MyCRA Specialist Credit Repair Lawyers

Tag: bad credit

  • Churning – who says it’s bad?

    Press Release

    churningChurning – who says it’s bad?

    12 April 2013

    Churning for self interest is without question a highly unethical practice for a broker to perform, but a consumer advocate says when it comes to expensive credit, there can be such a thing as an ethical churn.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says for clients who are currently sitting in a high interest loan, there are potentially tens of thousands of dollars which can be saved by their broker turning their loan over to mainstream credit, and he says it can happen easier than many brokers think.

    “It is often thought that if a client has bad credit, it is meant to be there, when in reality mistakes are extremely prevalent in credit reporting but it has in the past been difficult for individuals to make a case to dispute their credit listing,” Mr Doessel says.

    Traditionally clients with bad credit are steered by brokers towards the non-conforming loan market – but Mr Doessel argues they should first be given the right to have their credit listings assessed for compliance with current law.

    “A professional credit repairer will conduct an audit-like investigation on the client’s credit file – and in most cases there are compliance issues or out and out mistakes which can see the listing proven unlawful and be required to be removed from the credit file,” he says.

    He says this practice has seen his clients save thousands of dollars just in interest alone on a home loan.

    Comparison Table $400,000 loan over 30 years

    Repayment time frame Min. repayment on interest rate 10.5% Min. repayment on interest rate 6% Difference in interest paid.
    Monthly $ 3,658.96 $ 2,398.20 $ 1,260.76 
    Weekly $ 843.97 $ 553.05 $ 290.92 
    Yearly  $43,907.52 $28,778.40 $15,129.12

    Over an average three-year period in a non-conforming home loan a client with a $400,000 loan could be paying over $45,000 extra in interest.

    Mr Doessel says in these instances it is not only ethical for brokers to churn their clients, but they almost have an obligation to do so.

    “When we consider these figures, brokers are almost ethically obligated to ensure that no clients are paying this extra interest unnecessarily – which could involve going back through client databases and uncovering some of the basic circumstances surrounding the bad credit, or even more basically – by sending bad credit clients for a credit repair assessment.”

    “In the past we’ve found clients who are given that option to save themselves so much money are pretty grateful, they’re more likely to give brokers repeat business or to refer – and the advantage to using a broker becomes really evident to them,” Mr Doessel says.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

    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.

    Image: suphakit73/ www.FreeDigitalPhotos.net

  • Make a mortgage work for you: Taking a conservative approach to purchase price

    In this week’s ‘Make Credit Work for You’ we take a look at the biggest form of credit many consumers are likely to take out – finance on a home. Whilst a home loan is a unique form of credit in that it will generally appreciate over time, there are ways it can be an unsafe form of credit. We look at how you can minimise the risk to you and your credit file when you purchase your first home.

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

    In Australian Broker Magazine article FHBs urged to take caution when signing on to a home loan last week, a financial comparison website warned first home buyers they should be looking carefully at purchase price following research showing many are taking on more debt despite the relative stagnation of the housing market.

    Research by RateCity shows first home buyers are taking on more expensive mortgages on the back of steady growth in house prices over much of the past 15 years:

    According to the site, the national average first home buyer mortgage size almost doubled in the past decade, to $297,100 in January 2013 and FHBs are taking on almost three-times more debt than they were 15 years ago.

     If the average first home buyer loan size kept in line with inflation only over the past 15 years, RateCity estimates first time borrowers are taking on a further $133,869 (or 82%) above the inflation adjusted average loan size…

    Michelle Hutchison, spokesperson for RateCity, says that while there are good opportunities to enter the home loan market this year, FHBs need to be cautious about taking on too much debt.

    “Australia’s property market is looking positive for first home buyers with record low interest rates making home ownership more affordable and luring some buyers out of the woodwork. While prospective home buyers are starting to enter the property market, borrowers need to be careful about how much debt they can afford to take on.”

    If we figure that most home buyers are now falling into the category of Gen Y, Ms Hutchison’s statement is a wise one. Recent reports from credit reporting agency Veda Advantage show that Gen Y has the lion’s share of bad credit at 60% of all defaults. The most important thing for you as a first home buyer to do is to decide on a purchase price that suits your needs now, and in the future.

    We can ensure we don’t become part of those statistics and ensure the home is really affordable, by considering three things.

    1. Is this mortgage going to still allow me to live?

    Just scraping into a sky-high mortgage could be a detriment to your lifestyle and even your happiness. Do you have wiggle room between your repayments and your wages for savings or for lifestyle purchases? What if your income decreased slightly? Leaving a bit of room for emergencies and also just enjoying life can make all the difference and can mean the money you don’t use can go into extra repayments on your loan, and you can pay it off quicker. Having no room for incidentals will invariably mean if life throws a curve ball at you, you’ll be likely to end up in debt and with a default on your credit rating or worse – all because your purchase was too impulsive and just downright too much for you to handle.

    2. Can repayments be made with only one income?

    This is a big trap for couples – even if they don’t intend to have children in the near future. Accidents, sickness, break-ups and yes, children can put a strain on finances and can mean the mortgage is paid from only one income for a period of time. Can you cope with the mortgage if this happens?

    3. How much equity do I have in the home?

    This may seem like a trick question, as really first home buyers have very little equity when they first enter a mortgage – but the bigger the deposit in relation to your purchase price, the more equity you will have, and the more freedom you will have. Having equity will make changes such as refinancing easier, and if for any reason you need to sell the home, you will be less likely to be left with a debt.

