MyCRA Specialist Credit Repair Lawyers

Tag: bad credit

Unemployed? 8 ways to keep your credit rating safe.

What happens to your credit rating when you lose your job? There are some things you can do when you face unemployment to reduce the likelihood that your credit rating will suffer. Unemployment is often just a temporary setback. But if during the time you’re unemployed you lose your good credit rating, you could see a temporary setback become the thorn in your side that remains for between 2 and 5 years. We look at the 8 most important things to do when you lose your job to help save your clean credit file.

By Graham Doessel, Founder and Non-Legal Director of MyCRALawyers www.mycralawyers.com.au.

8 ways to keep your credit rating safe after you lose your job.

1. Act. Most people feel like digging a hole and burying themselves in it for a while when they lose their job, but taking action immediately will save your credit file. Even if you think the situation is only temporary, you don’t have a crystal ball. You need to take steps straight away to protect yourself and your family from debt and bad credit.

2. Check your insurance. If you have taken out income protection insurance, or mortgage protection, now’s the time to make that phone call to see where you stand. It can take a while for the claim to be processed.

3. Apply with Centrelink for assistance. Don’t be too proud to ask for help. Talk to the Department of Human Services to find out what government assistance you may be entitled to and when. As with insurance, some benefits have waiting periods, so contact the department as soon as you can to know where you stand.

4. Tally up what you owe (and what’s owed to you). Work out how much disposable income you have now, and tally up all of your bills that you consider will appear in the future. You can find a great budget planner on ASIC’s MoneySmart website which could help.

5. Assess the credit you owe and where you may have trouble with repayments in the future. Work out how long your current funds are going to last. What you want to do is avoid getting into arrears with your accounts at all costs. It only takes 60 days in arrears on any account to get into ‘default’ with creditors, and this notation on your credit file will mean you will probably be blacklisted from credit for 5 years – even if you find another job and get everything back on track a month or two later.

6. Make licenced credit a priority to pay on time. Licenced credit includes your credit card and loan accounts. It needs to be repaid by the due date as a priority, due to the possibility that repayment history on those accounts is being collected. If your Credit Provider is collecting repayment history, then accounts which are more than 5 days late will appear as a ‘late payment’ notation on your credit file. This notation stays on your credit file for 2 years and too many will probably impact your ability to obtain credit, or at least affect the interest rate you are offered.

7. Notify your Credit Providers. Don’t wait until you’re in arrears, or until you’re in debt up to your eyeballs, to let your Credit Providers know you have lost your job. New laws have been introduced around financial hardship – and in your situation you are who these laws were made for! Financial hardship variations are encouraged in many industries if consumers notify their credit provider they are undergoing temporary financial hardship. Financial hardship variations can involve reduced or frozen payments and can prevent a default appearing on your credit file. Undergoing step 5 is almost essential to any successful hardship negotiation. Knowing what you can afford to pay and when, prior to talking to your Credit Providers will go a long way and ensure the newly negotiated amount is affordable for you while you are unemployed. Creditors are legally required to consider a person’s request for variation on payment arrangements, but are not obliged to agree to any hardship variation proposal put forward. But there is a trend towards offering help before defaults – so it is smart to ask.

8. If it’s too late: all may not be lost. If you are currently experiencing bad credit due to a temporary financial hardship such as a job loss, it may be worth assessing your credit history and the circumstances around any defaults placed against your name. Any listings which are deemed unlawfully placed for whatever reason could be required to be removed by your Credit Provider. For more information on this, and disputing a default, contact us on 1300 667 218 or visit our main website www.mycralawyers.com.au for more information.

If you know your finances are under control, then you can concentrate on finding the right job for you.

For further and specific money help, consult a financial counsellor in your State.

The above information is for general purposes only and should not constitute financial advice nor replace seeking help from a professional financial adviser.

Image: pat138241/ www.FreeDigitalPhotos.net

02/04/2014
Testimonial – William K – QLD

Will chats to Graham Doessel (MyCRA Lawyers CEO) about his experience in dealing with MyCRA Lawyers to have his credit rating repaired.

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31/03/2014
How your credit rating can be damaged when you move.

Did you know, that every time you move house, you run the risk of damaging your credit rating? It happens if loose ends are not tied up on your credit accounts before you leave your old address. We look at some ways you can make sure you don’t risk your good credit rating, and ability to get a loan in the future when moving house.

By Graham Doessel Founder and Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

Moving is a time of stress and chaos. All of your important stuff is boxed up and in transit. You’re flat out cleaning the old place on time, let alone tending to those financial loose ends. But to maintain the integrity of your credit rating, it is really important that you have a plan for making a clean break at each residence.

Time and again we have the situation where clients apply for a home loan and are refused because they have ‘surprise bad credit’, which when we track it back for them is due to the fallout of accounts sent to their previous address. This may not always be your fault.

We have had plenty of clients who’ve needed help disputing their credit listing, because their Energy Provider could not work out that cancellation of their old account and installation at the new address meant that they had actually moved. Their final account was sent to their old address because they had not specifically provided a forwarding address.

Not notifying your Credit Provider of your new address when you move can lead to a Serious Credit Infringement or ‘clear-out’ listing being placed on your credit file. This listing is, as the name suggests, much more serious than a default.

What is a Serious Credit Infringement (SCI)?

A serious credit infringement is an overdue debt in which the Credit Provider has been unable to contact the individual for 6 months following the overdue debt, despite reasonable attempts by the Credit Provider to do so. A SCI is listed on your credit file for 7 years. If contact is made within that time, and the overdue debt is paid, the listing is then downgraded to a default, which carries only a 5 year term.

To avoid this, here are 5 tips for keeping your credit rating in check when moving house:

1. Let all your Credit Providers know you will be moving and give them a forwarding address.

You are obliged to update your Credit Providers with your forwarding address when you move. When you make that call to your Credit Provider, be sure to make a note of the day, time and person you spoke to about the request.

Often we have people say they have told their telco or their energy company they are moving, and provided a forwarding address, but mail has still gone amiss and the client has ended up paying for it. If you have specific details of your call – the Creditor may be able to bring up the recording and verify your request.

2. If ending an account with a Provider, request a final account.

If you need to cancel your account, such as an Energy or home phone account when you move, make sure you request a final account for services. There may be incidental charges, or pay out fees as well as days accrued in the new bill period. Pay that notice as soon as possible.

