Tag: Australian Bureau of Statistics

ABS Housing Finance March 2014: The brakes are lightly on

The Australian Bureau of Statistics (ABS) has released Housing Finance figures for March 2014. The number of commitments for owner occupied dwellings reveal growth has taken a slower pace despite differing predictions from economists. We take a look at the ABS Statistics and what they might mean for the Australian housing market, as well as approvals.

By Graham Doessel, Non-Legal Director, MyCRA Lawyers www.mycralawyers.com.au.

The number of home loans approved in March fell 0.9 per cent, weaker than economists’ expectations of a 0.5 per cent rise.

Australian capital city house prices continued to rise in the March quarter, by 1.7 per cent, softer than the 2.9 per cent rise economists were expecting.

“We saw very, very solid growth in Sydney and Melbourne, and most other major property markets, and what we’re seeing now is a pull back,” JP Morgan economist Tom Kennedy said in the West Australian today.

“Over the past few months, there’s been quite a slowdown and deceleration from the euphoria that we saw in the second half of last year.”

But that growth had been unsustainable, Mr Kennedy said, and “prices are now growing at levels that are perhaps more sustainable over the long term”.

Here’s the ABS data for Housing Finance March 2014:

MARCH KEY POINTS

VALUE OF DWELLING COMMITMENTS

March 2014 compared with February 2014:

The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.2%. Investment housing commitments rose 0.4% and owner occupied housing commitments rose 0.1%.

In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 1.1%.

NUMBER OF DWELLING COMMITMENTS

March 2014 compared with February 2014:

In trend terms, the number of commitments for owner occupied housing finance fell 0.1%.

In trend terms, the number of commitments for the purchase of new dwellings fell 1.4% and the number of commitments for the purchase of established dwellings fell 0.3% while the number of commitments for the construction of dwellings rose 1.7%.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 12.6% in March 2014 from 12.5% in February 2014.

The housing market and bad credit

What happens to people who have bad credit? When they are refused a mainstream loan because of bad credit, but market confidence is high – when it is moving up – they may not think twice about choosing a high interest rate loan in order to take advantage of an increasing market. This comes at a price though – a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan. But if the market is going up rapidly – a potential buyer may see it as a viable option.

When confidence is low, or when the market is fairly static, they may not be so keen – they may simply choose not to buy rather than pay the extra in interest.

Many of the people that currently have negative listings on their credit file may be living with bad credit history unnecessarily. Rather than miss the opportunity to buy because there is no urgency to buy, because they would rather save that $15,000 – there is another option – to actually assess whether they would be suitable to have their credit listings disputed and ‘repaired’.

To find out how more people can remove their bad credit history – opening doors to lenders that were previously unavailable – contact MyCRA Lawyers on 1300 667 218.

Image: Idea go/ www.FreeDigitalPhotos.net

14/05/2014
Credit ‘blemishes’ contribute to first home buyer slump

Press Release

Credit ‘blemishes’ contribute to first home buyer slump

16 May 2013

First home buyers eager to buy property are plagued by credit blemishes, according to a national credit repairer, who argues bad credit has as much of an impact on first home buyer numbers as lack of market confidence.

CEO of MyCRA Credit Rating Repair, Graham Doessel says latest figures from the Australian Bureau of Statistics (ABS) showing first home buyer numbers remain low despite other parts of the market moving up are a testament to the challenges faced in obtaining credit under tight lending conditions.

“First home buyers can have difficulty obtaining credit in this market as they are probably the least educated on the ways their credit rating can be diminished and most active with credit habits which can reduce their credit rating,” Mr Doessel says.

Official Housing Finance figures released by the ABS on Monday show in original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 14.2% in March 2013 from 14.4% in February 2013 – despite falling interest rates.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

Mr Doessel says there are some credit habits which can reduce any credit rating.

“Excess credit enquiries, multiple personal loans and negative credit listings can be detrimental and first home buyers may not realise the impact these decisions will have on their home loan application in the current market until it’s too late,” he says.

He says some are also finding default listings on their credit file they had no knowledge of.

“Paying your bills on time should, but doesn’t always guarantee a clear credit file. As credit repairers, we see a multitude of instances where the Credit Provider has made a mistake and put a default or other listing on the consumer’s credit file when it shouldn’t be there,” he explains.

The credit habits of Australia’s young people, who may make up the majority of what should be ‘first home buyers’ was recently revealed in a report from credit reporting agency Veda Advantage.

The report showed the number of credit defaults amongst Gen Y had grown 5.3% over the past three years to 60% of the share of all credit defaults.[ii]

“We are seeing more of Gen Y lumbered with 5 years of credit defaults – unable to even get a mobile phone plan let alone a home loan,” Mr Doessel says.

He says there are 5 things first home buyers should be aware of before they apply for a home loan:

1. Only apply for credit you have full intention of pursuing. Currently there is no way of seeing if the loan you applied for was approved or not, only that the application was made. Some lenders are refusing home loan applications due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

2. Reduce personal loans or ‘high interest’ loans before applying. Even if you are meeting all of your repayments well, too many high interest loans, credit cards or personal loans may reduce your credit rating.

3. Reduce credit limits. If you have a credit limit of say $20,000 on your credit card, the debt amount on that card will be calculated on $20,000 – even if the actual amount you have owing on that card is only $5,000. So if you are going to take out cards or lines of credit, seek to set a credit limit nearer to what you need.

4. Order a copy of your credit report. Anyone has the right to request a copy of their credit file, to see what is being said about them. If you are not in a hurry, it can be requested at no charge from Australia’s credit reporting agencies, and mailed to you within 10 working days.

5. Clear up mistakes. There is the potential for creditors to make mistakes when entering listings on credit files. These mistakes range from out and out unfair listings right through to incorrect notices provided, wrong addresses and simple human or computer error. It’s a good idea to sort out any disputes well before you apply for a home loan.

“Currently, listings are not removed unless you can provide adequate reason and evidence as to why the listing has been placed unlawfully on your credit file, so it is important to be well educated on credit law when dealing with issues around your credit file, or to employ someone who is,” Mr Doessel says.

/ENDS.

Please contact:

Lisa Brewster – Media Relations media@mycra.com.au

Graham Doessel -CEO Ph 3124 7133

http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Ph: 07 3124 7133

MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

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[i] http://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0

[ii] http://www.veda.com.au/news-and-media/article.dot?id=542009

Image: Stuart Miles/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

16/05/2013
Could a spike in credit defaults from Gen Y be part of the housing crisis?

Press Release

Could a spike in credit defaults from Gen Y be part of the housing crisis?