    When we think about equity, we can also consider future equity. To capitalise on equity it may be best to have a good think about the area you are buying in in relation to your purchase price. Is this area likely to grow much over the next 5-10 years? Is the type of property I am buying likely to be sought after in the area? Is it close to the median house price for the area? For instance, you might be better to buy an apartment in an inner city area which is going to see significant growth rather than a four bedroom home in an outer suburb which is surrounded by cheaper properties. Or on the flipside, you may be better to buy a modest home in a suburb surrounded by expensive properties rather than a penthouse apartment which is flagged on all sides by basic 2 bedroom rentals. Real estate has a general rule, buy the worst house in the best street – but of course – if you can’t afford to do renovations – it would be a good idea not to buy the worst house if it needs lots of work!

    When making this decision on your financial future, do your homework. Buying a home should not be rushed. Research the area, research what you can afford to pay – and think of this decision like an investor would. After all, the stability of your finances and ultimately the credibility of your credit file rests with it.

    The government’s Money Smart website provides good advice on Buying a Home:

    How much can you afford?

    A good way to find out how much you can afford to spend on a property is to review your household budget. If you don’t already have one, use our budget planner to:

    • Take what you’ve saved as a deposit, add in first home buyer assistance (if applicable), then work out how much you can afford to borrow

    • Work out how much you can comfortably afford to repay on a home loan each month, and add a bit more to act as a buffer in case of interest rate rises

    • Include all the costs that come with home ownership: up-front costs like stamp duty and legal fees, ongoing costs like land and water rates, house and contents insurance, and repairs

    This article is intended to give ideas only for general information, and should not be taken as financial advice. We recommend you contact a reputable financial adviser about your unique situation to decide what is best for you.

    Image: ponsulak/ www.FreeDigitalPhotos.net

  • What’s happened to Gen Y – our emerging first home buyers

    The future of our housing market, rests with Gen Y. Have we prepared them enough? We look at the particular crisis they face with housing finance, and credit defaults what the ramifications could be for their future and ours.

    couple outside houseBy MyCRA Credit Rating Repair and www.fixmybadcredit.com.au https://www.facebook.com/FixMyBadCredit.com.au.

    The older portion of Gen Y are in their mid to late 20’s. This age is the time when many previous generations have claimed their rite of passage by entering the Australian dream of owning their own property. But that was in the good old days of affordability.

    According to the Courier Mail in January, housing affordability seems to be eluding us. In 1981, the typical home sold for $48,000 just a little over three times the median household income of $15,000. But what do you do when wage rises have not matched property price rises? Today, the median home will set you back $408,000 about six-and-a-half times the median household income of $61,000.

    Property owners may say the market is low, but in reality despite a market slump, prices are still exorbitantly high for our first home buyers. Saving enough for a home can take years, and may require sacrificing the rental accommodation in preference for moving in with Mum and Dad just to scrape funds together. All of this effort may be lost, or not even attempted if you have poor credit history.

    The volume of credit available to young people pre-GFC was huge, and for people developing habits around credit, in hindsight it was extremely irresponsible to be throwing money at 18 -20 year olds and expecting them to know how to be responsible with credit.

    So many Gen Yers don’t have any clue why their history with credit matters, or how to commit to spending reduction and consistent habits of repayment because they have a history of getting what they want when they want it, and worrying about it later. Unfortunately the ‘later’ is now.

    We’re sorry Gen Y. Previous generations before you have failed to pass on the skills necessary to give you the right habits of mind to keep you out of trouble and allow you to accomplish the big goals. Goals like property, education, business or starting a family.

    This has been confirmed in two ways. Credit reporting agency Veda Advantage recently released some of their data from the last three years, which showed that Gen Y holds 60% share of all credit defaults. From telco defaults through to loan defaults – Gen Y tops the list in every category. Which invariably is a deal-breaker when applying for a mainstream home loan for the 5 year term of the listing. (See our release to the media today for more information).

    This may explain our latest first home buyer figures. The Australian Bureau of Statistics revealed two days ago that first home buyer numbers have fallen again, almost a whole percentage point from November 2012 to December 2012. (15.8% Nov 2012 down to 14.9% in December 2012).

    What Veda doesn’t tell us from their data, is how many people have defaults in this country. That we have to speculate on. Veda holds the credit files of approximately 16.5 million Australians. How many of those people have bad credit? Last year Fitch Ratings revealed mortgage delinquencies alone (mortgages over 90 days in arrears) were 1.6 % of all mortgages in the first quarter of 2012. So when we look at the number of defaults across the board, taking into account the more common defaults from telcos, energy providers and credit cards – we could increase that figure, to say 5%? If we assume that figure is correct, then 825,000 Australians have defaults on their credit file. If we apply the 60% rule, then 495,000 Gen Yers have defaults on their credit file. Pure speculation, but one that bears thinking about when we look at why interest rate cuts have yet to make a significant impact amongst first home buyers.

    finance educationWhat can we do to prevent young people from finding themselves in arrears and with credit defaults?

    Paramount to prevention, is education. Education about the wider, philosophical issues of finances so they understand where credit fits in to society and to their own lives, as well as the ins and outs of taking on credit in Australia.

    This should begin in schools, and be upheld in the credit arena, by government and the media.

    Second to that, is education and insistence on credit reporting accuracy. With defaults almost ‘a dime a dozen’ in this age group, could consumers get blaze about the process the Creditor took in listing the default? Could accuracy take a back seat and defaults pile up on Australian credit reports without an understanding of what constitutes a lawful listing? Every Australian needs to know that mistakes can happen on credit reports.

    Likewise, bad credit can be listed on credit files unknowingly. We have a responsibility to check our credit report, as the onus on ensuring accuracy rests with the consumer. This can be done for free – but many Australians don’t know this.

    They probably also don’t know that a credit listing should be tested against the appropriate legislation for its validity and its accuracy. The process of dispute is not easy, but Creditors should be called to account for any inaccuracy. Australians should also know Creditors have a legal obligation to remove a listing which was placed incorrectly.