3. Don’t assume your account is finalised until you get it in writing.

Once you have paid your final account, request a statement be sent in writing verifying the account is at an end. If you don’t receive that notice, chase it up.

4. Cancel any direct debits.

Places such as gyms and childcare centres operate payments via a separate direct debit company. If you have any direct debits set up, you should notify the company of the cancellation and of your forwarding address.

Don’t assume correspondence with your gym is enough to cancel that account. You will have signed a separate contract with the direct debit company, and you are just as obligated to them if you have missed payments, for whatever reason.

5. Redirect mail.

Despite providing a forwarding address, and despite your attempts to finalise your accounts, there can be instances where a Credit Provider continues to send mail to your old address.

Creditors can and do make mistakes, and one common mistake is simple computer or human error with billing systems. To prevent their oversight from costing you your good name through bad credit, consider redirecting mail through Australia Post to your new address.

If you have just found out you have bad credit, there are many circumstances where you may be able to successfully dispute the credit listing. For help to dispute your default or Clear-Out listing, contact MyCRA Lawyers on 1300 667 218.

Image: Ambro/www.FreeDigitalPhotos.net

27/03/2014
How to get a copy of your credit report in Australia
Are you in strife with credit or think you might have bad credit? Or do you just want to check what’s being said about your credit habits? With Australia’s new credit reporting regime now in place, it’s really important to regularly check your credit file to make sure it is accurate and up to date. We explain the important things you need to know about getting your credit report and the different ways you can access your credit file information in Australia.

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

You can access your credit report for free.

Most people are unaware you don’t have to pay to see what is on your credit file. Under Australia’s credit reporting laws, you can access your credit report for free from all of Australia’s credit reporting agencies annually. This allows you to keep an eye on your credit information and make sure it is accurate. You can and should make a request with each agency for your credit report – as there might be different information listed with different agencies. This copy is sent within 10 working days.

Equifax (Formerly Veda Advantage) is the primary credit reporting bureau in Australia (holding approximately 16.5 million credit files), as well as Dun & Bradstreet, Tasmanian Collection Services (if in Tasmania) and new entrant Experian.

If you need it urgently you can pay for your credit report.

Most credit reporting agencies also offer a faster service (usually within 24 hours) for a fee.

You can also check your credit ‘score.’

[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”][At the time of writing] Only one credit reporting bureau, Veda Advantage (Now Equifax) had provided their credit score to the general public. The VedaScore can be obtained for a fee, and can be handy to obtain, especially if you intend to apply for major credit such as a home loan soon. Veda explains their score:

Your VedaScore is calculated based on the information held in your credit file at a given point in time. Your VedaScore is dynamic and predicts the likelihood of an adverse event, like a default, being recorded on a credit file within the next 12 months. Your VedaScore shows where you sit in relation to other credit-active Australians in our credit-reporting database. This may be used by lenders as part of the credit assessment process; however, lenders will also use their own criteria and policies when assessing your application not only your VedaScore.

Once you have your credit report, you need to check your personal details.

If you obtain a copy of your credit report, the first thing you should do is run over your basic personal information to make sure it is correct and to make sure the information is yours. If it isn’t, you should take steps immediately to rectify this. Possible explanations for conflicting personal information could be:
- the wrong person is attached to your credit file name or
- you may be a victim of identity theft.
Contact the relevant credit reporting bureau who can help you get to the bottom of it.

You can then look at your Summary Characteristics or summary of information.

This will tell you at a glance the items of note on your credit report such as any adverse listings.

Importantly, check for cross-references.

This is another point where you may have cause to find people other than yourself attached to your credit file. This can happen if someone with a similar or the same name resides in your area or uses the same Credit Provider as you. Any issues with cross-references can be fixed through notifying the Credit Reporting Bureau.

Your credit history goes into detail about your credit habits.

Items of note which could be impact your ability to obtain credit could include adverse lisitngs such as defaults, Court Writs and Judgments, bankruptcies and debt agreements, late payments. It could also include excess credit enquiries, and excess credit accounts or amounts, just to name a few.

How your credit history can impact you.

All adverse listings could lower any credit score calculated. In this current economic climate even too many credit applications are often considered to be ‘black marks’ on the individual’s credit file in addition to defaults, clearouts, Court Writs and Judgments.

The impact of late payment notations on the credit score or on assessment of credit suitability is still unknown since the information is only newly available to lenders. Speculation has centred around just how many late payment notations will be too many to mean (a) credit is refused or (b) a higher interest rate is offered. Most times the loan options available to you are at significantly higher interest rates in order to cover the risks associated with taking on someone with bad credit.

What if my credit report is wrong?

If there’s anything on your credit report you disagree with, you can contact the credit reporting bureau to fix it. If it’s something significant like an adverse which you believe is inconsistent, unfair, or incorrect it should be disputed. Credit rating errors could be anything from the credit listing placed by the Credit Provider on the wrong credit file; to the basis of the credit listing being unfounded; to incorrect notices being provided to the individual; right through to system errors and incorrect spelling, to name a few examples.

You can attempt to fix it yourself.

This involves dealing directly with Credit Providers in your dispute. The process of dispute is not always easy, particularly if you are time poor, or do not have the necessary skills or knowledge of the relevant legislation pertaining to your case. This doesn’t mean you can’t fix your unfair credit listing without knowing it, but it makes a massive difference to the chances of removal to have this knowledge (or to employ someone who does).

Some people have in the past made a verbal dispute with their Credit Provider about their listing only to be told it can’t be removed, but can be marked as paid if it has been paid. This can deter individuals from pursuing their case of dispute. Put simply, a Credit Provider should remove a credit listing if it has been demonstrated that the listing was placed unlawfully on the credit file. It is in the demonstration that many people fall short.

If your Credit Provider refuses to remove the credit listing, then you can take your case to the relevant industry Ombudsman. This can be helpful in many cases, but in some cases it may not be in your best interests to pursue this course. It is important to note that the Ombudsman acts impartially and is not advocating for you. This means there may be areas where they can’t or won’t investigate.

You can get help to dispute your credit listing.

You can seek out external help from a third party such as a lawyer focused on credit law. A credit reporting lawyer can act in court processes; identify legal issues; provide legal advice; prepare binding agreements; conduct formal negotiations and follow through with enforcement where necessary. A credit reporting lawyer can also make formal recommendations to Credit Providers making reference to the law, and make representations on behalf of clients.

