Top Ten Credit Repair Tips
Top Ten Credit Repair Tips
Simply making an enquiry about finance with a “PayDay Lender” (i.e. Cash Converters, Nimble etc) can destroy your ability to get certain types of finance for up to five full years!
“Shopping Around” for finance can drastically lower your credit score and your chances for an approval. A good ‘rule of thumb’ is more than 4 finance enquiries in the last six months, or a maximum of six finance enquiries in the last 12 months is usually an ‘auto decline’ with many lenders.
Keep a close eye on what’s actually written about you on your credit files, as this makes up a very large part of your credit reputation. Check your credit files at a minimum every 12 months.
There are four Credit Reporting Bodies (CRB) in Australia and you may have a different Credit File with different information recorded about you with each one of them.
Creditors are ‘busy’ and it’s not unusual to see a default or enquiry on the wrong person’s credit file with the same or very similar name. So you might like to review the information on your credit files to make sure it actually relates to you.
Check and read your credit rating BEFORE you make an application for finance because a Large number of clients we help are referred to MyCRA Lawyers by their broker AFTER they’ve been declined AFTER they assured their broker that they had perfect credit ratings.
Ask your broker if they can help you get your credit files.
Many defaults are caused by not paying a bill you knew nothing about, and very often it’s because the creditor sent the bill to your previous address even though you told them you were moving. It’s a very good idea to advise your creditors in writing (by email) of your new address and the date you’re moving. Another helpful tip is to pay for a 6-month mail redirection at the post office to increase your chances of getting your bills.
You can lower your Credit Score simply by changing Address, changing jobs, making too many enquiries, making the wrong type of enquiry, being more than 14 days overdue on your payments, by being sued just or many other factors not disclosed by the CRB’s
A Default will automatically ‘drop off’ your credit file 5 years after it was added to your credit file UNLESS it is unpaid and upgraded to Serious Credit Infringement (SCI), also known as a clearout, which will stay on your credit file for 7 years.
Paying an SCI will see it automatically revert back to a Default with a maximum life of 5 years.
Click Here to download a very helpful one-page resource guide with a list of all four CRB’s so you can apply for your Credit files later
Bonus Tip 11
You Don’t Always Have To Wait!
If you’re a bit worried that you might have something lurking in the shadows and you really can’t wait for up to 10 days for your free credit files, then download and complete this form, return it so we can get your two main credit reports with your credit score, normally within 20 minutes.
We’ll even call you back and explain how to read your reports and what it all means in your specific circumstances.
Call 1300 667 218 for more information or to chat about your, or your client’s specific situation.