    Changes for the better are coming in Australian credit reporting particularly around correction of credit reporting mistakes, but education is key for every credit active individual to make best use of these changes, aware of the action they need to take to ensure their rights are upheld.

    As the emerging generation into the housing market, Gen Y is at the forefront of this shift in psyche. Let’s hope they embrace it, and insist on changes that will benefit their generation into the future.

    Find more information on getting help with checking and disputing the accuracy of a credit listing, at www.mycra.com.au.

    Image 2: KROMKRATHOG/ www.FreeDigitalPhotos.net

  • Fixing up Your Finances

    repairing financial damageIn our Make Credit Work For You spot this week, we look at how to dig yourself out of financial strife. ‘Repairing Financial Damage’ was written by Fran Sidoti over at Savingsguide.com.au. We hope it helps if you are experiencing some financial difficulties.

    MyCRA Credit Rating Repair  www.fixmybadcredit.com.au. https://www.facebook.com/FixMyBadCredit.com.au

    Repairing Financial Damage

    No matter how good we are with money, life can tend to get in the way of our best intentions sometimes. Whether you’ve had to dip into savings or accrued some debt on your credit card, it’s very easy to get in a spot of financial bother. If you want to dig yourself out- and pronto- here are some things you can try.  

    Set Financial Goals  

    Probably you already have some. But it’s worthwhile revisiting them, to reconfigure what you want from your finances and how you intend on getting there. Are your financial goals the same as they were 6 months ago? Has your financial situation altered, without you changing your financial set-up? Write out your short, medium and long-term goals, it doesn’t even matter how far-fetched they are. Writing out our goals is the one area in life where we can be as unrestricted as we please.  

    The Road Map  

    Now, how do you intend on achieving those goals? Was your budget a bit too stringent, or perhaps a bit too lax? Is your financial situation sustainable? If you feel as if your set-up isn’t tenable, then what needs to change? Perhaps your expenditure is too high or you need to consider other income sources to get you where you want to be in 5 and ten years time.  

    Financial Fix Up  

    Probably your short-term goals are now a bit different considering you’ve got a couple of things to fix up. If you’re looking to restore depleted savings or pay off a bit extra on your credit card, analyse what you can change in the short-term to clear yourself as quickly as possible. What expenses can you cut down on? It’s amazing to think that organising your food for the week- for example- could be enough to pay an extra $100 into your savings or credit card, and get you well on the way to recovery. If your expenses are already as tight as they can be, look at ways to earn some extra income for the short-term. You could check out freelance work, or write some blogs online. Maybe a couple of weekends helping out your mates would do the trick.  

    Structured Repayment  

    If that isn’t going to fix the issue quickly enough, or if you’re paying high interest, think about consolidating your debt into a loan and having a structured repayment plan, It could give you the consistency you need to organise your budget and will almost certainly allow you to do at a lower interest.  

    Stay Positive  

    The worst thing to do would be to beat yourself up about it. Like all things, having rock solid finances is an ongoing process and no one has it perfect all the time. Things happen, and feeling negatively about the situation is only making your life harder unnecessarily. Negativity will also make it harder to approach the situation and make it all the more tempting to stick your head in the sand. Better to reflect on the positive changes you’ve made to your finances, and how you are now completely equipped to deal with the setback. We get better at salvaging a challenge every time and although we’d all like to never have one, the chances of smooth sailing all the time are slim. So get back on the horse and you’ll be right back on top sooner than you think.

    If your credit file has met with some setbacks during the process, then you will want to reflect on what to do for your future. It really depends on where you want to be over the next five years. Your credit file will show up with any credit defaults for the next 5 years, and any late payments for the next 2 years. If you have a major financial goal you want to achieve over the next 5 years, such as buying a property, or a business venture, then you’ll need a good credit rating to borrow. You may be prevented from accessing mainstream credit (at affordable interest rates) if you have bad credit.   All may not be lost though. Depending on the circumstances surrounding your default you may be eligible for credit repair. To check this out, you can contact us on 1300 667 218.

    For more information on credit repair and how we might be able to help clear your credit file permanently, visit our website www.mycra.com.au.

    Image: David Castillo/ www.FreeDigitalPhotos.net

  • How To Spot the Difference Between Needs and Wants

    wants and needsIn our “Make Credit Work For You” post this week, we have a great article from Savingsguide Australia. Just subscribing to this blog alone will give you some invaluable tips you can use to help you rise to greatness with your finance goals. The article today is “How To Spot the Difference Between Needs and Wants.” If you have decided to live a life of frugality and perhaps have heard of the concept of Affluenza (when too much is never enough), then you will know a bit about the distinction of wants and needs. We may need to eat, but we might only want the big screen TV. Making the decision which is which is an ongoing battle. Thinking wants are needs causes many of us to buy more than we can afford, and we find ourselves struggling to pay back credit. Too many runs of this, and we end up defaulting on our repayments and a Credit Provider somewhere penalises us with bad credit that takes 5 years to shake off. Education and awareness is the key to changing this kind of behaviour – which is natural in all of us. So have a read of this article, and hopefully it helps you spot the difference.

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

    How To Spot the Difference Between Needs and Wants

    By Fran Sidoti

    I’m always the worst when it comes to thinking of how many needs I have. I need an expensive haircut. I need clothes with a more expensive price tag. I need, need, need. Life becomes a much simpler business when I realise that, in fact, these are wants, not needs and they are not essential to my well-being.

     What do I need? Enough food to not feel hungry, a warm place to sleep at night, a couple of goals to chase and people who love me to surround myself. Beyond those things, I probably don’t need much.

    This new Zen me is a little bit inspired by Adam Baker’s guest post on Get Rich Slowly, discussing his wants and needs. Returning from their nomadic lifestyle, Baker and his wife decided to look for a rental with three bedrooms, not the absolutely necessary two bedrooms, so Baker would have a space to work.