13 March 2013

More of Australia’s new generation of first home buyers are living with credit defaults and a consumer advocate for accurate credit reporting says this could be a contributing factor in Australia’s dim first home buyer figures – with Gen Y facing credit lockdown in increasing numbers.

According to a recent report from credit reporting agency Veda Advantage, the number of credit defaults amongst Gen Y has grown 5.3% over the past three years to 60% of the share of all credit defaults.

Veda says Gen Y has the lion’s share of defaults across all account types – telecommunications, credit cards, utilities and personal loans. The biggest pain is telco bills – with Gen Y responsible for 62% of these kinds of defaults, compared to Baby Boomers (13%) and Gen X (22%).[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

Figures released yesterday by the Australian Bureau of Statistics confirm first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 14.9% in December 2012 from 15.8% in November 2012.[ii]

CEO of MyCRA Credit Rating Repair, Graham Doessel says goals for owning property may be far out of Gen Y’s grasp.

“The older portion of Gen Y should be collectively entering the property market, but it seems more are suffering with 5 years of credit defaults and unable to even get a mobile phone plan let alone a home loan,” he says.

Mr Doessel says education and advocacy is the key to helping Gen Y out of the credit crunch as he says they are only a product of the credit environment they were born into.

“There is a real lack of education around credit issues and credit reporting and this has been a problem for some time. Many Gen Ys had credit thrown at them in their younger years pre -GFC and now they are feeling the ramifications of credit overload.”

“On the back of this, has been a noted lack of consistency in credit reporting and this has led to a number of inaccurate and unfair credit defaults placed on consumer credit reports. It is high time that consumers and their advocates insist on accurate credit reporting if we are going to have any chance of moving the housing industry forward,” he says.

Find more information on credit issues and credit defaults on MyCRA’s website www.mycra.com.au.

/ENDS.

Please contact:

Lisa Brewster – Media Relations media@mycra.com.au

Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

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[i] http://www.veda.com.au/news-and-media/article.dot?id=542009

[ii] http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main%20Features2Dec%202012?opendocument&tabname=Summary&prodno=5609.0&issue=Dec%202012&num=&view=

Image: photostock/www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

13/03/2013
Financial freedom: are you self-sabotaging?

In today’s ‘Make Credit Work For You’ post, we look at advice from the Editor of Smart Investor magazine, Nicole Pedersen-McKinnon. Her article “Financial freedom: are you self-sabotaging?” was featured in Sunday’s Sydney Morning Herald. Nicole gives you some excellent advice for how to make the best of your money, and make sure you are not making basic mistakes that could see you taking longer to reach your ultimate financial goal of being debt-free.

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

Financial freedom: are you self-sabotaging?

IT’S likely the people around you know whether you’ll ever ”make it”; that is, make and keep enough money to secure the life you crave. They’ll know this simply by observing your behaviour. And they’ll know it quickly.

If you’re game, ask their opinion to see if they squirm.

The wrong attitude to your cash – leading you to do the wrong things with it – indicates a ticking financial time bomb. Here are the mistakes that will lead to an explosion:

■ Missing the (second) once-in-a-lifetime opportunity to repay your mortgage fast and save a fortune. Official interest rates have returned to the record lows set during the credit crack-up, and home-loan rates have plunged about 4 percentage points. Say they hypothetically stayed here and you hadn’t ever reduced your repayments, the extra $700 or so you would be contributing to a $300,000 mortgage would save you $118,000 and almost 11 years.

■ Keeping lazy savings. There is no excuse for holding money in low-interest savings accounts. You should be getting about 5 per cent (taxed) or, better still if you have a mortgage, an effective return of about 5.5 per cent (tax-free) by sticking it in there.

■ Not grabbing gifts such as government allowances, benefits and super giveaways. The big ones you need to apply for include first-home buyer concessions, family tax benefits, baby bonuses or paid parental leave, childcare assistance and the super co-contribution.

■ Falling into the yawning traps set by finance companies. The largest are making new spending on 0 per cent balance-transfer credit cards – this will be charged at an eye-watering interest rate. If you are ahead on mortgage repayments, then taking up a thoughtful offer to reduce your repayments is designed to recoup the lender’s lost interest. Also, if you breach the conditions to get the headline rate on savings accounts, you will lose out. You must hit the monthly requirements or the institution wins.

■ Staying out of the sharemarket, perhaps in favour of cash or bonds. Yes, the credit crack-up was confronting but you need growth assets such as shares and property to reach your goals. The key is to balance these with more stable, income-producing assets. The fortunes of markets can turn on the head of a pin – witness the 20 per cent share recovery in the past year – and you need to be invested to benefit. Remember this applies to your super, too.

■ Over-leveraging. Heed the main lesson of the global meltdown and use investment debt sensibly: limit it to an appropriate amount and have the means to cover it if a market turns hostile.

And the big one:

■ Year after year using credit to spend more than you earn. This short-sighted behaviour has the greatest potential to sabotage your future. To be a financial success you don’t need to be particularly clued up, but you can’t be clueless, either.

The last point might seem simple, but it can be tempting to bury your head in the sand about what your incoming finances actually are, and live your daily life on credit, spending more than you earn.

This thinking isn’t limited to those with a low income. In fact, Australian Bureau of Statistics reported late last year that spending more than you earn can occur across every level of income.

“One in seven Australian households is spending more than it earns, as the working poor struggle with monster mortgages and surging power bills.

Nearly 8 per cent of the nation’s richest households were living on credit, the Australian Bureau of Statistics reported yesterday.

Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10.

Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned,” it was reported in news.com.au in the story News.com.au ‘Aussie strugglers living beyond means’.

And the end result can be the same. People can bomb out with their finances at every level. And Creditors don’t care what your income is when you’ve defaulted on your credit, only when and how you intend to pay.

If you have over-extended yourself – even if it hasn’t yet made it to default stage – act now to reduce that debt. Make a plan – find a good financial counsellor (call ASIC’ financial counselling hotline on 1800 007 007 for a reputable one) – and make some tough decisions about your life. By all means necessary, avoid that default or any other impairment to your credit file.

What Ms Pederson-McKinnon didn’t mention, is another way you could be sabotaging your own financial freedom – by living with defaults on your credit file that shouldn’t be there. A default on your credit file will give you 5 years of blacklisting from mainstream credit, meaning if you need credit during that time you will be paying thousands more (on an average home loan tens of thousands more) in interest over the term of the loan.

By having your credit file reviewed by a credit repairer to check your suitability, you may find you are one of those lucky ones that is able to have their credit default removed. This process happens legitimately and legally by people who are experts at auditing your Creditor for compliance issues which can deem your credit listing unlawful and therefore removed from your credit file.