You can also seek help from a credit repair company. A word of warning though, it is important to do your homework to avoid getting ripped off. There are some ‘dodgy’ players out there who may seem cheap, but who in the end could cost you and your dispute case dearly. Consumers can consult the Credit Repair Industry Association of Australasia at www.criaa.org.au for advice on choosing a credit repairer.

Be careful about cheap and nasty credit repair. If you can’t afford to employ a demonstrated reputable and ethical advocate, consider disputing your own case instead.

Need help to check your credit report?

MyCRA Lawyers can help you check and analyse your credit rating and help assess your credit worthiness.

Get a credit file analysis.

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18/03/2014
Happy Australia Day 2014

Happy Australia 2014 from a few of the gang at MyCRA Lawyers

Happy Australia Day 2014!!!

24/01/2014
Credit repair ‘test case’ has broker over the moon

Happy New Year from MyCRA Lawyers. How can we make 2014 better for you? We can recommend our credit dispute and credit file consultancy services!

A shameless plug perhaps – but here’s why we’re doing it…

By Graham Doessel, Non-Legal Director of MyCRA Lawyers.

We want to tell you about one of our broker clients, who has just jumped in with us just before Christmas, and been over the moon with the results.

Up until now, this broker had been turning clients away who had bad credit. But he’d recently heard about our success from someone he trusted, and decided it was time to give us a go.

Why didn’t he start earlier?

Understandably, when you find out you or your clients have bad credit it can be hard to know what to do.

Many people in the past have been hesitant to consider having their credit file repaired.

And for brokers, there is a fair bit of reputation at stake sending someone off to do something you don’t know much about, and the last thing you want to do is threaten that.

Add to this the criticism that is floating around about credit repair, and some clients and their brokers can be reluctant to test the waters.

Since MyCRA Lawyer’s inception as an Incorporated Legal Practice focusing on credit disputes, fears have been alleviated for many who were watching credit repair with interest but trepidation, including our new broker client.

He sent us his first client, which he said after the fact was really just a test to see how we’d go.

His client had great success – the default on his credit file was removed in less than 2 weeks. His client will now be able to apply for the home loan at interest rates he deserves.

On top of that, and probably more importantly, the broker was really happy with how he and his client were treated by our staff – including the advice that was given, and the follow up that was provided during the course of the credit repair.

His great experience meant he will be referring any other clients he comes across who have bad credit to us. He no longer has to turn them away, and he has found a firm whom he trusts, and whom he trusts with his most important asset, his clients.

If you are also watching with interest, curious to learn about credit repair but afraid to test the waters…jump in and find out whether you or your clients might be suitable for credit repair with our law firm – focused on credit file consultancy and credit disputes.

The assessment stage is quite rigorous, so you can be sure if we do decide to take the case on, we have a strong reason to go in and fight for that credit listing’s permanent removal from your credit file.

Call MyCRA Lawyers if you have more questions about what we do. Ph 1300 667 218 and we can talk you through what’s involved as well as give more specific help for your case. MyCRA Lawyers are qualified to perform legal services.

Image: Idea go/ www.FreeDigitalPhotos.net

07/01/2014
How will the changes to the Privacy Act coming in 2014 affect borrowers?
Recently I was asked to participate on a panel of finance and credit experts, answering consumer questions on aspects of credit impacting credit card users. The question, ‘How will the changes to the Privacy Act coming in 2014 affect borrowers?’ is a really important question – but one which many Australians don’t think to ask. Thankfully someone did. Read what our panel of experts has to say about how the changes can impact you and your credit rating.

By Graham Doessel, Founder and CEO of MyCRA Lawyers.

This interesting article has been extracted from creditcardoffer.com.au website – a subsidiary of Credit World.

Ask An Expert: How will the changes to the Privacy Act coming in 2014 affect borrowers?

Written by Kalianna and posted on November 28, 2013
Expert Opinion: In our inaugural ask-an-expert question, we asked about a serious change to credit reports that we know will affect a wide range of credit card applicants;

How will the planned changes to the Privacy Act commencing March 2014 affect someone applying for credit? Will people be labelled as bad credit who were not before?

There are some changes coming in March 2014 that will impact everyone in Australia with a credit file – especially those looking to apply for a new credit card or loan in the next few years – so most adults aged 18-55. For a start, lenders will be able to see much more information than they can now when they request your credit file after you apply for a new card or loan.

Australia is moving towards a ‘positive’ credit reporting environment, where a good history with repayments and signs that you are reducing your overall debt will be rewarded and viewed positively by lenders. At the moment, lenders can see ‘negative’ information on a credit file. This includes:

Accounts that have been applied for (but not, for example, credit limits on credit card applications all of the time)

Defaults – where a payment is more than 60 days late

Default judgments or bankruptcy where a person has been the pursued through the courts in a debt collection action

The system will be similar to what exists in the United States, and the third credit reporting agency to enter Australia, Experian, may also have an impact. In general Australia’s credit reporting agencies have stated that they believe it could take around 12 months before the same level of data is reported on Australian borrowers as what the US FICO system provides for borrowers there.

Members of our expert panel agreed that those who want to apply for new credit in 2014 will be most affected by the changes, rather than those who already own their own home etc, though applications for refinancing or adding to your existing debt will not be immune to credit checks.

If you are wondering whether you might be considered ‘bad credit’ from next year, then pay close attention to the advice given below and start doing your research into ways to improve your credit file and keep your score high enough to get approved for the amount you want when it comes time to borrow. Our experts have highlighted areas to watch, and what lenders will be interested in so you know where to concentrate your efforts.

Graham Doessel

Non-Legal Director, MyCRA Lawyers

Someone applying for credit after March next year will have more information about them shown to lenders who request a copy of their credit report.

There will be five new data sets available to lenders,

repayment history information;

the date on which a credit account was opened;

the date on which a credit account was closed;

the type of credit account opened;

and the current limit of each open credit account.

Quite possibly there will be more people considered to have ‘bad credit’ after March 2014, once new laws are implemented. The most significant credit rating damage could come from repayment history information.

Australian consumers are currently under the microscope with their repayments. Since December 2012, individuals who are more than 5 days late in repaying licenced credit (eg credit cards and loans) have a late payment notation marked against their name. This information will be available to lenders on the individual’s credit report from March 2014. This is in addition to the current default information which is shown after repayments fall more than 60 days in arrears.

While many have argued that only a pattern of late payment notations would hinder access to credit, I have maintained that even one or two late payment notations could at least affect the interest rate an individual is offered.