    The house they eventually settled on had flaws, but Baker suggests that by concentrating on the fact that three bedrooms was, in itself, a luxury, the flaws of the house tended to lose their importance.

    So, how can we start to fulfill our needs and appreciate our wants for what they are?

     Write it down  

    The best way to understand your own psyche is, sometimes, to write it all down. Construct two tables and write down your needs and your wants. Have a look at the list. Are there things that are under ‘needs’ and are really more things you want? Write down the list again, this time with a bit more self-reflection, and see what that reveals.  

    Ask yourself if you really need this  

    Before you buy anything, repeat the shopaholics’ mantra- do I need this? You’ll end up saving a lot of money that you might otherwise spend on unnecessary purchases. Sometimes it turns out you neither need it or, deep down, want it all that much. So many of my purchases are due to boredom or a mild inclination. Don’t buy things you’ll never really wear or use. Save the purchases for something you’ll really love.  

    Fund your needs  

    Ever spent all your money on entertainment, only to discover you’re short on rent, bills and will be reduced to eating baked beans for a fortnight? Fund your needs first, then fund your savings, and then spend some money on your wants, You might think that constant partying is the thing that makes you happiest but, in the end, the anxiety that accompanies constant money problems is probably not helping you get the best night’s sleep.  

    Know your important wants  

    In all of this, it’s easy to lose sight of how to enjoy life. Don’t cut every single want from your life. Don’t become a martyr to the savings cause. If you cut out all the little wants from your life, you’ll end up with the money to spend on the important wants- like travel, or a renovation. Use your spare cash on special things, and appreciate them for what they are. I don’t need an expensive haircut, but I know how good it makes me feel about myself and how much I love the whole ritual of a good haircut, so I’m willing to wear cheap clothes and have nights with friends at home so I can spoil myself once in a while. An odd want, but there you have it.

    AffluenzaThis concept can be easily applied to credit. Just because you use credit, shouldn’t give you a licence to buy whatever, whenever. Understand just because you don’t pay now doesn’t mean you won’t pay at some point for the credit you use. Save your credit for your important wants, and appreciate them all the more for their rarity.

    Maybe throw that long sought after holiday on the credit card and take the family away. Or take out repayments on an educational course that will change your working life forever. Or perhaps buy a home, but after years of good saving. One that fits all the requirements of what you need, rather than what you want. A home you don’t have to work 24/7 to pay off because it is priced within your means.

    What you shouldn’t do is spend money you don’t have, on things you don’t need, and ultimately find yourself with what you don’t want – debt, unhappiness and a bad credit history.

    Here’s some extra reading on this concept: http://mycra.com.au/blog/2011/07/caught-affluenza-affect-credit-rating-health/

    What does your credit file say about you?

    Think of your credit file as a mirror on your finances. It can reflect your assets, your good history, but it can also reveal your financial shortcomings. It can be a reflection of your inability to stick with something, your disregard for repayments and it shows the financial potholes we fall into that are sometimes impossible to climb out of.

    A bad credit rating can completely change your financial situation. The black marks placed there by creditors show up on your credit file for 5 years. Bad credit can limit your choices and can perpetuate the debt cycle by leading you to choose loans with higher interest rates and more fees, so the struggle to make repayments can be even harder.

    If you want to try and start again with credit, it may be possible to wipe the slate clean, particularly if your bad credit rating should not be there.  Firstly, obtain a free copy of your credit report from one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (TASCOL). If your credit file contains obvious inconsistencies or even if you’re not sure, you may be a good candidate for credit repair.

    A credit repairer can work with creditors on your behalf to completely clear your credit file of all defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. This means we you longer have a bad credit rating, but a completely clear credit file, giving you the financial freedom to use credit whenever we need to.

    The rest is up to you.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

    Image 2: graur razvan ionut/ www.FreeDigitalPhotos.net

  • Money: The Top 4 Relationship Busters

    relationship financeWhat are the ways your relationship may be at risk due to money matters? Last week we featured how your credit rating can be at risk when you enter joint debt. This week, we look at how your relationship in general can be impacted by finances. To follow we feature a great article from SavingsGuide.com.au, titled ‘Relationship Finance: The Top 4 Romance Busters’. Here it is in it’s entirety:

    Relationship Finance: The Top 4 Romance Busters.

    Money is the major reason for divorce, as well as the major source of friction in many relationships. Researchers are increasingly seeing that ‘financial cheating’- as in, lying or hiding financial issues from a partner- is as damaging as the traditional kind. Likewise, finding a financial simpatico with another person is one of the major pillars of a good relationship. So what are the top 4 relationship busters when it comes to money, and how can we avoid them in our own relationship? Inspired by an article from Investopedia.

     Weigh Me Down

    It’s unlikely, in the modern world, that two people can come together without one or both bringing with them some kind of debt. From youthful indiscretions with a credit card, student debt, a mortgage, a car loan- debt is a major factor in most of our financial arrangements. Sadly, when it’s not dealt with openly, it can also be a major sticking point i our relationships. The Fix: The only course is to be straight up. This debt is going to be a drain on your finances for a while yet, and will mean you can contribute less to the joint finances. That’s the reality of the scenario, and honesty is the only way to approach it. Your partner will deal with it, or they won’t.

    Joint Or Separate

     Relationship finance is often regarded as a tell-tale sign for the overall wellbeing of the couple. Serious judgement calls are attached to how couples deal with their finances. Either they split everything, and “they’re not committed”, or they’re completely financially entangled, and “heading for disaster”. Trying to organise your finances according to what the rest of the world says will only strain the relationship. The Fix: Your relationship is unique, as your financial organisation should be. The key is to communicate with your partner about what they feel is appropriate, and be open to change it as the relationship evolves.