Contact a Credit Repair Advisor if you need more information on credit repair 1300 667 218.

Good luck with your own path to financial freedom.

Image: digitalart/ www.FreeDigitalPhotos.net

12/02/2013
Seven habits of highly frugal people

In this ‘Make Credit Work For You’ post, we look at what an expert recommends as good money habits. No matter what income you are on – Finance Blogger David Ning says it is what you do with that income that sets you apart and means you have a better life. His views were featured in news.com.au this week and we look at what those seven habits are, and how you can improve your dealings with money and protect your finances and your credit file for a better life.

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

You don’t have to be poor to be broke, and statistics prove it. In September last year the Australian Bureau of Statistics revealed that nearly 8 per cent of the nation’s richest households were living on credit.

Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10. See more in the article ‘Aussie strugglers living beyond means.’

Living this way is living dangerously. Often you are said to be robbing Peter to pay Paul. If something goes wrong, you can run a real risk of getting into arrears and copping a default on your credit file – or worse.

The secret of not living paycheck-to-paycheck (or card repayment to card repayment) is by following some simple life habits.

Frugality doesn’t mean giving up luxury and the things you love but changing your attitude towards money.

David Ning says that the well known 7 habits of highly effective people can be adapted to become the seven habits of highly frugal people and help you live a happier and more frugal lifestyle.

Here are those 7 habits of highly frugal people as featured in news.com.au:

Habit one: Be proactive Mr Ning compares the habits of highly frugal people to the seven habits of highly effective people and the first step is to take responsibility.

Quit blaming your childhood, your school, your boss or the Government and accept that you are in control of the direction of your life.

The more you ignore the situation, the worse it will get.

“Take a long hard look at your finances — your budget, debts, income, and expenses, and try to understand where your money is going and where you can budget better,” writes Mr Ning.

Then you must tell people of your hope of being more financially stable which can help you focus on your goal and avoid the peer pressure that makes budgeting and frugality hard.

Habit two: Begin with the end in mind Those who are successful in reaching their goals are those who can envisage them from the beginning.

“If you don’t visualise what you want, then you’re at risk of other people and external circumstances influencing your life – because you’re not influencing it yourself,” he says.

You must decide if your goal is to be debt free, build a savings account of a certain value, or live on one income in a two-income household.

Then decide how you’re going to get there. This involves identifying obstacles standing in your way such as credit card debts. Or behavioral obstacles such as spending $10 every day on junk food.

Habit three: put first things first Knowing why you’re doing something can help make you do it and that means knowing what is most valuable and worthy to you. It’s a lot more difficult to say “no” to something if you don’t know why you’re saying no and not focused on what’s important to you.

It’s easy to spend more than your budgeted amount each month when you put everything before your finances such as “worrying about missing out on a dinner with friends, feel as though you have to cater a birthday party for your son and 50 of his closest friends, or don’t want to wear the same suit to a work conference two years in a row.”

It’s important to be able to “just say no”.

Habit four: Think win-win Don’t compare yourself to others and constantly compete with others. Instead, it’s better to have a win-win mindset which will allow you to see mutual benefits from all your dealings with people and realise that there’s enough for everyone to benefit from situations.

Don’t think “it’s not fair” that others have a better car or a bigger house because you don’t know the whole story – and it could just be a façade for covering their huge debts.

It’s important to focus on your own finances and know you’ll get to where you want to be some day.

“True wealth is not measured in possessions, but in assets. When the value of your assets is greater than the amount you owe on mortgages, car loans, and credit card debts, then you have a strong net worth and are truly wealthy.”

Habit five: Communication Listening with the intention to understand can help you reach your goal of frugality. “Don’t just wait for your turn to talk; pay attention to what people are trying to tell you,” writes Mr Ning.

To be effective in your goal of frugality, you need to be able to listen to and understand the goals and behaviours of the other people in your life. If you’re saving but your partner is spending like crazy then your behaviours offset each other and you won’t reach your goal.

Instead understand the needs of the people in your life and work out a way to be more frugal without them having to give up the things that are most important to them.

Habit Six: Synergise Synergising is the habit of working as a team to get better results than if you were working on your own.

When you have genuine interactions with people, you’re able to gain new insights and see new approaches to your problems — ones you might not have thought of before.

Talk to people to discover new ways to do things and processes that can really help you save money. Surrounding yourself with like-minded people can help.

“Find people who are where you want to be by joining online frugal-living forums, striking up a friendship with a fellow coupon-cutter, or starting a sewing club,” writes Mr Ning. “When you’re around people with the same goals as you, you’ll be able to share ideas and learn from each other.”

Habit seven: Sharpen the saw In order to maintain all these habits and achieve any goal in life it’s important to look after yourself physically, emotionally, mentally and spiritually.

This can be done frugally too by: eating better by starting a vegetable patch; exercise frugally by going for a walk or jog; interacting socially to make you feel better emotionally; exercise your mind by reading or volunteering; and spend time close to nature and expand your spiritual self through meditation, music, art, or prayer.

Image: Feelart/ www.FreeDigitalPhotos.net

07/02/2013
First Home Buyer Figures Take a Dip: ABS Housing Finance October 2012

After the promising figures from August and September’s Housing Finance Statistics which seemed to indicate First Home Buyers were making their way back to the market – figures from October record a drop. Is the recent interest rate cut going to be enough to tempt First Home Buyers back to the housing market – or are we out for the near future? What does this mean for those people with bad credit?

By Graham Doessel, Founder and CEO Of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au. https://www.facebook.com/FixMyBadCredit.com.au.

OCTOBER KEY POINTS

VALUE OF DWELLING COMMITMENTS

October 2012 compared with September 2012:

 The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 1.1%. Investment housing commitments rose 2.2% and owner occupied housing commitments rose 0.5%.

 In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 1.8%.
NUMBER OF DWELLING COMMITMENTS

October 2012 compared with September 2012:

 In trend terms, the number of commitments for owner occupied housing finance rose 0.6%.

 In trend terms, the number of commitments for the purchase of new dwellings rose 4.0%, the number of commitments for the purchase of established dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.9%.

 In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 18.7% in October 2012 from 19.4% in September 2012.

With experts predicting a rise of at least 3%, October’s rise of only 0.1% has meant many are predicting further cuts will be needed. The RBA cut the cash rate to three per cent at its December board meeting last week.

Australian Broker reports more on this:

“The Reserve Bank is relying on the housing sector to pick up in 2013, following an expected peak in mining investment. But economists are now saying they may need to cut the cash rate further in order to stimulate growth the housing sector,” their recent story said.

