Spring has almost sprung – which is evident by the sunny weather spanning much of Australia today. We look at what this might mean for the housing market, and why this is the best time for people to get cracking on making sure their credit file comes up smelling like roses.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

Traditionally spring is the season where people dig out the clip-boards and the comfortable buying shoes and go get pre-approval for some serious house-hunting.

Spring is a great time to buy due to more property on the market – transfers; people planning for moving prior to the new school year; people with pools selling when it’s warmer; and homes generally look prettier in the spring – can contribute to this rise in good stock. And for the same reasons, more buyers can be available at this time, which potentially means more borrowers.

But RP Data’s Executive General Manager, Craig McKenzie told Australian Broker Online today that the 2012 spring selling season would be largely determined by levels of buyer confidence in the market place. He warned a lack of confidence would hamper activity.

“Until such time as there is a sustained recovery in the consumer mindset it seems unlikely there will be a vast improvement in sales activity,” he said.

The Housing Industry Association’s chief economist Harley Dale also echoed this belief.

“The consistently weak consumer confidence is weighing very heavily on new housing investment, far more so than is the case for retail expenditure,” he said.

“Combine that low confidence with very tight credit conditions and excessive taxation, and you have the unpalatable recipe for the recessionary conditions facing new housing.”

I would argue nothing exudes buying confidence like pre-approval for a home loan. But this thinking can sometimes see people come unstuck if they’re not careful. If people don’t know what is said about them on their credit report before they apply for finance – they will find out after. If the news is bad – if they have a bad credit listing there – this would mean they are refused credit, and would also have created a credit enquiry on their credit report. “Tight credit conditions” mean any blemish on the credit report – including too many credit enquiries – can see a person refused credit.

Most people think if they had any kind of black mark on their credit report they would know about it. But unfortunately “surprise” bad credit is pretty common. Bills and notices get sent to the wrong address; mistakes happen; listings are put there unfairly; or in some cases the wrong person cops the bad credit of someone else entirely. But if people apply for finance and their credit report comes back with nasties – the banks probably won’t be very understanding – they consider these blemishes require them to undertake too much ‘risk’ on the loan.

In most cases the best way to alleviate bad credit history bringing undone all the hard work and savings that have gone into getting a person ready to buy is by using the free yearly credit report to check that everything on their credit file is as it should be before applying for finance.

The very people who should be ordering a copy of their free credit report are the people who think their credit file should be returned clear. It only takes 10 days to receive it in the mail, but its piece of mind and ‘confidence’ to know that everything is as it should be.

No amount of “fast talking” or explaining will take back that credit refusal if it occurs. The only thing that will fix a bad credit listing is to address the credit listing at its source – with the Creditor and if it shouldn’t be there – request its removal.

But why should people use a credit repairer?

For people who have ever tried to call up and fix their phone troubles, they can be on hold for hours; they can be passed from one person to another; and in the end, still hang up dissatisfied. Clients say it is a similar situation when trying to dispute a credit listing.

Most times they are told (eventually) that listings can only be marked paid and cannot be removed. But this is not true. If a listing has been placed unlawfully on a person’s credit file, then it should be removed.

What it takes to negotiate the removal of a credit listing

• Ability to review pages and pages of documentation
• Ability to be patient and go through the proper channels to request documents and information
• Ability to build a strong case as to why a listing has been placed unlawfully based on client information crossed with relevant legislation
• Ability to negotiate directly with the people that matter within the company in question
• Knowledge of how to escalate a complaint when necessary, for the best outcome of the client

Working within the law, a professional credit repair firm gives people the best chance of completely removing bad credit which should not be there. This way, they can apply for finance with a clean slate – achieving the interest rate of their choice, and saving themselves thousands.

If someone is dreaming of white picket fences, the best way for them to confidently take charge of their “approvability” is to take charge of their credit file and what is says about them. With a clear credit file, they will be able to confidently apply for pre-approval, without stress, negotiating that best price on the house of their dreams.

To order a free copy of your credit file, or for more information about professional credit repair contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main site www.mycra.com.au.

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