     Know The Type

     When you get together, nothing is more important than whether he likes Neil Young or not. We tend to spend so much time on the inconsequential, often the really big issues get left to the side. However, you’ll be able to get a pretty good feel for how a person deals with money. Spender? Saver? Frugal to the point of no fun? These are big issues, and pretending otherwise is just putting your head in the sand. The Fix: Be open with how you see money, and where you would like your finances to be in 5 and 10 years. Talk about how their parents dealt with money, research shows it’s a big indicator.

     Little Tykes

     Every self-help book in the world has told us what issues to avoid talking about when we start a relationship. Heaven forbid you scare him off, talking of kids or money. Well, the final major relationship buster is a combination of the two- the finances of having kids. The Fix: Generally, you ascertain whether you want to have kids first, but with the costs of raising a kid now hitting the $1 million mark, you also have to discuss how to structure your finances to adapt, especially with one partner out of the workforce for a while.

    As we discover in this post, and also last week in the post ‘How to Avoid Sexually Transmitted Debt’ the most important aspect to the meeting of financial minds is to keep an open dialogue about money. Talking freely and honestly, preferably keeping the emotion out of your discussions will save your relationship. It would also help you to avoid surprise bad credit from your partner.

    If you have Sexually Transmitted Debt  – that is defaults, writs or Judgments that you didn’t initiate, and you believe are impacting your credit file unnecessarily, talk to one of our Credit Repair Advisors about where you might stand with getting your bad credit repaired. Ph 1300 667 218.

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

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Great shot, wrong target: Gillard Government’s draft legislation to regulate small business credit completely misses the point

    regulate small business creditMedia Release

    Great shot, wrong target: Gillard Government’s draft legislation to regulate small business credit completely misses the point.

    21 December 2013

    The Federal Government has published draft legislation which proposes regulating small business credit, but an advocate for accurate credit reporting has criticised moves to regulate access to credit for small businesses, saying what is needed is not less credit, but simply a better credit reporting structure.

    Small business publication, SmartCompany, reported…that draft legislation put out by Financial Services Minister Bill Shorten’s office proposes prohibiting people from “engaging in credit activities” in relation to a small business credit contract or a small business consumer lease unless they hold an Australian credit licence.

    “Responsible lending obligations do not apply to small business credit contracts or to investment credit contracts generally, but only to specific classes of these contracts,” a spokesperson for Mr Shorten told SmartCompany.[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]

    “The substantive obligations in the National Credit Code do not apply to small business credit contracts and to small business consumer leases. Other than the unjust contract provisions, these provisions also do not apply to investment credit contracts.”

    The spokesperson declined to comment on whether the proposed legislation will make it tougher for small businesses to obtain credit.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says the proposed changes would be widely criticised by small business advocates as stifling the flow of business credit in Australia and that the changes are unnecessary form of “hand holding” for Australian business owners.

    “Australian small businesses are already doing it tough getting credit out there post GFC – this is going to mean they will struggle even further to expand and there will be less start-ups,” Mr Doessel says.

    But he does say any changes to credit reporting for small businesses would be welcomed.

    “There is a gaping hole in the basic rights afforded to commercial credit file holders before recovery is commenced, and this needs to be dealt with,” he says.

    In the consumer landscape, if an account is overdue, then the account holder is afforded a 30 day right to remedy under the Credit Reporting Code of Conduct. This is meant to ensure that fair and reasonable means have been taken to attempt to recover the outstanding amount before further action is taken, and before the consumer’s credit file is defaulted.

    As commercial credit is not covered under the Code, this right is currently not provided to commercial credit file holders – and Mr Doessel says many times small business owners have been caught out.

    “The common courtesies which consumers are afforded and which many assume stay with them in the commercial sphere just don’t apply – many don’t realise just how big a risk commercial credit is.”

    “It’s like the ‘wild, wild west’ out there with some lenders defaulting small businesses with little to no warning,” he says.

    Once a default is placed on a commercial credit file, then the length of time it remains on the credit file is legislated by the Privacy Act 1988.

    “A commercial credit file holder is still subject to 5 years of bad credit if they end up with a default listing, the ramifications are still the same – they are generally refused mainstream credit, refused mobile phone plans, car finance and credit cards – but the rules for how the default gets there in the first place are just not there,” Mr Doessel says.

    “In theory, you can be one or two days late in paying a commercial account and you can have your ability to obtain credit ruined. There is no right of redress, as there is no legislation governing notification requirements in the commercial credit sphere.”

    Mr Doessel says the Government has completely missed the mark on what small businesses need to thrive and survive.

    “Most don’t need restrictions on available credit, they just need the basic credit reporting rights that they deserve,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph: 3124 7133

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

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

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

    ——————————————————————————–

    [i] http://www.smartcompany.com.au/politics/053547-government-sneaks-in-draft-legislation-to-regulate-small-businesses-access-to-credit.html?utm_source=SmartCompany&utm_campaign=82bc6a73e2-Friday_21_December_201221_12_2012&utm_medium=email

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

  • Have Your Say on Bill Shock

    Ever been overseas and returned home to find your mobile phone bill is as expensive as your plane ticket? You’re not alone. You may get a chance to have your say on what the telcos should do to stop bill shock and curb the excessively high data roaming charges which can see you in debt and threaten your credit rating in a new public consultation seeking to lift the telco industry.

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

    The Government is welcoming public consultation on new standards to help Australians avoid bill shock while using their mobile phone overseas.

    As part of new guidelines for Telcos, set out through the new Telecommunications Consumer Protection (TCP) Code, the Australian Communications and Media Authority (ACMA) will begin consultation on developing an industry standard to help Australians best receive timely information about international roaming costs when they travel.

    Minister for Broadband, Communications, and the Digital Economy, Senator Stephen Conroy, said in a media release late last week that Australian consumers are being price gouged by telecommunications companies every time they want to make a mobile call, send a text or go online, when overseas.

