There is wrong information on my credit report. What do I do?

There is wrong information on my credit report. What do I do?

Credit file information

So what do you do when your credit report has the wrong details in it? Firstly don’t panic.

You would be surprised at how many Australian consumers have some sort of wrong information on their credit report.

If you have found a recent copy of your credit report shows incorrect information in it, do not be immediately alarmed.

Go into repair mode, not panic mode.

This is not unusual so do not think you are considered “bad” because part of your credit file is wrong.

Firstly gather your identification such as drivers license. Make sure the ID shows exactly what should be displayed on your credit report.

Next contact the credit reporting bureau online. Not by phone because you need a track record of your actions or a foot print that they can see, just in case you need to follow up the credit reporting bureau which is also not uncommon.

Submit your online request and clearly and accurately outline the specific issues in point form. Write your request as if dealing with dummy’s. Make it easy enough to read for anyone.

Supply the required credentials and ID which may be requested of you.

Importantly do everything the way they request and do not change it to suit you.

This is the fastest and free way to correct your credit file. Having a clear and correct credit file is critical to successful finance. Don’t dismiss an error as minimal or it may cost you!

Look at what banks focus on when reviewing your credit report in this article.

What is a payment default? Are overdue debts the same?

What is a payment default? Are overdue debts the same?

Credit repair services

Payment defaults or overdue debts are entries on your credit history which affect your chances of obtaining credit. The following is basic info to help answer What is a payment default

Payment defaults are also called overdue debts. These entries are different to late payment data on your report.

Removal of payment defaults is possible in certain cases but a thorough understanding of relevant guide lines and law make chances of removal much better. Always seek the advice of a solicitor who specializes in payment default matters.

A credit provider must carry out certain steps before listing a payment default. This can include overdue notices to your last known address which states that the debt may be listed with a credit bureau such as D&B or Equifax.

A payment default is more than $150 and is a minimum of 60 days overdue. This can relate to bank loans, credit cards, utility bills or leases in a consumers name.

Avoid being late with any payments and this will prevent payment defaults on your credit report which can blow your chances of obtaining the credit or finance you want. In most cases credit providers will list payment defaults regardless of your story or excuse for being late with a payment over 60 days.

Commercial defaults are a different category on your credit file and relate to business debts. These must be at least $100 but don’t necessarily have to be 60 days overdue as trade accounts have different terms to consumer finance.

Payment defaults stay on your credit report for five to seven years regardless of paid or not.

You can have your credit report assessed for any payment defaults if you think an entry has been placed.

Can I clear judgments from my credit file?

Can I clear judgments from my credit file?

Credit file information

How do I clear judgments from my credit file?

Many consumers are faced with this question when it comes to credit report issues. Is it possible to clear judgments from my credit file?

Clearing judgments is possible under certain circumstances. But it doesn’t always work, especially if not done correctly.

Each state or territory in Australia has its own jurisdictional court rules to be followed.

Cooperation from the listing creditor is also required to successfully clear judgments from your credit file.

Previous procedures from around two years ago no longer work, in fact they ruin your chances of clearing judgments from my credit file.

Equifax, formerly Veda, no longer accept a notice of discontinuance files at court to clear a judgment.

Too many consumers read this dated procedure within online articles in an attempt to clear a judgment from their Veda Equifax credit report.

In fact this discontinuance procedure now permanently closes the matter in court which eliminates the possibility of filing the correct documents.

This is where seeking assistance of a solicitor who specializes in credit reporting law is so valuable.

Solicitors trained and up to date with credit reporting law and associated court procedures know what is required to successfully clear a judgment from your credit file.

Given the consequences or doing more damage than good if you get it wrong, it pays to get it right the first time using a professional, so long as the agreement of service is “no win – no fees”. Never pay money upfront.

Simply provide a copy of your credit file to receive a free quote on what may be possible.

Credit card repair on your credit file

Credit card repair on your credit file

Credit file information

Is credit card repair possible on your Equifax credit file in Australia?

In today’s day and age credit card applications are part and parcel of almost every consumers’ financial behavior at some point in time, but for some people excessive applications can lead them in search of credit card repair which may not be possible, ultimately leading to disappointment.

Credit card applications are fine if carried out in moderation however the lure of a line of credit is just too attractive for some people and the number of attempts to obtain a credit card can have adverse implications on your credit history.

Yes it does get to the stage where some consumers end up seeking services for credit card repair in the hope that their excessive applications can be trimmed down on their credit report. But that is where issues can crop up.

Firstly understand that lenders look at many aspects of your credit report and also the aspects of information you provide them with when applying for finance or credit. Lets examine what lenders focus on in the application section of your credit file.

Applications on a credit file in Australia stay on file for five years. However lenders are more concerned with the more recent applications as they reflect more accurately your financial shopping pattern. This gives them an idea of how often you have been applying for credit and in turn an idea of your “need for credit”. Normally they focus on the last two years but not limited to that.

Obviously when a lenders sees excessive applications for finance on a credit file they form the opinion that you may be desperate for funds. That in turn can lead them to believe that you may not be altogether responsible with your ability to restrain yourself and spend sensibly and responsibly.

