21 Nov The things you need to know about Credit Repair
Credit repair may be the light at the end of your bad credit tunnel.
When you have bad credit it has a serious impact on your finances. Even one negative listing on your credit report can remain there for up to five years. This makes trying to access finance extremely difficult; the loans you are approved for usually come with higher rates or you may not be approved for finance at all.
If you have bad credit it’s important to continue to manage and improve your finances to give yourself the best chance of being approved for a loan. If you’re considering enlisting the services of a credit repair agency, we will take you through everything you need to know.
Do you qualify for credit repair?
1. Have you had finance rejected recently?
- Were you seeking finance for a property or home?
- Do you have savings/deposit?
- Is there a possibility you have a black mark on your credit file?
Do I qualify?
Well, if you answered YES to 2 or more of this questions, you may need to get help from a credit repair expert
A quick guide to your credit file.
Your credit file is a detailed record of your financial history and is used by lenders to judge your ability to manage loans and repayments. Your file contains your personal information as well as any details of loans and credit cards you have held. This includes utility accounts and store cards. Since 2014, both positive and negative history has been included of your file, so lenders can get a more accurate representation of you as a borrower.
Lenders who hold an Australian Financial Services license are able to see any credit you’ve applied for, the date credit accounts were opened and closed, the limit of those accounts and whether you make your repayments on time over the last two years. Providers can also see defaults, missed repayments, bankruptcies, debt agreements, writs and summons, and court judgments. It’s these listings that credit repair agencies may be able to remove from your file.
You can order a free copy of your credit file and you will receive it within ten business days. You can also pay a fee to receive it online within 24 hours.
What is credit repair?
Many people believe credit repair involves paying to have any negative listings erased from your credit file, but this is not the case. Credit repair is the process of cleaning up incorrect listings on your credit file. The law surrounding credit is complicated, and because of this lenders sometimes list defaults or missed payments without properly adhering to the law.
Credit repair agencies use credit legislation to determine whether negative listings on your file were put there without a credit provider adhering to the relevant laws. Credit repair agencies are experts in the area of credit legislation and can spot these erroneous listings.