    “The industry standard will be an important transparency measure. People will receive clear information about pricing, allowing them to better manage their spending and avoid bill shock.

    “We also expect that the extra scrutiny provided by the standard will encourage telecommunications companies to reduce their obscenely high prices and give consumers a better deal when they travel.”

    “I encourage everyone to have their say during this public consultation, which ends on 25 January,” Mr Conroy said.

    Here’s what the current draft standard proposes:

    A traveller receives two SMS messages when they switch on their phone when arriving overseas. The first would be sent within 10 minutes, warning the customer that extra charges will apply and allowing them to switch off international mobile roaming services.

    The second would arrive within 1 hour and must detail the cost for a standard call, an SMS, and 1Mb of data.

    The standard also requires mobile phone companies to develop cost effective monitoring tools for consumers to use when they travel overseas.

    The new standard is expected to be in operation by the middle of next year.

    In the past, we have found many times the telco customer has had difficulty disputing their phone charges before they are issued with a credit default. These credit listings can be hard to fight. Often the customer will say what they had first understood the plan to be for, or what they wanted the phone to do, was not what eventuated. This can come down to a he-said she-said situation, and the telcos – with all the power on their side can often come out on top.

    As credit repairers we see many telco customers for various reasons – in fact almost 26% of our credit repair clients have telco credit listings they need removed. Many complain of confusion over bills, date allowance and plans and also difficulties with resolving disputes – which see customers with bad credit even though they had been attempting to sort out the bill discrepancy.

    The multitude of official complaints in the area of ‘bill shock’ resulted in a major inquiry by the ACMA and the report – Reconnecting the Customer. This examined the root causes of the industry’s poor customer service and complaints-handling performance. The telco industry was asked to regulate or be regulated – and so the TCP Code was developed by the Communications Alliance (CA), and a final draft was registered in late July.

    That TCP Code came into effect on 1 September 2012. If the code proves to be effective, there will be significant positive changes for telco customers. This public consultation and is one such proposed change coming to fruition.

    So get in and have your say,

    ACMA public consultation: http://www.acma.gov.au/WEB/STANDARD/pc=PC_600133

  • The 7 deadly mistakes with credit that could harm your home loan application

    Media Release

    The 7 deadly mistakes with credit that could harm your home loan application

    Australians are making mistakes every day with credit, and some may be costly enough to mean they are blacklisted from getting a home loan or other credit for the next five years, a consumer advocate for accurate credit reporting warns.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says there is not nearly enough education around credit in Australia, and many people only get educated about their credit rating when they apply for a home loan.

    “Often it’s not until people apply for a home loan that they even know what a credit rating is, let alone understand that the responsibility for checking the accuracy of their credit rating rests with them,” Mr Doessel says.

    He provides seven deadly credit mistakes that many Australians unknowingly make:

    1. Making repayments late

    Previously it would take 60 days before a repayment fell into arrears and would be listed on your credit file. But under new credit reporting law – from December 2012 any payment to a licenced Creditor which is made late can be recorded on your credit file for two years and could impact your ability to get a home loan. [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]

    “Making repayments on time, every time will significantly reduce your chances of being refused a home loan down the track,” he says.

    2. Repaying only the minimum amount

    Snowballing interest charges can see people come unstuck until they reach the point where they are unable to pay and begin to get into arrears.

    With credit cards, and other finance agreements, pay much more than the minimum amount to avoid high interest charges.

    If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate.

    3. Buying too much credit

    Ignore what the card company or bank sets for your limit – what can you comfortably afford to repay?

    Also, if you intend to apply for finance in the future, a lower credit limit looks better to a prospective lender – so if you don’t need it – consider reducing it.

    You should also leave some room in your finances over and above your credit debts.

    “Many people fall into default when they are ill or there are other emergency situations, because they have no room in their finances to pay for incidentals – and life does happen,” Mr Doessel says.

    4. Choosing the wrong kind of credit

    Make sure your credit suits you. Make it work for you, not the other way around. What kind of payer are you? What do you need the credit for? There’s no point getting a line of credit if you are the big-spender type – you are certain to get into trouble.

    When you choose a credit card – consider what you need it for. If you are going to use it a lot – perhaps the rewards points could be a deciding factor. But if you are only going to use it sporadically – maybe the annual fees should be more important.

    The same goes for any big ticket item you purchase using credit – like houses and cars. What does it need to do for you? What can you actually afford? How long will you need it for? Can you live comfortably with this debt?

    If you need to go down to one income at some point – will you be comfortable then?

    5. 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,” Mr Doessel says.

    6. Not checking credit statements

    You should check all bills and statements when they come in, and query anything you’re not sure about. Maybe you were charged twice for an item, or charged too much. It is a good way to be alerted early to identity theft as well. You should also check your bank account statements in the same way. Any discrepancy should be disputed immediately.

    7. Not checking your credit report

    Most people don’t know that every year they are able to request a copy of their credit report for free from Australia’s credit reporting agencies.

    If you find a credit infringement on your credit report and you don’t believe it should be there, or if you didn’t know about it, then it’s important to insist the discrepancy is rectified, as it will mean you are locked out of mainstream credit for between 5 and 7 years – depending on the listing type.

    Often people are told by Creditors and the agencies that the bad credit is there to stay for the term – it can’t be removed. But this may not be true.

    For professional advice on how to tackle Creditors and the credit reporting agencies about a listing which should not be there, you can contact a reputable credit repairer.

    “A credit repairer will conduct an audit-like investigation into the circumstances surrounding the listing, and assess the Creditor’s compliance with credit reporting and industry law, and negotiate for the removal of bad credit which is proven to be listed unlawfully by the Creditor,” Mr Doessel says.

    /ENDS.

