Credit card repair on your credit file
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