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.

Identity theft

Identity theft

Credit repair services

What is identity theft?

Identity theft occurs when criminals use stolen or assumed identities to commit fraudulent activities such as finance applications in your name!

It can also involve creating a new identities, false identity, or using stolen personal details to impersonate someone else.

Criminals use your identity with details such as your name, date of birth, and address. If your identity is stolen it can take years to fix given the complex legal systems in place in Australia. No government agency or police department rushes these matters when investigating, regardless of your needs.

Once identity theft has occurred you may have additional problems such as employment, finance or renting/buying a house.

Identity theft criminals look to steal these type of details and items from you:
Purses, wallets, mail or mobile phones
Looking for personal details in mail left in rubbish or letter boxes.
Obtaining your tax file number during a bogus recruitment process.
A very obvious one, reading what you have shared on social networking!
Pretending to be from a bank offering assistance for completing personal documents.
Websites baiting you into clicking a link or attachment on a web link or email that captures your details.

There are many other uses and reasons criminals partake in identity theft, but the overriding motive is for financial gain.

How can I check if someone has ever used my personal details for a credit application?

Your credit history is a track record of applications amongst other things.

Checking your credit rating regularly ensures you are informed if anyone has tried to use identity theft as part of a finance application in your name.

For a small cost each year it is well worth keeping tabs on your credit file activity. You insure your house or car, why not protect your name and identity?

Never give your personal details to anyone soliciting products or services and only ever give your personal details to trusted sources which you have sought.

It may also pay to keep records of whenever you have provided your personal details to anyone at any time. That way you have a complete list of who your details have been disclosed to and, in the unfortunate event of identity theft you can provide police with this list which would prove to be invaluable for them in eliminating certain elements of an investigations.

If you feel you have been a victim of identity theft click here for the Australian Federal Police site which is extremely informative and directional for victims of such theft.

 

Credit Application Fraud

Credit Application Fraud

Credit repair news

Credit application fraud on the rise in Australia.

A compilation of recorded and acknowledged fraud events throughout Australia during the years 2012 and 2013 has shown an increase of credit application fraud by 27%.

This data comes from Veda, Australia’s largest credit reporting agency who has access to several forms of confirmed credit application fraud data.

There are four sections of credit application fraud which are  1) false personal details,  2) fabrication of identity,  3) identity takeover and 4) undisclosed debts.

Of these four areas identity takeover grew the most with an staggering increase of 103% from 2012 through to 2013.

Veda believes that ABS figures show that this fraudulent activity costs Australian businesses around 1.4 billion per year.

Naturally this cost is not going to be absorbed by all businesses, especially banks, and will be factored into the end cost of products and services to consumers. So in the end we all pay as consumers for the actions of credit application fraud.

It is claimed that part of the explanation of this growth in credit application fraud is the growth in technology and how criminal minds are using as much to their advantage. Criminal activity must be savvy to survive and will adopt any new tools of trade it can acquire for their devious purposes.

Just to put things in perspective, back in 2007 identity take over accounted for around one quarter of all identity fraud in Australia. Now in 2013 it accounted for around 90% of all identity fraud! Yes technology has come along way and unfortunately dragged bad elements along with it.

Naturally financial institutions need to increase their security measures within technology in order to limit growing number of credit application fraud incidents. It is essential if the channels used by criminals are to be tightened up and staying on top of fraudulent behaviour and tactics.

If you believe you are ever the victim of credit application fraud, immediately contact any lenders or credit providers whom you are subscribed to and advise them. Next thing is to have your Veda file assessed to check for unauthorised activity. This can be assessed within one hour on our site by clicking here. You’ll then want to seek legal advice or contact the police.

 

Disputing debts and the Ombudsman

Disputing debts and the Ombudsman

Credit repair services

Disputing debts listed on your credit history with any office of the Ombudsman can be very frustrating.

First of all you view a copy of your credit rating which will normally be your Veda file.

Then you notice there are “defaults” or “court actions” listed on it !

Immediately you experience a level of panic or anxiety which naturally varies depending on the individual.

After sitting down and deciding you may opt for the rational approach, frustration can then set in.

Where do I start when I think I have an incorrect listing on my file ?

When disputing debts you can attempt to utilise all resources at hand openly available on the internet and decide that you will educate yourself in guidelines and law relating to removal of defaults. This can be the frustrating option naturally because you do not do it for a living, so it is only reasonable that you may not understand or know what to do or where to start.

One of the more reliable end result options for disputing debts is to entrust the services of a reputable credit repairer.

By reputable we mean a group who is transparent, has no valid or derogatory complaints listed against them and someone who does not charge unless they get the job done.

When disputing debts a professional credit repairer should know all current legislation and guidelines relating to default removal, which organisations to deal with and how to get you the best end result for removal of black marks from your credit file.

Consumer advocacy groups do not endorse credit repair companies for disputing debts because it agitates them when you can sometimes do something yourself, but then employ someone else who can do it better for you as a profession then charge you accordingly. It’s a bit like going to court, sure you can try yourself or you can hire a lawyer. Normally the lawyer gets the better result because he/she knows what they are doing and the best approach for your case.

Yes we do deal with all offices of Ombudsman and dispute resolution centres when disputing debts.

Dealing with an office of a particular Ombudsman can not only be time consuming but down right frustrating when disputing debts on your credit history.

First of all there is the perception amongst the public that you will have some type of “private advocacy group” fighting your battles for you when you seek assistance from an Ombudsman or DRS.

Let’s be very clear on this – you must have an idea of what is and is not permissible if you are going to get a positive result through an Ombudsman or DRS.

These groups are not paid on a “no win, no fee” basis and quite often you stumble across the old public service attitude which unfortunately exists still in some offices. It can be hard to feel someone is on your side when you go it alone with these groups.

For example, Let’s say you go to an office of the Ombudsman and tell them you have a default listed two years ago but you have only just noticed it last week when you got your credit file, and you had been disputing the debt for two years with the creditor. You are more than likely going to be told that it is “out of their jurisdiction” because you have known about it for more than 12 months.

This is just one of many criteria we use for this example. Imagine the dozens more you should be aware of so as not to get rejected when applying for assistance!

On a regular basis we deal with departments structured to deal with individuals who are disputing debts.

We know the correct procedures for making applications most effective when disputing debts on your credit file.

Your case has to be put together to give you the best possible chance. You normally only get one crack at it when dealing with these organisations. Why risk stumbling through un chartered territory on your own?

When we deal with these groups we do not charge our clients on any hourly basis, nor do we charge a fee specifically for liaising with these groups. Our single success fee is outlined and agreed upon in the beginning before any work is started. If an Ombudsman or DRS is required then we will cross that bridge when and if required as part of our service.

Some of the many Ombudsman and DRS groups we deal with on a daily basis are FOS for banks , COSL (now AFCA) for other lenders , TIO for phones , and various groups for utilities in each state such as NSWQLD , VIC , TAS , WA . These are only some of the groups we deal with for our clients. As you can already see it can be confusing when deciding where to start.

If you would like free advice on where to start disputing debts or simply to discuss any aspect of your credit history, feel free to call our office on 02 5809 8275 or email us.

Our friendly staff will assist in any way we can and you will not be badgered by us for any other unwanted services. Yes we do help free with advice and only recommend our services if they appear needed in disputing debts on your credit file.