This change could trip up many Australians and mean people are unnecessarily banned from credit due to simple billing mistakes, lost paperwork and other payment mishaps.

A history of applying for the ‘wrong’ type of credit could also be detrimental and possibly pull down any credit score calculated on the individual.

Nick Vamvakas

Chief Risk Officer, ME Bank

With the introduction of the privacy act more information will be recorded about a person’s credit history. This includes positive credit behaviours, which were never previously recorded and some negative behaviours that weren’t previously recorded such as late credit card repayments (previously only credit card defaults were recorded). Overall this new, more complete, approach gives credit providers a better picture of a person’s credit history and has significant benefits for people applying for credit. Their credit history will be more accurate and provide a truer and fairer reflection of their ability to manage the credit for which they’ve applied.

Dominique Bergel-Grant

Founder, Leapfrog Financial

Without doubt there are changes around the corner that will significantly impact all those applying for credit after March 2014. The changes to the Privacy Act will enable prospective lenders to know more about you than you probably even do. From details about account repayment history, types of accounts and detailed credit information about the account status.

This is far more detail than what they currently have access to and will ensure nothing unwanted slips through. A big difference is the repayment history of up to 24 months being provided is a significant increase to the typical 3-6 months most lenders currently require. So being well behaved with your credit will be even more important than ever otherwise you will find yourself needing to explain any inconsistencies which could lead to a loan application being declined.

Heidi Armstrong

CEO, State Custodians

The changes to Australia’s credit reporting system will have a greater impact on those applying for credit. Not only will credit providers be able to see any repayment defaults, bankruptcies or past credit applications, but they will also have access to the past 24 months of your credit repayment history going back as far as December 2012.

This can be either a good or bad thing, depending on your financial situation. If you are diligent with your repayments and always pay bills on time, it could help improve your chances of success when applying for credit. However, if you have been late or missed repayments in the past 24 months, lenders will be able to see this and may factor this into their decision whether to approve or decline your credit application. Therefore, it is more important than ever to make an effort to keep your repayment history clean.

Steve Brown

Director, Consumer Risk Solutions at Dun and Bradstreet

The changes to Australia’s credit reporting system will improve the detail and accuracy of the information used to assess applications.

For those applicants with a history of sound financial management, the additional information will provide a more detailed view of their creditworthiness. The addition of repayment history data will also allow individual’s with a previous credit slip-up to demonstrate they have rectified their credit position by making regular and on-time repayments.

Equally, with provisions to record payments made five-or-more days late, changes to Australia’s credit reporting system mean that those people who regularly make late repayments will become more visible to credit provider.
If you would like to know more about upcoming Privacy Law changes, visit our blog www.mycra.com.au/blog.

Image: Stuart Miles/ www.FreeDigitalPhotos.net
03/12/2013
Help with credit card applications
Recently I was asked to participate on a panel of finance and credit experts, answering consumer questions on aspects of credit impacting credit card users. A common question “How long should I wait before applying for a new credit card?” was asked of our expert panel. If you wondered about this yourself, you should read this article, and have a look at what experts on the panel have to say which could help you and your credit rating.

By Graham Doessel, Founder and CEO of MyCRA Lawyers.

The article seen here below in full, is published on credit card comparison website www.creditcardoffers.com – a subsidiary of Credit World.
Ask An Expert: How long should I wait before applying for a new credit card?

Written by Kalianna and posted on December 2, 2013
One of the most common questions we get at Credit Card Offers is whether or not it is too soon to apply for a new credit card or other credit product after taking up an offer. It’s a confusing situation for us as borrowers, with some lenders saying three months is long enough to wait, and others advising that two fresh applications within one year is the maximum we should be lodging if we want our credit files to stay in tact, including our expert Dominique Bergel-Grant, whose full answer to the question is below. Dun & Bradstreet’s Steve Brown tends to agree that too many applications will simply raise a red flag for lenders, and Dun & Bradstreet is one of the major credit reporting agencies operating here in Australia, which supplies information on consumers and businesses. The definition of ‘too many’ credit applications each year is open for some debate too, as according to State Custodians CEO Heidi Armstrong, up to four or five applications per year can be acceptable, depending on other factors.

As another of our experts, Graham Doessel points out, some lenders may even decline your application automatically if you have made too many applications – and that won’t matter whether or not you actually took up offers of credit after those applications. If you find yourself in that situation, you may have an option to speak to lenders and/or credit reporting experts to rectify the situation. ME Bank’s Nick Vamvakas does mention that when lenders have access to more information, they may give less weight to factors such as the number of previous applications if they can see other good reason to believe you are creditworthy. It’s bound to be harder where you have been rejected by a computer though.

Doing balance transfers with credit card debt can also provide mixed signals – because lenders will see that you have simply moved debt onto another credit card, but at the same time they should also be able to tell that you are paying off that debt each month more easily with the extra information that will be available. That means that if you’re using them correctly, balance transfers can be a useful tool for your debt and your credit file, and not damage your ability to borrow.

The whole situation will be clarified further in 2014, when lenders gain access to a 24-month repayment history on borrowers’ credit files. We will start to see, over the course of the next year or two, what approach lenders take based on the new credit scoring system and the new information available. Until that time though, we can give you these words from those in the industry to take into account before applying for your next credit card or loan. Read each expert’s response and keep the information in mind when considering a new credit card or loan.

In our second Ask An Expert panel question we have responses from four different experts. Each lays out the key considerations lenders take into account, and different variables that you should be aware of before applying for a new credit card or credit product;

“How long should customers wait for applying for each new credit card? For example when transferring an existing balance from one card over to another to take advantage of 0% interest offers. What effect does this have on the customer’s credit score?”

Graham Doessel

Non-Legal Director, MyCRA Lawyers

Customers should definitely take precautions when applying for credit. The volume of credit people apply for and the type of credit can hinder any future credit application.

In terms of how long customers should wait before applying for each new card – it really depends on each lender. However, we are aware that some Credit Providers will have an automatic decline with individuals who have applied for credit 3 times in the last 6 months, or show 6 credit applications in a 12 month period.

In terms of credit applications impacting the credit score the general rule is:

Customers should only make a credit application they have full intention of pursuing.

Be wary of applying for ‘high interest’ or ‘bad credit’ loans –a credit ‘scoring’ method may shave points off your score through this type of credit application.

Seek cautious credit limits within your budget. Your credit score may be affected by credit limits which are considered too high.