Macquarie chief economist Richard Gibbs said weakness in the number of home loans indicated a continued lack of confidence among would-be homeowners.

“This data is a lot more spotty than we had expected,” he was reported as saying in Business Spectator yesterday.

“While the value of lending commitments is up, the number of loans remains weak, reflecting a wider lack of consumer confidence in Australia.”

However, investors seem more confident with the market – the value of investment home loans rose 14 per cent over September and October.

CommSec chief economist Craig James said in Business Spectator there were a number of factors boosting investor confidence – reportedly the strongest back-to-back gains in more than five years.

“Investors conclude that migration is rising, rental markets are tight and home prices are rising – a compelling mix of factors pointing to higher property returns,” he said.

Buyer confidence and bad credit

When lending criteria is tight, what happens to people who have bad credit? When they are refused a mainstream loan because of bad credit, but market confidence is high – when it is moving up – they may want to get into a loan at a higher interest rate in order to take advantage of an increasing market. This comes at a price though – a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan. But if the market is going up rapidly – they may see it as a viable option.

When confidence is low, when the market is static, they may not be so keen – they may simply choose not to buy.

Some reports suggest as many as 3 million Australians are living with bad credit. How many of these people would like to buy a home in the next 5 years? Many of the people that currently have negative listings on their credit file may be living with bad credit history unnecessarily. Rather than miss the opportunity to buy because there is no urgency to buy, because they would rather save that $15,000 – there is another option – to actually assess whether they would be suitable to repair their credit rating.

To find out how more people can remove their bad credit history – opening doors to lenders that were previously unavailable – contact MyCRA Credit Rating Repair.

Click on the link to this short video to find out how a professional credit repairer can help you or if you are a broker, your clients:

Image: Idea go/ www.FreeDigitalPhotos.net

11/12/2012
More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

Media Release

More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

A consumer advocate for accuracy in credit reporting says the finance sector should focus on educating prospective home buyers about their credit file in the wake of signs more Australians are capitalising on interest rate cuts and applying for home loans.

CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many buyers will be caught out with a bad credit rating at the time of finance application, because they simply don’t know the importance of checking their credit file for inconsistencies beforehand.

“We find many people do not know what a credit file is – many more don’t know the process for being listed with bad credit, and more again assume that if there was something amiss with their credit file, that they would somehow be informed.”

”They don’t realise that the onus is on them to check their credit history on a regular basis – at least once per year – just to make sure that errors have not been made on the credit file,” Mr Doessel says.

The warning comes as new housing figures from the Australian Bureau of Statistics released on Monday point to a continued rise in the number of home loans.

September’s key figures reveal owner occupied housing commitments rose 0.9% to 46,395, up from an upwardly revised 45,983 in August.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

With a possible new influx of buyers to the finance market, Mr Doessel says it is vital that people know about credit reporting and how it can impact their ability to get a home loan.

He says many people may believe their credit history is clean, but creditors can and do make mistakes with credit reports, and often it is not until people apply for finance and are refused, that they find out they have bad credit.

“This surprise bad credit is happening to many people, from all walks of life – businessmen, families – we have even had a millionaire require our services to remove an error on his credit file so he could purchase a home for his wife,” he says.

Bad credit is shown on the credit file for between 5 and 7 years, and most often impacts the credit file holder’s ability to get mainstream credit.

“Most are forced into three scenarios – 1) ride out the 5 or so years until the listing falls off their credit rating; 2) get a home loan at a much higher interest rate with a non-conforming lender; or 3) dispute the credit listing which they believe shouldn’t be there,” Mr Doessel says.

But he says at the time of finance application the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the credit rating discrepancy is addressed.

“Disputing and removing an unfair credit listing can be a difficult and time consuming process, made more stressful if the credit file holder has pressures from finance deadlines,” he says.

People can check their credit file has the “all clear” before they apply for finance, by contacting Australia’s credit reporting agencies Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania) and requesting a copy of their credit report – which is free once a year. This report is mailed within 10 working days, or for a fee to the credit reporting agency, it can be sent urgently.

“If there are any inconsistencies or out and out errors on the credit file, generally thousands and thousands of dollars in interest is saved by having them removed, as the credit file holder can then take advantage of those interest rate cuts by applying for a home loan with a mainstream lender at competitive rates,” Mr Doessel says.

For more information on removing or disputing credit rating errors, contact MyCRA Credit Rating Repairs on 1300 667 218.

/ENDS.

Please contact:

Graham Doessel – Founder and CEO Ph 3124 7133

Lisa Brewster – Media Relations MyCRA media@mycra.com.au

http://www.mycra.com.au/ www.mycra.com.au/blog

246 Stafford Rd, STAFFORD Qld

MyCRA Credit Rating Repairs is Australia’s front-runner in credit rating repairs. We permanently remove defaults from credit files.

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15/11/2012
More positivity for housing: ABS Housing Finance figures continue to climb for September

Good news again for the property market, with data from the Australian Bureau of Statistics recording another increase in Housing Finance figures. Some economists say Australians are starting to make the most of interest rate cuts. We look at the ABS Statistics, and look at the importance of credit file education to a possible new buyer’s market.

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

Figures released today by the Australian Bureau of Statistics on September 2012 Housing Finance figures show owner occupied housing commitments rose 0.9% from August to 46,395, up from an upwardly revised 45,983 in August.

An increase of 1.0% was predicted by economists.

CommSec chief economist Craig James (featured in The Australian today) says the ABS data suggests home loan value could be on the rise.

“The data shows that loan value is rising at a faster rate than the actual number of loans,” he said.

“That suggests that there’s increased confidence by borrowers, or that home prices are edging a little higher.”

Here is an excerpt from the ABS release:

SEPTEMBER KEY POINTS

VALUE OF DWELLING COMMITMENTS

September 2012 compared with August 2012:

 The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.7%. Investment housing commitments rose 1.1% and owner occupied housing commitments rose 0.5%.
 In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 3.8%, with investment housing commitments rising 8.6%.

NUMBER OF DWELLING COMMITMENTS

September 2012 compared with August 2012:

 In trend terms, the number of commitments for owner occupied housing finance rose 0.5%.
 In trend terms, the number of commitments for the purchase of new dwellings rose 3.0%, the number of commitments for the purchase of established dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.3%.
 In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 19.3% in September 2012 from 18.6% in August 2012.

Over the past six months, the Reserve Bank of Australia has shaved a full percentage point from the key interest rate. As a result, standard variable mortgage rates have on average come down by 55 basis points to 6.85 per cent.