    Please contact: Graham Doessel – PH 3124 7133

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

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

    MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.
    ——————————————————————————–

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

    Ambro/ www.FreeDigitalPhotos.net

     [/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • 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

     

     

  • Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    Media Release

    Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    29 November 2012

    [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”][UPDATE: Listen to the with Privacy Commissioner, Mr Timothy Pilgrim and Graham Doessel on News Talk 4Bc ]

    The credit history of Australian consumers is about to go under the microscope following the passing in Parliament today of amendments to Australia’s Privacy laws, and a consumer advocate for accurate credit reporting says many consumers will not be prepared for the changes around credit reporting which are about to take place.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says most Australians won’t know that from December 2012, they need to make bill payments to licenced Creditors on time, every time to avoid having a late payment recorded against their name. He is calling for greater consumer education to avoid unfair and surprise bad credit.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. People who pay bills late often, by accident or otherwise need to be told that this habit could have a detrimental effect on their ability to obtain credit in the future.”

    Mr Doessel goes on to say “I believe the Government should do its best to ensure that every credit active individual knows about these important changes to credit reporting law prior to the reporting of repayment history on Australian credit files.”

    Amendments to Australia’s Privacy Act in the form of the Privacy Amendment (Enhancing Privacy Protection) Bill 2012 – which includes major changes to Australia’s credit reporting laws were passed in Parliament today and come into effect from March 2014.

    Privacy Commissioner Timothy Pilgrim has also warned consumers that they need to prepare for the changes around credit reporting.

    “If a person misses making a payment from as early as December 2012, it will be able to be recorded on their credit record and may affect their ability to access credit in the future. People will not only need to be vigilant about paying their bills on time, they should also make sure that the information held by these organisations is correct. In most cases they can do this for free’,” Mr Pilgrim said in a statement to the media.[i]

    Mr Doessel reiterates the importance for every consumer to ensure their credit report reads accurately in the coming months.

    “There will be so much more information open to lenders now, and consumers should routinely check their credit file, to ensure there are no inconsistencies, and to generally be aware of what is being said about them on their credit report that could see them refused credit in the future,” he says.

    Every credit file holder is able to obtain a copy of their credit report for free every year from one or more of Australia’s credit reporting agencies – Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services (if in Tasmania).

    A report will be mailed to them within 10 working days. Or for a fee to the credit reporting agencies, they can request an urgent copy.

    “It is the consumer’s responsibility to maintain the accuracy of their own credit file, and it will be more important than ever now. People should be encouraged to request a free credit report every year – regardless of whether or not they intend to apply for credit in the near future,” Mr Doessel says.

    If consumers find inaccurate information or inconsistent data on their credit report they do have the right to have that information rectified.

    Mr Doessel says whilst new laws covering credit corrections within the Privacy Amendments (Enhancing Privacy Protection) Bill 2012 are intended to make the process of disputing unfair or inconsistent entries easier, lack of knowledge of credit reporting legislation could still disadvantage the consumer.

    “As it currently stands, disputing an unfair credit listing is a bit like a battle between David and Goliath, with the consumer rarely holding enough knowledge of what constitutes an unlawful credit listing to be able to remove it from their credit file on their own. It will be interesting to see if this will change after the March 2014 deadline,” he says.

    /ENDS.

    Graham Doessel – Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld. 4053
    MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

     

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    [i] http://www.oaic.gov.au/news/media_releases/media_release_121129_privacy_changes.html[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting

    Media Release

    Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting alone

    Brokers who don’t have contact with a reputable credit rating repairer to refer bad credit clients to, may be missing out on valuable commission through lost deals, and in some cases may also be doing their clients a disservice, says a leading credit rating repairer and advocate for credit reporting accuracy.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says whilst many people whose credit history shows up with defaults have obtained that default justly, there are also many whose credit file contains errors and omissions and he says those people should be given the chance to clear their name.

    “I would like to say it is as easy as calling the Creditor to sort out the mix-up, but in reality clearing bad credit is a minefield, and a credit rating repairer can be invaluable,” Mr Doessel says.

    Generally when a client presents to a broker with bad credit they have two options:

    (1) Send them packing to resolve the mix-up or to wait until the credit listing “falls off” their credit file in 5 or 7 years before they apply again.

    (2) Organise a non-conforming loan at a higher interest rate to absorb the risk associated with lending to those with bad credit.

    When faced with a credit rating error, Mr Doessel says the clients who are sent away may not always be able to resolve their credit reporting dispute themselves.

    “Credit reporting is governed by mountains of legislation across different industries, so it is not always about right or wrong, but how the letter of the law applies in each case. We have seen many clients who are defaulted despite doing the right thing and despite working actively to try and resolve the situation themselves,” he says.

    He says many brokers put credit repair in the “too hard” basket and prefer to steer their clients to the non-conforming market – at least for the first few years of the loan when they can then refinance.

    “There are a couple of reasons why a non-conforming loan will not always be the best choice for the client. Firstly, they can lose thousands on interest even over the first three years, and secondly with the market the way it’s been more home owners are stuck, finding they can’t refinance due to lack of equity in the home,” he explains.

    Mr Doessel wants to help educate brokers and consumers alike on some of the myths surrounding credit files:

    1. Consumers always know they have bad credit before they apply for a loan.
    There can be many reasons for people not to know they have bad credit until they apply for a loan. They may have moved, been hospitalised, been an identity theft victim or even been a victim of error with their creditor. If the client was not notified prior to the default, in many instances the listing has been placed on the credit file unlawfully, and should be disputed.

    2. Credit file listings are always correctly placed on credit files.
    Credit reporting mistakes can and do happen –but most consumers are unable to recognise credit file errors. Some estimates point to as many as 34% of credit files containing errors or omissions. [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]

    Credit reporting agency Veda Advantage recently admitted about 1% of material errors detected by their system alone.[ii] But many more may go undetected by credit reporting agencies, creditors and consumers until it’s too late and the consumer is refused a home loan.

