The Australian Bureau of Statistics recently released statistics on lending finance for the month of July . These statistics show a slow but steady increase in lending committments, when compared with the relatively flat June statistics:
JULY KEY POINTS
JULY 2011 COMPARED WITH JUNE 2011:
HOUSING FINANCE FOR OWNER OCCUPATION
The total value of owner occupied housing commitments excluding alterations and additions rose 1.5% in trend terms and the seasonally adjusted series rose 1.4%.
The trend series for the value of total personal finance commitments rose 1.1%. Fixed lending commitments rose 1.1% and revolving credit commitments rose 1.1%.
The seasonally adjusted series for the value of total personal finance commitments rose 0.5%. Revolving credit commitments rose 3.9%, while fixed lending commitments fell 2.3%.
The trend series for the value of total commercial finance commitments rose 0.9%. Revolving credit commitments rose 2.2% and fixed lending commitments rose 0.3%.
The seasonally adjusted series for the value of total commercial finance commitments rose 6.1% in July 2011, after a 6.1% fall in June 2011. Revolving credit commitments rose 13.4%, after a 7.8% fall in the previous month. Fixed lending commitments rose 2.7%.
The trend series for the value of total lease finance commitments fell 1.3%, while the seasonally adjusted series rose 3.4%.
Australian Broker News says the rise in commercial lending was foreseen by Jonathan Street, executive director of commercial lender ‘Think Tank.’ He predicted “pent up” demand for commercial credit would “release” at some point this year.
While finance committments are on the rise, experts say credit debt is not. There has been a big trend towards direct debit cards – showing Australians are preferring to spend their own money rather than pay credit for things and some say points to people reigning in debt and focusing on saving. According to finance commentators Switzer, there has been a sharp fall in credit card debt. Statistics show purchases made on debit cards were up by 18.9 per cent on a year ago, while purchases made on credit cards rose by just 1.9 per cent.
What is evident, is the slow increase in lending figures. This demonstrates that banks are still wary about who they lend money to. It also shows that consumers are being wary about what they borrow money for. But housing finance still seems to be a priority for many Australians.
With banks still cautious, there still appears to be a great need for a clear credit rating in the current market. Prospective home owners should ensure their credit file puts them in the best position for obtaining a mortgage. They should do a credit check, and ensure their credit report comes back clear.
If people do find their credit report reveals some black marks, they should consider whether they are candidates for credit repair.
People should be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error. So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.
It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be. Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID. For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 years (the term of a
For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.