This seems to finally be making an impact on Housing Finance, with both August and September data showing a recorded increase in commitment numbers.

The ABS reports that in original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 19.3% in September 2012 from 18.6% in August 2012. Between September 2012 and August 2012, the average loan size for first home buyers rose $400 to $289,300.

As more buyers enter the market, we feel it is worthwhile to ramp up our education efforts around credit history. Many people do not know what a credit file is – many more don’t know the process for being listed with bad credit, and more again assume that if there was something amiss with their credit file, that they would somehow be informed. They don’t realise that the onus is on them to check their credit history on a regular basis (at least once per year) just to make sure that errors have not been made on the credit file. Errors can happen to anyone – from all walks of life.

People may believe their credit history is clean, but creditors can and do make mistakes with credit reports, and often it is not until people apply for finance that they have any idea they have bad credit. At this time the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the discrepancy is addressed.

The process of clearing an unfair credit listing can sometimes be very time consuming – especially if the creditor has not cooperated with requests to supply documentation in a timely fashion, or the matter has to be referred to a third party for investigation.

So the message is, if people are thinking about buying a home in the near future – they should grab a copy of their credit file, and make sure it has the “all clear” before they apply for finance, and before they get their hearts set on any particular home. This is free for all credit active Australians once every year and we encourage any home buyer to request a copy of their credit report. It takes 10 working days or for a fee to the credit reporting agency, it can be sent urgently. But what it does is give peace of mind – not only to the Purchaser, but to the Broker or Bank Manager, and in some cases a clear credit file can help get the deal over the line with the Agent and Seller.

If there are any inconsistencies or out and out errors on the credit file, the advantage to getting those removed is generally thousands and thousands of dollars in interest saved. A clear credit file allows purchasers to capitalise on those interest rate cuts with the mainstream lender of their choice rather than being forced into the non-conforming sector at much higher interest rates.

To find out more about the benefits of using a credit rating repairer to dispute credit listings, see our recent post How Do I Fix My Bad Credit? Or contact a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 or visit the main site for more information www.mycra.com.au.

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12/11/2012
Signs the housing market on the ‘up and up’: August Housing Finance Statistics

Good news for the housing market this week. It seems the recent interest rate cuts have prompted buyers to return to the market, with home loan approvals recording the highest rate this year, with an increase of 1.8 per cent in August.

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

Housing Finance Data through from the Australian Bureau of Statistics yesterday shows the number of home loans approved rose to 45,821. That was from an upwardly revised 45,021 in July. Economists had expected housing finance commitments to rise 1.5 per cent in August.

AUGUST KEY POINTS

VALUE OF DWELLING COMMITMENTS

August 2012 compared with July 2012:

 The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.2%. Owner occupied housing commitments rose 0.6%, while investment housing commitments fell 0.5%.

 In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 0.6%.

NUMBER OF DWELLING COMMITMENTS

August 2012 compared with July 2012:

 In trend terms, the number of commitments for owner occupied housing finance rose 0.4%.

 In trend terms, the number of commitments for the purchase of new dwellings rose 2.5%, the number of commitments for the construction of dwellings rose 0.9% and the number of commitments for the purchase of established dwellings rose 0.2%.

 In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 18.6% in August 2012 from 19.2% in July 2012.

Here is an excerpt from The Australian’s story titled ‘Home loan approvals up 1.8pc in August amid rate cuts’:

St George economist Janu Chan said the result supported other recent housing sector data, suggesting that people were beginning to return to the market, particularly owner-occupiers.

“There is a definite upward trend in owner-occupier housing,” she said. “That’s certainly encouraging for the housing market, and is also in line with the stabilisation in house prices that we’ve seen in many states.

“There are however, some signs of weakness – investor housing is quite soft, suggesting that investors are still quite cautious about getting back into the market, despite the stabilising house prices.”

The value of investment-housing loans in August fell 0.8 per cent from July, the ABS said today.

Over the past five months, the Reserve Bank of Australia has shaved a full percentage point from the key interest rate. As a result, standard variable mortgage rates have on average come down by 55 basis points to 6.85 per cent.

But JPMorgan economist Tom Kennedy said that the market was yet to see a surge in new housing financing commitments fuelled by the rate cuts in May and June.

He said the two factors that are not encouraging people to get new home loans was uncertainty over the European economy and its debt crisis and that the commercial banks have not been passing on the RBA rate cuts in full.

Mr Kennedy said today’s figures are unlikely to affect the RBA’s interest rate outlook and he forecasts one more interest rate cut by the RBA before the end of the year.

“I think at this stage the RBA is focusing their attention on the labour market,” he said.

In the meantime, it will still be essential for borrowers to present with a clean credit file to ensure finance approval, particularly if lending criteria continues to be conservative. For those who are living with credit file errors and inconsistencies, there is a solution – to dispute that incorrect listing that haunts their ability to obtain credit.

Unfortunately consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file so many errors go undetected until such time as they apply for a home loan.

At that stage, regardless of the accuracy of the information on their credit file, they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

But if a credit listing is unfair, contains errors or shouldn’t be there, then the consumer has the right to request a correction or removal.

When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation – as credit listings are not removed unless they have been unlawfully placed on the credit file.

Unfortunately many people find this process difficult at best – the mountains of legislation applicable in many cases can be daunting and many don’t have the skills or time to get to know it, and likewise, negotiating with creditors is not always easy for the individual to undertake.

The other option is to request help contesting a disputable listing with a credit repairer. Our job as credit repairers is to check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default.

To find out more about how credit repair works, contact a Credit Repair Adviosr at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

Image: Idea go/ www.FreeDigitalPhotos.net

16/10/2012
Graham Doessel – consumer credit advocate – reveals the gap has widened between the haves and the have nots

For those people on a low income, statistics coming from the Australian Bureau of Statistics report that home ownership has transported low income households in Australia from the poverty line over the last six years, and buffered the hard times where low income is temporary. With house prices currently down in many areas, now could be a good time to get your credit history checked and try to buy your own home, potentially becoming one of the ‘privileged’ in Australia who own their own home – even despite low income.*

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

According to the Australian Bureau of Statistics (ABS) in its article ‘Life on Struggle Street – Australians on low economic resource households’ home ownership can act as a buffer for people who experience periods of low income.

“While regular income is an important economic resource for many people, wealth in the form of bank accounts, shares, superannuation or property can be drawn upon to smooth and support consumption over time, including during periods of low income,” the ABS says in this article.

The information on low economic resource households was utilised from a larger article ‘Australian Social Trends March 2012’, released yesterday. This article draws on a wide range of data, to present a picture of current Australian social conditions.