Nick Vamvakas

Chief Risk Officer, ME Bank

In the old credit reporting regime, which will be replaced in 2014, the number of credit applications was one of the few indicators available to credit providers to judge an applicant’s suitability to receive credit. It was a negative indicator and a larger number of credit applications in a short period could create a negative impression. While the number of credit applications may still be used as a negative indicator in the future, it will carry less weight as other indicators will now be available to credit providers. It is therefore likely to have a smaller negative impact on borrowers’ credit scores.

Steve Brown

Director, Consumer Risk Solutions at Dun and Bradstreet

Each credit provider will have their own credit and risk scoring approach, however applying for multiple credit cards, loans or other finance in a relatively short period of time will show up on your credit report and be a potential red flag for lenders.

Numerous applications in quick succession can indicate a high level of risk and an irresponsible appetite for credit, especially if you have unpaid debts to begin with.

Heidi Armstrong

CEO, State Custodians

Each time a person applies for credit, it impacts their credit score. Around 4-5 credit applications per year is generally within the range of acceptable behaviour from the perspective of a main-stream lender. Therefore, if a customer is only applying for one or two credit cards per year (based around a 6 or 12 month balance transfer offer) then this is not necessarily seen in a poor light, provided the total number of credit enquiries during the year remain within the acceptable limits. Extreme care would have to be taken to only apply with one credit card provider and not put in multiple applications at the one time.

A lender can see what different credit applications a customer has made and too many enquiries will create a ‘busy’ credit report and result in a poor credit score. If customers are continually rolling the same amount of credit card debt over to a new card, it means they are not actually paying the debt off and lenders will start to look upon this unfavourably. Continuously transferring credit cards is a short term solution and doesn’t fix the real problem of being in debt. If customers wish to take advantage of interest free offers, they should try to only consolidate once and then make an effort to pay off the debt as soon as possible.

Dominique Bergel-Grant

Founder, Leapfrog Financial

As a rule you should not apply for more than two new credit facilities every 12 months. When lenders see more than this they start to become concerned about your motives, and although it could be due to chasing a low rate it will still be a mark against you.

Remember some lenders systems have automatic credit scoring, so if you fail due to multiple credit application then your application will simply be declined. The biggest tip is to get a copy of your credit report and know exactly what the lenders will be finding out about you. I recommend all my clients apply for a copy of their credit report once a year both to check for any errors, but also to ensure there has been no fraud.
We hope the help offered here by these experts has helped you to know more about not only credit applications, but credit reporting in general. If you would like to know about Australia’s new Privacy Laws and how they might impact you, read our next post.

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03/12/2013
Law Firm lends its muscle to credit rating wars.

Media Release: National

Law Firm lends its muscle to credit rating wars.

19 November 2013

Thousands of consumers are being locked out of credit because their Credit Provider has blacklisted them unfairly, and a new national law firm is stepping up and taking positive action to fight for them.

MyCRA Lawyers’ Graham Doessel – a pioneer in credit repair who is Non-Legal Director of this breakthrough legal firm focused on credit file consultancy and credit disputes – says the practice means business when it comes to helping those disadvantaged by credit rating mistakes.

“People all over the country are experiencing this debilitating issue and refused finance for five years. If a bad credit listing such as a default has been applied to the consumer’s credit file and it shouldn’t be there – it’s important that someone stands up and advocates for them,” Mr Doessel says.

It doesn’t have to be a big amount which the Credit Provider claims is owed to create a default, nor does it need to be a serial offence.

“Some Australians are snowed under with credit and genuinely robbing Peter to pay Paul; and some have no regard for making payments on time. These people can owe thousands to their Credit Providers and should be weeded out by the credit reporting system.”

“But there are many more ordinary people who are tarnished with the same brush due to one-time oversights, Credit Provider errors, and unsettled disputes. Even accounts of $100 can see them locked out of credit,” he says.

Bad credit notations are listed with credit reporting agencies such as Veda Advantage, who hold the credit files of 16.5 million Australians.

But despite credit file accuracy resting with each individual, a recent survey by Veda revealed 80% of Australians have never checked their credit file.[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]

“This lack of awareness can foster a culture of complacency if those that are supposed to be taking care with credit notations effectively have no watchdog to ensure correct and fair procedure is followed,” he argues.

He goes on to say, “often if the notation is there in error it’s not until the consumer applies for credit and is knocked back that they even begin to start to unravel the mess on their credit rating.”

Whilst there are free channels for disputing credit listings, Mr Doessel says in many cases consumers have neither the time nor skill to build or argue an effective case.

“New changes are coming through for credit reporting which could increase the number of Australians with bad credit. We forsee a great need for good advocates going forward, and we believe the best way to do that is by being part of the legal process,” Mr Doessel says.

His passion for helping consumers is a match for MyCRA Law’s Legal Practitioner Director and Principal Solicitor MaryAnn Armstrong.

She was once told that good people do not make good lawyers, and Ms Armstrong is determined to prove them wrong.

Armstrong and Doessel have built a team of like-minded people from Solicitors through to Receptionists who are all focused on helping consumers.

Ms Armstrong says, “Lawyers have a notorious reputation for helping themselves first and the client second, but I went into law with the viewpoint that everyone needs and deserves help in some way – and if we can provide that – even if it’s just furthering awareness of these issues, that’s what I will do.”

She warns consumers experiencing credit issues to be wary of shonks out there who are offering to repair bad credit and providing legal advice or performing a legal service without a practising certificate.

“Credit repair is not a formally regulated industry and while there are some good companies out there, there are also plenty of cowboys preying on consumers desperate to get finance and delivering very little in terms of quality or results,” she says.

“In some instances if people can’t afford good credit repair, they may get better results doing the leg work themselves if they have the time, and accessing the free channels for dispute, rather than paying good money to a company which seems cheap, but in many cases has minimal legal training and therefore little recourse for unethical behaviour, and could end up costing them dearly down the track,” Ms Armstrong says.

You can check if a credit repair firm is an Incorporated Legal Practice with the relevant Law Society (there’s one in each State).

MyCRA Lawyers are offering a free credit check to readers who have never checked their credit rating. For details call MyCRA Lawyers tollfree on 1300 667 218.

For existing credit issues, an in-depth Credit File Analysis and credit file consultation can also be obtained.

/ENDS

For interviews, please contact:

Graham Doessel – Non- Legal Director MyCRA Law Ph 3124 7133

MaryAnn Armstrong – Legal Practitioner Director, Principal Solicitor MyCRA Law Ph 3124 7133

For general media enquiries, please contact:

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

MyCRA Lawyers 246 Stafford Rd, STAFFORD Qld

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

MyCRA Lawyers…permanently removing defaults, Writs and Judgments from credit files.

