{"id":5229,"date":"2023-03-30T09:05:54","date_gmt":"2023-03-29T23:05:54","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5229"},"modified":"2023-03-30T09:05:54","modified_gmt":"2023-03-29T23:05:54","slug":"money-habits-that-may-raise-lenders-eyebrows","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/money-habits-that-may-raise-lenders-eyebrows\/","title":{"rendered":"Money habits that may raise lenders\u2019 eyebrows"},"content":{"rendered":"
Smart money management and cutting back on expenses can help your home loan application. That\u2019s no secret.<\/p>\n But a bit of measured discretionary spending can add a little spice to life. We\u2019re human after all. And lenders will see this as normal.<\/p>\n However, there are certain spending habits and types of transactions that can be a red flag to lenders. And these may hinder your chances of home loan approval.<\/p>\n Check out our list of potentially problematic spending habits below; avoiding them just might make all the difference when you apply for your next home loan.<\/p>\n There\u2019s nothing inherently wrong with using PayPal. It\u2019s often a convenient and safe way to make online purchases.<\/p>\n But many expenses that lenders may scrutinise, such as online gambling, and other unmentionable vices, use PayPal with vague descriptors.<\/p>\n This makes it easier to hide spending habits some may not want the world to know about.<\/p>\n And even if your PayPal spending is mundane, if the descriptions are vague, lenders may still raise an eyebrow.<\/p>\n Purchases through bank accounts on the other hand make it easier for lenders to see your spending habits when assessing your application.<\/p>\n It can be tempting to use a buy now, pay later (BNPL) service to splurge on a new outfit and leave future you to stump up the cash.<\/p>\n However, even though BNPL services aren\u2019t traditional credit products, they can still affect your credit score.<\/p>\n That\u2019s because when you apply for a BNPL service, there\u2019s a chance it may be recorded as an enquiry on your credit report \u2013 and these enquiries\u00a0may impact your credit score<\/a>.<\/p>\n Worse still, a few missed payments later and that purchase may not seem like such a hot idea \u2013 BNPL services can notify credit reporting agencies that you\u2019ve defaulted on a payment, leaving you with a blemish on your credit report.<\/p>\nWe all know being on our monetary best behaviour can help to land a home loan. But did you know there are common spending habits you may have that are red flags to lenders?<\/strong><\/p>\n
PayPal transactions<\/h3>\n
Buy now, pay later<\/h3>\n