Australian Social Trends March 2012 uses data from the ABS 2003–04 and 2009–10 Surveys of Income and Housing, and the ABS 2009–10 Household Expenditure Survey.

What seems apparent from the article is that the event of home ownership could potentially change a person’s life forever – particularly those people currently on a lower income, or those who expect to be on a lower income at some stage in the future (due to retirement, child-rearing etc).

We know the benefits of home ownership – the home owner has the opportunity to accumulate wealth outside their income through projected capital gain, and they also have the potential to borrow against the home in some instances.

The ABS puts this into perspective when deciding on what is considered a ‘low economic household’.

“The advantage of taking into account wealth as well as income is that it excludes those with high wealth who enjoy reasonable levels of consumption despite a low level of income. This approach is therefore more likely to capture people most at risk of experiencing economic hardship, than analyses of income alone,” the ABS article Life on Struggle Street – Australians on low economic resource households explains.

Home ownership lessens the risk of experiencing economic hardship.

“This disparity between people in low economic resource households and the rest of the population is even more pronounced when it comes to wealth. The average equivalised net worth of people in households with low economic resources in 2009–10 ($53,500) was one tenth of the average across other households ($509,800). After adjusting for inflation, the net worth of low economic resource households had not increased significantly since 2003–04, while the average net worth across all other households had increased by 29%.

“These data indicate that the disparity in both income and wealth between those in low economic resource households and the rest of the population had grown over the six years to 2009–10,” the article reports.

It seems in the past six years it has been more beneficial than ever for people on lower incomes to have owned their own home. But unfortunately with rising house prices and an increased cost of living, saving for the deposit and actually qualifying for the loan can be difficult. Then, the global financial crisis hit, and banks have been making it even harder ever since for people to get a home loan.

For those lower income owners who are lucky enough to qualify for a home loan, it is more vital than ever that their credit check comes back clear to be assured a loan.

A clear credit file ensures people have the best chance of obtaining a home at the most affordable interest rate.

So if people otherwise qualify for a loan, but have bad credit history which is holding them back, all may not be lost. They should talk to the team at MyCRA Credit Rating Repairs about potentially restoring their credit file. Call us on 1300 667 218 or visit our website www.mycra.com.au.

The picture painted by the ABS of many of those low economic resource households who can’t afford a home of their own or other investments is a rather grim one.

“Around a quarter (24%) of low economic resource households reported spending more money than they received most weeks, twice the rate of other households (12%). This gives an indication of the extent to which people, particularly in low economic resource households, may be forced to draw upon their limited assets or rely on credit from week to week simply to make ends meet,” the ABS says.

Low income households also would find it difficult to raise emergency money:

“In 2009-10, 43% of low economic resource households reported that they would not be able to raise $2,000 in a week for something important. In contrast, only 7% of other households reported being in this position.”

“A range of other indicators of financial stress were more prevalent among low economic resource households: 10% reported that they had gone without meals in the past 12 months due to cash flow problems, while 8% had resorted to pawning or selling possessions. By contrast, only 1% of other households had been forced to either of these lengths.”

Close to a third (31%) of low economic resource households reported that they had been unable to pay a utility bill on time in the past 12 months, and 20% had sought financial help from friends or family due to cash flow problems. This compares with 8% and 5%, respectively, among other households. One in ten (10%) low economic resource households were forced to seek assistance from welfare or community organisations, compared with 1% of other households,” the ABS says.

At this end of the scale, lack of access to cash can be a difficult cycle to get in to. Those people suffering with defaults or other negative listings on their credit file could be faced with high interest rates in an emergency, putting stress on an already struggling household. People in this predicament should talk to someone about the options of removing negative listings which shouldn’t be there, from their credit file as well.

Watch this short how-to video to find out how credit rating repair could help you.

* The opinions in this article should not be construed as financial advice. For expert advice on whether home ownership is right for you, contact a Finance Broker or Financial Adviser.

Image: Dan / FreeDigitalPhotos.net

29/03/2012
Australian Bureau of Statistics Housing Finance Nov 2011

The ABS has today released its new figures on Housing finance for November. The number of committments for owner occupied dwellings has risen 1.4% – higher than was expected by economists.

Positive results for the housing market, but home buyers will still have to work hard to ensure they meet banking criteria, including presenting with a clean credit file.

By GRAHAM DOESSEL.

The Herald Sun reported Macquarie senior economist Brian Redican as saying the November data was encouraging.

“Definitely, we are seeing a step in the right direction,” he said.

Mr Redican said the housing sector might receive a boost from the two successive interest rate cuts by the Reserve Bank of Australia (RBA) late last year, and the prospect of more cuts to come in 2012.

“I think it does have to have a positive impact.

“These numbers don’t reflect those cuts yet and it will have to take a few more months for that to flow through.

“What it does do is just make housing more affordable for those people that were thinking of going into the housing market.”

ABS HOUSING FINANCE NOVEMBER 2011

NOVEMBER KEY POINTS
VALUE OF DWELLING COMMITMENTS

November 2011 compared with October 2011:

The trend estimate for the total value of dwelling finance commitments excluding alterations and additions was flat (0.0%). Investment housing commitments fell 0.5%, while owner occupied housing commitments rose 0.2%.

In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 2.1%.
NUMBER OF DWELLING COMMITMENTS

November 2011 compared with October 2011:

In trend terms, the number of commitments for owner occupied housing finance rose 0.6%.

In trend terms, the number of commitments for the purchase of established dwellings rose 0.8% and the number of commitments for the purchase of new dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.9%.

In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 1.4%.

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 20.0% in November 2011 from 19.1% in October 2011.

With talks of a weakening economy, we don’t imagine banks will be easing up on their lending criteria. It will still be essential for borrowers to have a squeaky clean credit file, which could involve people checking their credit report for errors if they are unsure why they may be refused finance.

If potential borrowers need help with credit repair, they can contact us at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

Image: Idea go/FreeDigitalPhotos.net

16/01/2012
First home buyers missing key step to finance approval

Media Release

23 November 2011

First home buyers are dipping their feet into the market again – a drop in interest rates and reduced property prices renewing buyer confidence for the first time in two years, but many are missing one vital check to ensure they are finance-ready, the credit check.

The Australian Bureau of Statistic’s housing finance figures for September show the number of first home buyers, as a percentage of total owner occupied housing commitments increased to 16.4 per cent compared to 15.4 per cent in August.

The Real Estate Institute of Australia says although the first home buyer proportion is well below the long-run average of 20.1 per cent, it indicates a modest return of first home buyers to the market.