[i] http://www.veda.com.au/sites/default/files/images/ycai_launch_infographic_final_190913.pdf

Image: foto76/ www.FreeDigitalPhotos.net

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19/11/2013
Interest rates cut to record lows at 2.5%

The Reserve Bank of Australia has cut its cash rate to a low 2.5% – lower than during the GFC. The Sydney Morning Herald says several banks wasted no time in passing on the rates cut to their home loan customers. National Australia Bank and Bank of Queensland said they would both pass on today’s 0.25 percentage point cut in interest rates to the home loan customers in full. This is good news for home buyers with a good deposit and a good clean credit file – but maybe not such great news in the long term for the Australian economy.

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

As Australian Broker reported today, the speech made late last week by RBA governor, Glenn Stevens, also indicated another rate reduction was on the cards, with Stevens admitting the RBA was becoming increasingly concerned about major areas of the Australian economy, particularly the passing of mining and credit growth ‘booms’.

Many brokers will be taking this information straight to clients, as 1st Street Home Loans founding director, Jeremy Fisher, outlined in an interview with Australian Broker earlier today.

“First and foremost, we’ll get in touch with any clients that are due to settle and looking at making any necessary changes to their loans. And then we’ll go back and review any clients that are, I guess, a ‘watchlist’. So it’s pretty much just keeping our clients informed of the change.”

Fisher said 1st Street sends out a bulletin to all their clients immediately following RBA cash rate announcements in order to keep them updated.

“Then we just go back to our watchlist and touch base with everyone that’s kind of doing things as we speak – because that may or may not influence what they’re doing.”

Mr Stevens told the Sydney Morning Herald he expected the Australian economy to continue to grow below trend in the near term as mining investment falls, and for inflation to remain consistent with the medium-term target as labour costs moderated.

He added that the Australian dollar remained “at a high level” despite losing about 15 per cent of its value since early April, and welcomed a further depreciation of the exchange rate to help foster a rebalancing of growth in the economy.

Several analysts said the RBA could ease rates again later this year as the country continues to grapple with a slowing economy amid an uneven transition away from mining-led growth.

Taking advantage of interest rate cuts.

With this interest rate cut, 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 check their credit report first, 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 by being able to take advantage of those interest rate cuts with the mainstream lender of the buyer’s choice.

To find out more about the benefits of using a credit rating repairer to dispute credit listings, 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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06/08/2013
The bad credit nightmare affecting Australian home buyers.

Media Release

The bad credit nightmare affecting Australian home buyers.

25 July 2013

Consumers all over Australia every day are faced with surprise bad credit when they apply for a home loan, and according to an advocate for credit reporting accuracy, many consumers get railroaded into living with debilitating defaults on their credit file that simply should not be there.

CEO of MyCRA Credit Rating Repair, Graham Doessel says many home buyers end up angry and disappointed when their finance is declined due to bad credit, particularly when they believe their credit file shouldn’t have any black marks.

“While paying your bills on time is the best way to ensure you have a clear credit file, it does not guarantee your credit report will be clear. The nature of credit reporting is that there is much opportunity for human error and these errors are usually not uncovered until people go about checking their credit file. At the time of finance application, it is too late,” says Mr Doessel.

He says often consumers who query a credit listing with their Credit Provider are told that credit listings cannot be removed, but can be marked as paid if they have been paid. But he says the ramifications of bad credit are so huge, consumers should not be burdened by them if there are inconsistencies.

“A default – even a paid default – will impact your ability to obtain credit generally for the entire time it is listed on your credit file – which is 5 years.”

“If you are convinced a credit listing shouldn’t be there, or is inaccurate in some way, then you should dispute it,” Mr Doessel says.
5 Steps to Fixing Your Bad Credit History
1. Determine what account the default is for. If you don’t have a copy of your credit report, you will need to order one. If you haven’t ordered a copy in the last 12 months, it will be provided at no cost from the credit reporting agencies in Australia. They are Veda Advantage, Dun & Bradstreet, Experian, and TASCOL (if in Tasmania). You may have listings with one or all of these credit reporting agencies. They will take 10 working days to send you a copy of your report. For a fee you can have one sent to you urgently. On your credit file, will be the company the default is with, and an account number. This should correspond with an account you have with them. If it doesn’t, or if you don’t have any accounts with the company in question, there is a good chance there may be a mistake on your credit file.

2. Gather all your information first, and try and determine how the default made its way to your credit file. Before you call the company in question, sort out what you know about the situation. Have they made a mistake? How have they made it?

3. Write to the Creditor to ask for information on the account. You may need to find out more about how the default got there. Every company keeps a file on its customers and you can write to them and request your account information to date.

4. It is going to be hard going. Most people find it really hard to correct their credit listing themselves -especially if it’s complicated. For one, the Credit Provider has to comply with a whole heap of legislation that crosses different codes, and if you don’t know legally where they may have made errors – it’s pretty hard to persuade them they have done the wrong thing. Secondly, negotiating anything on your own behalf can be tricky – the old foot in the mouth routine can get you into trouble and see you stuck with the listing for the whole term. If you are able to show cause as to why the listing was put on your credit file unlawfully, there is a chance it will actually be removed.

5. You may need an advocate. If you find out you have bad credit, and you have neither the time, skill, nor the patience to investigate and dispute your credit listing, you can consult a credit repairer. They will conduct an audit-like investigation of your case and the circumstances surrounding the credit listing, based on the relevant legislation applicable to your case. And most importantly, they will probably think of things you had never thought of to strengthen your case for the default removal.

Mr Doessel says credit repair is not suitable for everyone, and sometimes if people have ‘done the crime’, they may need to do the time. He says if you are a serial offender for late payments, or if you are currently struggling to keep your head above water, then new credit- especially major credit – is NOT going to make it all better.

“But if you have been unfairly treated, or there has been a mistake on your credit file, then you have a right to insist on that inconsistent listing to be removed or corrected,” he says.

He says avoiding bad credit requires a combination of good repayment habits, good communication with Credit Providers, and regular reviews.

“Every consumer should order a copy of their credit report regularly – at least once a year – to ensure everything reads accurately. It is also important to check your credit report before applying for any major credit – so if there are any inconsistencies they can be addressed prior to the finance application,” he says.