    3. Credit file complaints are easily disputed.
    Some brokers assume if the listing is there – the client must be deserving of it. But in reality, once a listing has been placed on a credit file, it is very difficult for individuals to have removed. So even if the listing shouldn’t be there, most often people are forced to put up with it. Often they are told the listing can be marked as paid, but will not be removed from the credit file.

    4. If a Default or Clear-out is on the credit file it can never be removed prior to the end date.
    Some brokers assume credit repair must be a ‘con’, as in their experience listings are never removed. In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. It is up to the client (or the credit repairer acting on their behalf) to show reason as to why the listing was placed unlawfully, and negotiate its removal.

    The process of credit repair involves an audit-like investigation of the entire case to determine, based on legislation whether the credit listing was placed unlawfully on the credit file. If this is determined, the credit repairer will formally negotiate the removal of the listing from the credit file on the client’s behalf.

    5. A bad credit client should be steered to the non-conforming market.
    If a broker considers duty of care to their client, and they believe the client should be able to obtain mainstream credit, except for bad credit history – then another step must be inserted in the process – deciding on the possible validity of the bad credit before providing non-conforming finance options to them.

    “As a successful broker in the non-conforming market for many years, with many cases I was left scratching my head as to why these perfectly suitable clients who had nothing wrong bar their credit rating errors did not have other options than to enter a loan at sky-high interest rates just to break in to the property market. That is precisely why I founded a credit repair business in the first place,” Mr Doessel says.

    6. Credit repair is a waste of money.
    If a potential borrower is able to have their unfair credit listing removed, they can reduce their interest charges by thousands just by entering a loan with a mainstream lender.

    On a loan amount of $350,000, a borrower would pay $487.62 more in interest each month over the first three years in a non-conforming loan at 9% interest vs the standard variable rate of say 7%.

    When we look at that in total, the borrower would be up for a staggering $17,554.34 more just in interest alone over those first three years.

    7. All credit repairers are the same
    Consumers do need to be aware there are some agencies out there who are happy to take money, but don’t add enough benefit to be of value over what an individual could do themselves. People looking for a reputable credit repairer should ask plenty of questions, do their homework on the company, and request some testimonials from past clients before they commit.

    /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

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

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    [i] http://www.smh.com.au/articles/2004/02/09/1076175103983.html

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

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

  • 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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    [i] http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main%20Features1Sep%202012?opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202012&num=&view=

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  • When love goes bad…Graham the ‘Credit Corrector’ shows how to prevent relationship debt.

    Media Release

    When love goes bad…Graham the ‘Credit Corrector‘ shows how to prevent relationship debt.

    Being ‘in love’ is one of the best feelings in the world, but not one of the most practical states to be in. Sometimes personal financial values go out the window and people lose themselves in the process of adding to the ‘relationship’ and creation of ‘us’.

    But a leading consumer credit advocate, Graham Doessel warns it is important to think practically about joint finances for people to maintain their good name and their clear credit file when they take their relationship to the next level of commitment.

    The former award winning broker and now CEO of MyCRA Credit Rating Repairs says when two different money ‘personalities’ combine, the potential for both to be financially damaged is greatly increased.

    “Every day we meet people who need help with fixing credit rating issues due to no fault of their own really, but they have fallen under the financial shortcomings of a partner,” Mr Doessel explains.

    When people take out any credit together, such as loans, utility accounts, homes and rental properties, they become very reliant on the partner to keep up their end of the credit repayments.

    Sometimes one partner ends up with a bad credit score, simply because the other person on the account has not kept up with repayments. People can be unaware their partner is generating defaults on their credit rating until it is too late.

    “In many instances it’s not until people apply for credit in their own right that they find out about the credit problems their partner has initiated. The relationship may even have ended years ago and the partner is still paying for it,” Mr Doessel says.

    Bad credit history can last for 5-7 years, depending on the listing. The most common type of negative listing is a default, and is placed by the creditor when an account holder fails to make payments past 60 days.

    “Time and again we see people who have ended relationships but still have joint commitments together. These people find themselves in financial strife, unable to get home loans, credit cards or phones because they didn’t continue to take responsibility for the joint credit until such time are their names were removed from the account,” he says.

    Mr Doessel says many people come unstuck by not asking the tough financial questions about their prospective partners early in the relationship.

    How to Prevent Relationship Debt

    1. Ask about your new partner’s financial past. People will do what they have always done. If they have financial skeletons in the closet it is possible they will continue this behaviour in the future.

    2. Ask what debts they currently have. This will give you an indication of how they feel about money, and how much debt they consider normal to handle. Does this match with yours?

    3. Talk about paying bills. Do they always pay them on time? If not, why not? This will give you a good indication of how this person regards money and credit repayments. Ring any alarm bells yet?

    4. Ask what their financial goals are for the future. Do they match yours? If your new partner wants to blow all of their money on an overseas trip, but you want to save for a home – how will this work long term?

    5. Verify their answers about existing and past debt. Ask them if you can see a copy of their credit file (and versa of course). A copy of your credit report is free every year from one or more of the credit reporting agencies in Australia. It will be sent within 10 working days.

    Mr Doessel suggests if people are unsure of their new partner’s financial compatibility, it could mean finances need to be fairly separate for a significant period of time.

    “Your financial generosity now could become the very thing that is used against you if the relationship sours. Before you enter into any financial transaction, consider carefully how secure you would be if things did take a turn for the worse,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

    Lisa Brewster – Media Relations Ph 3124 7133 media@mycra.com.au

    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.

    Image: Idea go/ www.FreeDigitalPhotos.net

  • 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.

    Image: Idea go/ www.FreeDigitalPhotos.net