“The latest figures show that buyers are gradually returning to the market and we should expect modest increases to continue after the decision on interest rates in November which has made housing more affordable for first home buyers,” concluded REIA Acting President, Pamela Bennett.

First home buyers wishing to take advantage of more affordable conditions need to know there is more to applying for finance than wages and savings records.

Director of MyCRA Credit Repairs, Graham Doessel says a borrower’s credit file is one of the key factors to home loan approval, and anyone applying for a home loan should obtain a credit report prior to making a finance application, regardless of whether they think they have a good credit rating or not.

“There are a great number of credit files which contain errors or which shouldn’t be there, and first home buyers need to know any negative listing will stop them from getting a home loan in this market, or force them into a high-interest loan, potentially costing them a staggering $22,000 more in interest over the first 3 years,” he says.*

The term of a negative listing is between 5 and 7 years, depending on the type and can include black marks from telecommunications and electricity providers as well as banks and finance companies.

The most common type of listing is a default, which is recorded if an account is in arrears past 60 days. According to Mr Doessel, defaults from telecommunications providers which are listed in error make up a big part of his clientele.

“As many as 50 per cent of our clients seek credit repair due to bill disputes and internal errors from Telcos that have seen them black listed from credit and unable to get a home loan,” he says.

He says it doesn’t need to be a big default to be a big detriment to a person’s loan application.

“Some defaults for unpaid accounts of $300 can stop borrowers from getting a home loan. Lenders are even rejecting loans for too many credit enquiries, such as two enquiries within thirty days or six within the year,” he says.

House hunters can obtain a copy of their credit file for free every year from one or more of the credit reporting agencies in Australia, and this file will provide details on any negative listings such as defaults, writs and Judgments which may have been placed against their name by creditors.

When disputing a negative listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation.

“Unfortunately many people find this process difficult – negotiating with creditors is not always easy for the individual to undertake. Our job as credit repairers is to check the process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default,” he says.

/ENDS.

Please contact:

Lisa Brewster – media@mycra.com.au

http://www.mycra.com.au/ Stafford Road, STAFFORD QLD. Ph: 07 3124 7133 246

MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

Links:

http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main20Features2Sep%202011 opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202011&num=&view=

http://www.reia.com.au/userfiles/MEDIARELEASE_1320968493.pdf

* $22,867.15. Based on average loan of $400,000 over 30 years on non-conforming
loan interest rate of 95.% vs standard variable rate of 7 %.(http://www.mycra.com.au/calculators/do-i-need-credit-repair.php)

Image: photostock/ FreeDigitalPhotos.net

08/12/2011
Being credit file savvy can save you money

Media Release
19 September 2011

Concerned Australians focusing on saving and reducing debt in the wake of the GFC, are overlooking how maintaining a clear credit file can be a simple way of making significant household savings, according to a national credit repairer.

Director of MyCRA Credit Repairs, Graham Doessel says people eager to save are busy reducing debt and going without life’s luxuries, but in the process are overlooking a key way they can save themselves thousands.

“A clear credit file allows consumers to shop for the best credit at the lowest interest rate. For instance, on a $400,000 home loan, those with a bad credit rating are potentially slugged around $550 extra per month in interest when comparing a non-conforming loan with a loan at a current standard variable rate,” Mr Doessel says.

He says if people have a bad credit rating, it sticks for 5 to 7 years, and they are most times shut out of credit with the major banks for this period.

“Unfortunately those people with a bad credit rating will generally be refused credit by mainstream lenders and funnelled into higher interest rate loans and cards which only seem to perpetuate the debt cycle for the very people who would benefit from saving money,” Mr Doessel says.

Current information from the Australian Bureau of Statistics on household savings show for the first time since 2003, household savings have dramatically increased. The ABS revealed in March 2011 the saving ratio rose to 10.1% in seasonally adjusted terms in the September quarter 2010.

Mr Doessel says many of his credit repair clients are in a better financial position than they have been in years for loan qualification, but are held back from taking advantage of competitive interest rates and stable house prices by black marks on their credit rating.

“Many clients have everything in place for obtaining loans, until they apply for credit with a lender and are knocked back due to credit rating defaults they were previously unaware of – and often those defaults should not be there,” he says.

He says the best way people can prevent this scenario is to get familiar with their credit file and the ways their good name can be compromised. He provides 6 tips for being credit file savvy:

1. Make repayments on time. Any bills which are more than 60 days in arrears can be listed by the creditor as defaults on a person’s credit file. This includes home loans all the way through to phone and power bills.

2. Dispute bills correctly. Many people find themselves with a bad credit rating following bill disputs with creditors such as phone and power companies. Many people are unaware that regardless of whether the bill has been disputed by the customer, if it is more than 60 days late the creditor will generally still list the non-payment as a default on the customer’s credit rating – whether the customer believes the amount is accurate or not. To avoid a bad credit rating when disputing bills, people should pay the bill by the due date and attempt to recover the money from the credit provider afterwards.

3. Ensure the accuracy of your credit file. All credit active individuals are entitled to a free yearly credit file check from all the credit reporting agencies that may hold a file on them. People should take advantage of this, and ensure there are no errors on their credit file. Mistakes can and do occur on credit files. If there are inconsistencies, people do have the right to have them rectified.

4. Educate yourself on identity theft. Identity theft is the fastest growing crime in Australia, and it can potentially ruin a person’s good credit rating. Typically, the fraudster extracts personal details from the victim and goes about obtaining credit under their name. Often the victim is not aware of the fraud until they attempt to obtain credit and are refused. Fraudsters have taken out credit cards, racked up thousands of dollars of debt, and in some cases have taken out mortgages in their victims’ names.

The best way to prevent identity theft is to be aware of how it can occur. The Government’s SCAMwatch website www.scamwatch.gov.au is a great place to start getting educated on what to watch out for. For help with preventing online identity theft, the Government’s Stay Smart Online www.staysmartonline.gov.au website also offers ways to combat identity theft through internet use.

5. Beware excess credit enquiries. Every time a person other than the credit file holder makes an enquiry on the credit file, this entry is noted. Unfortunately the credit file doesn’t show the nature of the enquiry, or whether the credit was approved or declined. Generally excess credit enquiries on the credit file will also hinder people’s chances of obtaining the best loan.

People can avoid this by not shopping around for credit, or by ensuring that all banks/brokers they deal with do not run a credit check on them until absolutely necessary. Potential borrowers can obtain a copy of their own credit file without incurring a credit enquiry, and this may be a better option to maintain a clear credit rating.

6. Keep credit limits to the minimum needed. Reducing credit limits not only prevents overspending – it is also beneficial for a person’s credit rating. Credit limits are recorded on all credit that has been taken out by the credit file holder. This amount shows on a person’s credit file, not the amount they have actually used. People should reduce lofty credit limits closer to the actual debt amount.

