Media Release: The end of the financial year is an opportune time for people to check their credit rating and get it in order, according to a national credit repairer.
Director of MyCRA Credit Repairs, Graham Doessel says if people are reviewing their yearly phone records, bank statements, and credit card statements for tax time, it can be a good idea for them to request a credit report as well from credit reporting agencies,to cross-check any adverse listings which may have been placed on their credit file.
“The problem with credit reporting in Australia is that many people are unaware of how the system works, and what their rights are. It is important for people to know they can apply for a copy of their credit file for free every year and the end of financial year is a great time to do this, because people already have their paperwork out,” Mr Doessel says.
He says it is essential for people to know what is said about them on their credit report – as there is opportunity for errors to occur when creditors apply listings to credit files. Even if people believe they have a good payment history, their credit report may still contain errors.
“Many of my clients have impeccable repayment histories and would have never dreamed they would end up with a default. Let me tell you mistakes do often happen. Sometimes simple human error by the creditor leads to adverse listings put there incorrectly,” he says.
A small scale study conducted by the Australian Consumer Association (now Choice Magazine) in 2004, revealed a staggering 30% of credit files were likely to contain errors.
“In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the report said.
A credit file exists for anyone who has ever been ‘credit active’ and is used by creditors to assess the risk and borrowing capacity of potential borrowers.
The most common type of adverse listing is a default. Defaults are put there by creditors when accounts have remained unpaid for more than 60 days.
Defaults remain on a person’s credit file for 5 years from the date of listing, and have the potential to severely impact a person’s ability to obtain credit.
“Currently, any default can be enough for an automatic decline with most of the major banks. Many lenders are even rejecting loans for excess enquiries such as two in thirty days or six within the year. Some people nmay even be unable to take out a mobile phone plan in their name if they have defaults on their credit file.”
“It also affects the type of home loan people may be eligible for, the interest rate they are offered and price of establishing the loan. The lending options become more expensive and limited” Mr Doessel says.
People can contact Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services (if they live in Tasmanoia) to request their free report. A creditor may have listed defaults with one or all of these credit reporting agencies.
If people find errors, or feel a listing is unjust or shouldn’t be there, they do have the right to have incorrect information rectified.
Mr Doessel says if people are in a hurry or it seems too difficult, they can use a credit repairer who can work on their behalf.
“A credit repairer should be able to completely remove offending blemishes from someone’s credit file,” he says.
Contact www.mycra.com.au for more details on how to check and repair credit files.
/ENDS
Please contact
Lisa Brewster – Media Relations
Ph: 3124 7133 Mob: 0450 554 007 media@mycra.com.au
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