiding the reduction in his credit rating in the first place." Mr Michail says people can still do their research without affecting their credit rating. "A licensed broker, like 1800Approved, is able to place a 'soft' footprint on the applicant's file and check borrowing capacity with multiple lenders without impacting the client's credit file from the outset," he said. "The popularity of online shopping, and the relative ease of obtaining credit online has led to problems with the aspirational younger generation. Many of these people want to do the right thing, and may have a good credit rating if they avoid making multiple applications." "It doesn't look like our credit system will be reformed in the near future so education is the answer if we want the next generation to approach credit applications in a responsible manner." For more information, visit www.1800approved.com.au 1800Approved Finance Solutions 33 Ereton Dr. Arundel, QLD 4214 1800277768 Why The Economic Stars Are (Almost) Perfectly Aligned For New Car Buying 2014-07-15T05:15:30Z why-the-economic-stars-are-almost-perfectly-aligned-for-new-car-buying If you’re interested in buying a new car, we’ve got good news and some more good news. The good news is that this is the perfect year for Australians to buy a new car, according to the predictions of independent Australian automotive industry expert John Cadogan. He’s not an astrologer, but at the start of the year, Cadogan, Channel 7 Sunrise's motoring expert, described 2014 as the “perfect storm for car buyers”. Why? First, he stated that despite the threat of recession, the Reserve Bank of Australia would remain nervous of cutting interest rates. This year’s low interest rates, which are still at 2.5% cash rate in July, are extremely good news for buyers seeing car finance. Second, John pointed out that earlier rate cuts would make borrowing easier, freeing up more disposable income. Well, that’s certainly good news for the new car industry in Australia. Now for the less positive prediction. John pointed out that 90% of new cars sold in Australia are imported, and that the slightly lower dollar would lead to a mid-year increase in imported car prices. And so it has. But thankfully, the positive far outweighs the negative, and there’s still time for you to benefit. We think John Cadogan’s predictions from January 2014 have been pretty spot on. From our mid-year perspective, interest rates are still low, and are attractive enough to offset the slight rise in prices. And with fixed rates and terms of 3, 4 or 5 years available, the benefits of buying a new car now are better than they’ve been for years.