Mr Doessel says all credit active individuals will benefit from educating themselves on credit reporting in Australia, and for those that discover inaccuracies on their credit file they will save themselves money by having them removed.

“People can greatly benefit from clearing their credit file of errors. Sometimes people have neither the time, nor knowledge of legislation that is required to deal with creditors, and in this instance a credit repairer can do the work for them,” he says.

/ENDS

Please contact:

Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au
Graham Doessel – Director 07 3124 7133

http://www.mycra.com.au/ www.mycra.com.au/blog

Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

Link: Australian Bureau of Statistics Household Saving

Image: Arvind Balamaran/ FreeDigitalPhotos.net

29/09/2011
July’s Lending Finance statistics

The Australian Bureau of Statistics recently released statistics on lending finance for the month of July . These statistics show a slow but steady increase in lending committments, when compared with the relatively flat June statistics:

JULY KEY POINTS

JULY 2011 COMPARED WITH JUNE 2011:

HOUSING FINANCE FOR OWNER OCCUPATION
 The total value of owner occupied housing commitments excluding alterations and additions rose 1.5% in trend terms and the seasonally adjusted series rose 1.4%.

PERSONAL FINANCE
 The trend series for the value of total personal finance commitments rose 1.1%. Fixed lending commitments rose 1.1% and revolving credit commitments rose 1.1%.
 The seasonally adjusted series for the value of total personal finance commitments rose 0.5%. Revolving credit commitments rose 3.9%, while fixed lending commitments fell 2.3%.

COMMERCIAL FINANCE
 The trend series for the value of total commercial finance commitments rose 0.9%. Revolving credit commitments rose 2.2% and fixed lending commitments rose 0.3%.
 The seasonally adjusted series for the value of total commercial finance commitments rose 6.1% in July 2011, after a 6.1% fall in June 2011. Revolving credit commitments rose 13.4%, after a 7.8% fall in the previous month. Fixed lending commitments rose 2.7%.

LEASE FINANCE
 The trend series for the value of total lease finance commitments fell 1.3%, while the seasonally adjusted series rose 3.4%.

Australian Broker News says the rise in commercial lending was foreseen by Jonathan Street, executive director of commercial lender ‘Think Tank.’ He predicted “pent up” demand for commercial credit would “release” at some point this year.

While finance committments are on the rise, experts say credit debt is not. There has been a big trend towards direct debit cards – showing Australians are preferring to spend their own money rather than pay credit for things and some say points to people reigning in debt and focusing on saving. According to finance commentators Switzer, there has been a sharp fall in credit card debt. Statistics show purchases made on debit cards were up by 18.9 per cent on a year ago, while purchases made on credit cards rose by just 1.9 per cent.

What is evident, is the slow increase in lending figures. This demonstrates that banks are still wary about who they lend money to. It also shows that consumers are being wary about what they borrow money for. But housing finance still seems to be a priority for many Australians.

With banks still cautious, there still appears to be a great need for a clear credit rating in the current market. Prospective home owners should ensure their credit file puts them in the best position for obtaining a mortgage. They should do a credit check, and ensure their credit report comes back clear.

If people do find their credit report reveals some black marks, they should consider whether they are candidates for credit repair.

People should be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error. So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.

It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be. Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID. For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 years (the term of a
default).

For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.

Image: Idea go/ FreeDigitalPhotos.net

15/09/2011

New statistics paint positive picture of housing market

The Federal Government’s announcement of the best economic growth in four years and the prediction that interest rates remain steady for the rest of the year, may be the catalyst for a return to slow but positive growth in the housing market. The Government announced today a 1.2 per cent increase in GDP in the 3 months to June 30.

The trend is definitely upwards following the latest housing statistics from the Australian Bureau of Statistics. Whilst a minimal increase, and less than expected by economists, the result should still be heartening for the many brokers, investors and home owners alike who have been waiting with bated breath for something positive from the property market.

Statistics released from the ABS on July’s housing figures show a one per cent rise in home loans for the month which is an improvement on the flat market of the last few months.

Total housing finance by value rose 1.6 per cent in July, seasonally adjusted, to $20.576 billion. The value of home loans for owner-occupied homes rose 1.4 per cent to $14.4 billion after seasonal adjustments. The value of loans for investment homes rose 1.9 per cent to $6.2 billion.

The number of commitments to buy new homes fell 0.9 per cent after seasonal adjustments, while commitments to buy established homes rose 1.3 per cent.

The number of loan commitments for building homes fell 0.8 per cent.

JULY KEY FIGURES

	Trend estimates		Seasonally adjusted estimates
	Jul 2011	Jun 2011 to Jul 2011	Jul 2011	Jun 2011 to Jul 2011

Value of dwelling commitments(a)(b)	$m	% change	$m	% change
Total dwellings	20 449	1.2	20 576	1.6
Owner occupied housing	14 280	1.5	14 370	1.4
Investment housing – fixed loans(c)	6 169	0.5	6 206	1.9
Number of dwelling commitments(a)(b)	no.	% change	no.	% change
Owner occupied housing	49 548	1.7	49 813	1.0
Construction of dwellings	4 796	1.3	4 757	-0.8
Purchase of new dwellings	2 098	2.3	2 084	-0.9
Purchase of established dwellings	42 654	1.7	42 972	1.3

(a) Includes refinancing (see Glossary).
(b) Excludes alterations and additions.
(c) Excludes revolving credit.

Value of dwelling commitments,
Total dwellings
Graph: Value of dwelling commitments, Total dwellings

No. of dwelling commitments,
Owner occupied housing
Graph: No. of dwelling commitments, Owner occupied housing

Coupled with the small rise in home loans, were statistics released yesterday from the ABS showing household spending has also risen 1 per cent in the

With this small boost in confidence, will be the need for prospective home owners to ensure they have not been tarnished by the gloomy periods of recent months in respect to their credit file. It would suggest this could be a good time for people to do a credit check, and ensure their credit report comes back clear.

Whilst the outlook may be positive, it probably hasn’t transferred to banks yet – so they may still require borrowers to have a clear credit file to obtain a mortgage in the current market.

People should be aware that any repayments which were left late past 60 days may have been listed on their credit file as defaults. This includes any bills which were in dispute.

People should also be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error. So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.

It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be. Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID. For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 years (the term of a default).

For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.

08/09/2011

Tag: Australian Bureau of Statistics

Press Release

Credit ‘blemishes’ contribute to first home buyer slump

Press Release

Media Release