/ENDS

Please contact:

Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

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

Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

MyCRA Credit Rating Repair is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

Credit Rating Errors In Australia: Background information

To date, there are no official statistics provided to the Australian public on the number of defaults or other credit listings on Australian credit files.

Likewise, there are currently no statistics on the numbers of disputed credit listings, or on listings which have been removed or altered on Australian credit files.

This arguably makes it difficult to obtain any scope on the prevalence of bad credit and on the prevalence of credit reporting inconsistencies. We argue lack of information on the number of disputes makes it difficult for consumers to have any scope for the likelihood they may succumb to credit reporting errors, and may make them less likely to routinely check their credit file for inconsistencies.

In 2012 a Veda Advantage spokesperson commented on the possible number of errors on credit reports within Veda. He admitted errors within their system alone amounted to 1%. “We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Head of External Relations, Chris Gration told Today Tonight. (i)

The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). (ii)

It revealed 34% of the credit files surveyed contained 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 ACA report said. (iii)

Transferring those figures from the Choice study to the number of credit files in Australia today, could balloon the figures to almost 5 million errors, inconsistencies or flaws. But unfortunately these figures are only estimates – due to the lack of real statistics.

(i) http://au.news.yahoo.com/today-tonight/latest/article/-/10670080/credit-ratings-check/

(ii) http://www.smh.com.au/articles/2004/02/09/1076175103983.html

(iii) http://www.caslon.com.au/reportingprofile3.htm

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25/07/2013
Payday lending: why it’s all about to change

The number of payday lenders is about to shrink due to new regulations, according to Paid International (formerly First Stop Money). Is this a good thing for those people on the fringe? We look at what the changes are, how they will impact borrowers and those people who don’t have access to mainstream credit due to bad credit.

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

Last year the Australian Government decided to start restricting interest charges to payday lenders through the Consumer Credit Legislation Amendment (Enhancements) Bill 2012 which changed the playing field for payday loans, as well as rules around financial hardship. The Government wanted to “stop loan sharks from exploiting vulnerable Australians,” Financial Services Minister Bill Shorten said in a statement to the media following the Bill’s passing in Parliament.

“The Gillard Government has moved to reduce the financial harm caused by lenders who ruthlessly impose excessive fees and charges simply because vulnerable consumers cannot obtain alternative access to credit,” he added.

The Enhancements Bill introduced a cap for small amount credit contracts where the amount borrowed is $2000 or less, and the term is 1 year or less. For these loans the maximum any lender can charge is an establishment fee of 20 per cent of the amount of credit upfront and 4 per cent for each month of the loan. This provides for maximum charges of $72 on a loan of $300 over 1 month.

As Banking Day reported last week in its story ‘Payday loan market in transition‘, the introduction of interest rate caps is the second piece of major regulation directed at the payday lending industry this year. The other change will be in the area of credit assessment – intending to ensure potential borrowers aren’t over-obligated.

Providers of small-amount credit contracts must review clients’ bank statements for the previous 90 days to verify their income. Loans with terms of less than 16 days are prohibited, unless it is an authorised deposit-taking institution offering a continuing credit contract.

A loan will be presumed to be unsuitable if the applicant is in default under another small-amount credit contract or has been a debtor under two or more small-amount credit contracts within the previous 90 days.

If a borrower receives 50 per cent or more of their gross income from Centrelink, no more than 20 per cent of their income can be allocated to loan repayments.

The changes to payday lending taking place now are predicted to force the industry to “change dramatically over the next few years”.

The chief executive of Paid International, Tim Dean predicts that payday lending will as an industry, consolidate.

“Only a small number of very efficient operations will find the new rules workable,” he told Banking Day.

Paid International has recently changed its name from First Stop Money, which was reportedly part of a re-positioning of the business.

Dean said that over the next few months Paid International would launch a suite of new products aimed at “middle Australia”.

“Our customers are not Centrelink clients,” he said.

In an emergency situation, people who are stuck with bad credit often turn to payday loans. Including those people that aren’t able to obtain a hardship variation for their circumstances, and have a default or other negative listing (or even too many late payment notations as of next year) placed on their credit file.

Capping the interest rate on pay day loans is a fair move, and restriction on access for those over-committed Australians is also probably a good idea. But I see the bigger picture. Some people who are forced into these situations are there because the system has failed them. Not all defaults deserve to be there, but they all have the same outcome for prospective borrowers. They are banned from obtaining mainstream credit.

Where people are getting let down is in copping the mistake in the first place, and also in the correction of the credit reporting mistake. Whilst the powers that be say that there is a legitimate avenue for correcting credit reporting mistakes for the individual, any consumer who has had the pleasure of dealing with a big company for even small issues will attest to the difficulty in getting a straight answer, getting someone who knows what they’re talking about first time, and ultimately correcting the mistake. This is a common complaint of many of our credit repair clients. Most people are told if it’s paid up they can mark it as such but that’s about it.

So whilst I applaud the new laws, they can’t be looked at exclusively. Whether we’ll have a fairer credit system for all Australians remains to be seen following the implementation of amendments to the Privacy Act in March. Whether Australians will get a ‘fair go’ or find themselves in new hot water – is what we’ll be looking at closely over the next couple of years.

If you have been refused mainstream credit and need help with disputing a credit listing you believe is unjust, unfair or just shouldn’t be there, contact a Credit Repair Advisor on 1300 667 218.

09/07/2013
The credit slip-ups that stop you from buying a home

Press Release

The credit slip-ups that stop you from buying a home

21 May 2013

Latest housing figures show the property market is on the up and up, but a consumer advocate for accurate credit reporting warns that people can put their chances of buying a home at risk by making some basic mistakes with credit.

CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many buyers get caught out with bad credit at the time of finance application and are refused a home loan unnecessarily.

“Many people are shocked that they can’t buy a home because of their credit report, as they always pay their bills on time, but there are some basic mistakes that people often make with credit that can see them refused finance – and they can be easily avoided,” Mr Doessel says.

He says bad credit or credit impairments are currently shown on the credit file for between 5 and 7 years, and most often impact the credit file holder’s ability to get mainstream credit.

“People can also be forced to pay a much higher interest rate because of bad credit. So it is ideal if people can avoid the mistakes in the first place, or fix them before they make a home loan application,” he says.

The advice comes as the Australian Bureau of Statistics announced last week a recorded increase in loans during March, with investment housing commitments rising 1.4% and owner occupied rising 1.1%. [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 good general credit education in the community is required to take full advantage of the renewed market confidence.