So what is an excessive amount of applications on your file ? The answer to that will also depend on the type of applications such as mortgage, personal loans, credit cards, auto finance or fast money loans. Three secured mortgage applications can be fine where as three credit cards may not!

Without doubt fast money loans are the worst to have on your credit file. They are the type that offer same day loans with ultra high interest rates over a short repayment period. Avoid applying for them at all costs as even one of those applications on your credit file can lower your credit score dramatically.

Then next worse would be credit card applications. It is normal to have one or two over a five year period but any more indicates to a lender several things which they perceive as negative, thus reducing your chances of getting finance approved.

Multiple credit card applications could indicate you have maxed out your current cards and you need more quick cash. Naturally this is a killer on your credit history. Multiple applications can also mean that you are in the need for fast unsecured cash, another indicator that you may not be good with your finances.

And once these entries are on your file it is mostly too late to think credit card repair is possible. Applications are unlike defaults or judgments on your file as they cannot be disputed unless duplicate or fraudulent. The lender normally retains a copy of your application and where it has been submitted from so thinking you can simply tell them “it’s not mine” will not work. Unless of course it truly is not yours.

Claiming you applied for your ex partner is useless also. Lenders do not care what you have applied for in your name for your ex. Forget that one straight away.

Any credit repairer claiming to credit card repair or remove credit card applications which you know are legitimate are stringing you along and will more than likely be asking for your money upfront. BEWARE and never pay for this as a claimed service.

Credit card repair is almost always impossible when it comes to removing applications from your credit file. Defaults and judgments are a different story. Read more on default removal.

more on too many credit card applications

Credit checks and Banks – What do lenders look for ?

Credit checks and Banks – What do lenders look for ?

Credit Check

How are Credit Checks and Banks or lenders associated?

In simple terms, what does a lender look for on your credit history and how do they do it. The relationship between credit checks and banks.

This post only looks at what characteristics a lender looks at on a credit file and does not look at remedies. The purpose of this article is to provide a brief insight into how and what a lender looks at on your credit file.

Firstly let’s look at who accesses your credit file when they conduct a credit check. Credit providers are the organizations who leave a foot print on your credit history when ever they login in and access a copy. Credit providers include banks and other non bank lenders, utility providers for services such as electricity & gas and Telcos for any contractual phone or internet services.

The most common and frequent to access credit files is by far the banks. Every time a consumer or organization applies for any type of finance the banks will certainly conduct a credit check and access the applicants credit history.

In Australia when it comes to credit checks and banks, it is mostly the big four banks and they are mostly accessing your Veda Equifax credit file. Credit providers have accounts with Veda Equifax and obtain your file online with your permission.

Here’s what they look for;

 

1. Any sign of late payments.

This information is a somewhat recent addition which banks now add to credit files showing the payment history on current lines of credit, especially credit cards. Although a late payment is not considered a default it is still not great when it appears and consequently lowers your credit score.

 

2. Credit score.

This is a numbered score Veda Equifax provide on the credit report which is based on aspects of your credit file compared to the rest of the Australian population. Some lenders rely upon a “score” more than others in their process of deciding if finance is to be approved. Be aware that the score alone does NOT determine the outcome of an application. It is only an additional tool for lenders which helps them assess you.

 

3. Defaults or court actions.

These are by far one of the worst item to appear on your credit file. In relation to credit checks and banks there is not a lot worse than having default appear. Defaults and court actions greatly reduce your credit score and in many cases automatically veto you from having finance approved. Sometimes these can be removed but that is discussed in other areas or websites such as www.fixbaddebt.com.au

 

4. Bankruptcy entries.

Absolutely the most harmful entry that can appear on a credit file. So bad in fact that Veda Equifax don’t even issue a credit score once a bankruptcy entry is present. Full bankruptcy or debt agreements such as part nine’s all appear under the same section on a credit file reserved for any bankruptcy related info. Such entries almost guarantee a decline in approval for any type of finance or credit. These cannot be remove early by anyone or any service.

 

5. Applications.

Your credit application history is reviewed by banks and credit providers in order to assess your “shopping pattern” when it comes to finance. It also has an effect on your Veda Equifax credit score. Too many applications can be harmful. At the same time having no applications in the last five years does not contribute to a great score as essentially you have no “shopping history” so a lender cannot gauge your movements if there are none there!. The type of applications are important also. Too many applications appearing with fast money or payday loans is adverse and reduces your credit score. When it comes to credit checks and banks, avoid all fast money applications. Also minimize the amount of credit card application you make as they can be viewed as another source of fast money in some circumstances.

 

6. Accurate and consistent credit file information

that matches the information on your finance application. Any anomalies such as spelling errors, address or employment discrepancies, incorrect date of birth, license numbers etc are not favorable if they don’t all match up. Get a copy of your credit file before making an application and make sure everything is correct and consistent. It’s that simple however many people don’t bother doing it.

There are other aspects of a credit file a lender will look at but these are the primary ones listed above.

Understanding how credit checks and banks work together can assist you in preparation for successful outcomes in finance applications. As they say, Knowledge is power !!! Good luck.

If required you can conduct a credit file assessment by following this link – “Credit Check Now” or read about default removal on this page “Removing Defaults”

Author – Mark Agar. 24 years experience in loans and credit card receivables, credit file reporting/assessment and analysis.