“All buying sectors, including Australia’s flailing first home buyer market, could be enhanced by demonstrating to them just what good decisions with credit are, and how people can prevent credit refusal,” he says.

5 Crucial Credit Mistakes Which Could Cost You a Home Loan

1. Paying bills late – even slightly late!

Previously it would take 60 days before a repayment fell into ‘arrears’ and a Credit Provider would list a default on your credit file. This can still happen, but from December last year licenced Credit Providers are reporting other repayment history. If a payment on a credit card, loan or similar is made more than 5 days late, it will be recorded on your credit file for two years. Too many late payments could impact your ability to get a home loan. [ii]

2. Making multiple credit applications

When choosing credit that’s right for you, by all means do research but only apply for credit or give your personal details when you’re sure you want to proceed. Many people don’t know that all credit enquiries are recorded on your credit file, and too many will be a detriment to your approvability – so only officially apply when you’re sure.

3. Not checking account statements

You should check all bills and statements when they come in, and query anything you’re not sure about. This includes if you have moved or changed accounts, and you don’t a receive statement from your Credit Provider. Any discrepancy should be disputed immediately so the issue is noted with your Credit Provider prior to the account being considered ‘late’ or in ‘default’.

4. Not Checking Your Credit Report

Most people don’t know that every year they are able to request a copy of their credit report at no charge from Australia’s credit reporting agencies, so you can see most of what the banks see about you. The report is provided within 10 working days, and if you need it sooner, you can pay. Many people don’t know they have bad credit, so it is important to check and if you believe you have been unfairly listed, to dispute it.

5. Taking ‘no’ for an answer.

Bad credit means you are locked out of mainstream credit for between 5 and 7 years. So if a Credit Provider says the listing is fair, and you believe it isn’t, you should take the matter further. If you are confident you have a clear case, then you can escalate your complaint yourself to the Credit Provider’s Ombudsman. The case must be pursued based on the Credit Provider’s adherence to credit reporting law. Alternatively, you can employ a credit repairer to make a case and dispute your listing with your Credit Provider on your behalf.

/ENDS.

Please contact:

Graham Doessel – Founder and CEO MyCRA 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.

——————————————————————————–

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

[ii] http://www.comlaw.gov.au/Details/C2012B00077

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21/05/2013
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

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16/05/2013
Privacy Law Reform To-Do List: Privacy Awareness Week 2013

In our last post for Privacy Awareness Week 2013, we set out some actions you can take now for your family to get you up to speed and ready for important changes to the Privacy Act 1988 (Cth) which will impact you. We include the specific things you can to do to support your ability to obtain credit and have your credit file looking its best when changes come into effect on March 2014.

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

What can you do to support your credit file and ensure you look your best to Credit Providers? It will be essential from now and going forward to be mindful of what may constitute bad credit. Although as a consumer you are not privy to your credit ‘rating’ score, a Credit Provider will be provided with a number based on your credit habits – and this will be used to help calculate your credit worthiness. Whilst it is not disclosed by credit reporting agencies the specific items which lower your score and how much by, traditionally there are some things you can do to which will help keep your credit-worthiness in check. We look at good credit habits, and what things you need to do when our Privacy Laws change in March 2014:

1. Pay on time, every time.

Your repayment history information is being collected now. It is imperative you make repayments on accounts by their due date to avoid having late payment notations recorded on your credit file and shown after the March 2014 implementation.

If you can’t pay on time, seek alternative arrangements with your lender – but be advised these new arrangements will be recorded on your credit file. This would always be preferable to a default listing though – especially if you can show good repayment history at those new terms – so there is a new incentive to get in and work it out with your lender prior to letting your accounts go into arrears and copping a default listing.

2. Check your credit file regularly.

Make a habit of checking your credit file regularly. You can do this for free annually through the Australia’s credit reporting agencies. There will be five new data sets of information available to Credit Providers who request a copy of your credit report. These will be:

– repayment history information;

– the date on which a credit account was opened;

– the date on which a credit account was closed;

– the type of credit account opened; – and the current limit of each open credit account.

It is essential that you take responsibility for the accuracy of your credit file information and even more so when the above new sets of information becomes available to Credit Providers.

3. Correct credit information which you believe is inaccurate, inconsistent or unfair.

If there is anything on your credit report which you believe rings untrue, or shouldn’t be there, you have the right to request this information be rectified. You will need to contact your Credit Provider to alter this information. You should do this before the information has any bearing on a credit application you may make in the future. You may contact a credit repair company to assist you with this if the change is a significant one, or if you expect resistance to the request. After March 2014, if your Credit Provider disagrees with your request to correct your credit information, you can have your dispute noted on your credit file and this would be worthwhile requesting if you believe your listing shouldn’t be there.

4. Take precautions when applying for credit.

You may not realise, but the volume of credit you apply for and the type of credit you apply for can hinder any future credit application you may make. Whilst it is a great idea to research credit before applying – you should only ever make a credit application you have full intention of pursuing. Too many credit applications will mean you are refused credit. And from March 2014 this will be clearly displayed on your credit report. Likewise, if you apply for too many ‘high interest’ or ‘bad credit’ loans – you could be penalised with a lender if you apply for a mortgage – especially with a credit ‘scoring’ method which may shave points off your score through this type of credit application.

5. Seek cautions credit limits.

You may have a credit limit of $10,000 – but only have used a quarter of that. This may not be to your advantage. If you’re not using it, don’t have it is the general adage. If you take out a credit card or other line of credit, it’s probably not wise to opt for a lofty limit. You could try to get it closer to what you intend to use. A Credit Provider will only see the credit limit and not the actual amount you have utilised on that limit. As with credit applications, any credit ‘score’ may be reduced by credit limits which are too high.

6. Make information security paramount.

Understand how lucrative your personal information can be in the wrong hands, and take steps to keep abreast of how it can be at risk from things like identity theft. Identity theft can lead to the stealing of credit through the fraudsters accessing your credit file. Victims can end up with defaults on their credit file and a ban on obtaining credit for 5 years. The Office of the Information Commissioner (OAIC)’s factsheet Ten Steps To Protect Your Personal Information gives you some guidance on how to do that. New laws will allow you to place a ban period on your credit information if you believe you may be at risk of identity theft, which can prevent fraudsters from accessing credit in your name – so if you do feel you may be at risk – acting quickly may save your credit file from misuse.

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Banner: Courtesy of OAIC

03/05/2013