MyCRA Specialist Credit Repair Lawyers

Tag: credit active

  • Veda credit scores: mystery still surrounds calculation

    Press Release

    credit scoreVeda credit scores: mystery still surrounds calculation.

    2 October 2013

    The decision by Veda Advantage to offer credit scores to Australian consumers previously reserved for lenders has been welcomed by a consumer advocate for accurate credit reporting – as long as Veda  clearly outlines how the score is calculated.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says in general consumers have been kept in the dark about how to best actively manage their credit worthiness.

    “I believe every credit active individual has the right to know what their credit score is, but with that, they also need to know how that score is arrived at to positively manage their own credit decisions,” Mr Doessel says.

    He says people believe if they pay all of their bills on time, their credit score will be high, but this is not always the case.

    “There are a range of factors that go into the score calculation – and it has all been a bit of a mystery to consumers really which is not ideal,” he says.

    Mr Doessel says largely consumers don’t even know they have a credit score.

    “Most times it’s only when their credit score is lower than it should be to obtain finance with a lender that consumers even know they have been rated with a number attached to their approvability,” he says.

    Veda Advantage’s Marketing Manager Belinda Diprose told Banking Day yesterday there was a low level of consumer awareness about credit reporting, with as much as eighty per cent of people having never checked their credit report.[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 currently the big issue with allocating a credit score under the current credit reporting system, is that the number is only calculated on negative data.

    “It’s not balanced. An individual can have a few too many credit enquiries in a certain period, and perhaps apply for the ‘wrong’ type of credit, which will reduce their rating, and there is no consideration for paying bills on time to offset that information,” he says.

    New Privacy laws to take effect March 2014 will provide extra information for lenders and Mr Doessel says this will deliver a bigger picture of credit suitability and more information from which credit reporting agencies can draw on to calculate a fairer credit score.

    “Until then, any number of things could be shaving points off your score – consumers don’t really know for sure the full gamut of what may reduce it, and this needs to be made public knowledge now that the score is available and moving forward towards comprehensive credit reporting in March.”

    Go to http://bit.ly/My-Free-Credit-File for more information on obtaining your credit score.

    /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.

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  • Safer Internet Day February 7 2012: be cyber-smart for a future clear credit file

    How to be cybersmart – that’s an important topic. On February 7, Australians have the opportunity to raise awareness as to how children and parents alike can be smart on the internet. This is essential for many reasons, one of which is to preserve our personal information, our financial identities and our clear credit file. Cyber-smart are hosting ‘Safer Internet Day’ with this year’s theme, ‘connecting generations and educating each other’, focusing on promoting a dialogue on online safety amongst all generations.

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

    Cybersmart’s key messages for schools, libraries and families this Safer Internet Day are:
    •Talk about online safety—with all members of your family and school community
    •Protect Your Privacy—check your privacy settings and update your software
    •Educate yourself about the online world—check out the Cybersmart resources.

    How can a young person’s clear credit file be put at risk from their internet use?

    Our young people need to be cyber-smart and also, young people need to be credit-savvy to get along in this modern world.

    One issue we wish to highlight to help young people stay smart online is for them to be aware of the ways in which they can be putting their clear credit file at risk every time they post information publicly on the internet, even before they are credit-active.

    It’s unfortunate that teenagers in Australia today are not immune to identity fraud. Even though they are not yet 18, the personal information that is made public today could be used against them in the future.

    Many teenagers do not know the risks of having a public ‘profile’ on sites like Facebook and Twitter, but fraudsters do. With the volume of personal information that is publicly available about our young people on social network sites, what’s to say fraudsters can’t pull that information and use it to build a profile that could allow them to create a fake identity?

    A young person who becomes the vicitm of identity theft could have their clear credit file ruined for five years. They may not even get a chance to get a mobile phone or take out a credit card themselves.

    Late last year, the Australian Federal Police’s national co-ordinator of identity security strike team, Ben McQuillan spoke about the dangers of identity crime at a forum on money laundering and terrorism.

    He warned forum listeners about the new trend of ‘data warehousing’ which involves storing data for a time, making it harder for a victim or bank to trace where and when the data was stolen.

    ”If people know your full name, your date of birth, where you went to school and other lifestyle issues, and they were to warehouse that data, there is a prospect that could then be used to take out loans or credit cards or to create a bank account that could then be used to launder money,” Mr McQuillan told the Sydney Morning Herald.

    Identity theft  is not only about the initial loss of monies, but if the fraud amounts to credit accounts in the young victim’s name going undetected and unpaid past 60 days, creditors will issue defaults. It need not be major fraud to have a detrimental effect to the young person’s clear credit file. Credit file defaults for as little as $100 can stop someone from being able to obtain credit. So any misuse of someone’s credit file can be extremely significant.

    Repairing bad credit, even following identity theft is not easy. The onus is on the victim to prove to creditors they didn’t initiate the credit. The fact that the perpetrator is long gone and the actual act of identity theft happened years earlier will only add to the difficulty for the young person in recovering their clear credit file.

    Experts recommend parents and young people continue to update their skills on how to be cyber-smart.

    The government’s ‘stay smart online’ website offers some top tips about using the internet which can be discussed with young people at home and school:

    Top tips

    Make sure your computer is secure—follow the advice in the Secure your computer section of this [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”][stay smart online] website.

    Set strong passwords, particularly for important online accounts and change them regularly—consider making a diary entry to remind yourself.

    Stop and think before you share any personal or financial information—about you, your friends or family. Don’t disclose identity information (drivers licence, Medicare No, birth date, address) through email or online unless you have initiated the contact and you know the other person involved.

    Don’t give your email address out without needing to. Think about why you are providing it, what the benefit is for you and whether it will mean you are sent emails you don’t want.

    Be very suspicious of emails from people you don’t know, particularly if they promise you money, good health or a solution to all your problems. The same applies for websites. Remember, anything that looks too good to be true usually is.

    Limit the amount and type of identity information you post on social networking sites. Don’t put sensitive, private or confidential information on your public profile.

    When shopping online use a secure payment method such as PayPal, BPay, or your credit card. Avoid money transfers and direct debit, as these can be open to abuse. Never send your bank or credit card details via email.

    When using a public computer, don’t submit or access any sensitive information online. Public computers may have a keystroke logger installed which can capture your password, credit card number and bank details.

    We encourage anyone who is interested in protecting their identity and their clear credit file whilst online to visit the stay smart online website regularly, and if people have children, the Cybersmart website is essential reading for both the young person and parent.

    Get involved in the Safer Internet Day, and help educate someone you know about online safety.

    If you require further information about maintaining a clear credit file or repairing bad credit, visit our main site www.mycra.com.au or call us tollfree on 1300 667 218.

    Image: imagerymajestic/ FreeDigitalphotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • 5 things every young person needs to know about credit

    It’s back to school for most teenagers in Australia. Here is a lesson you might not learn there…Just because you currently aren’t credit active, does not mean you can’t learn about how to make credit work best for you when you are. We show you how the actions you take NOW could lead to being unable to get a phone, a home, a car in the future because of a surprise bad credit rating.

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

    We believe this important financial information should be taught in high schools across the country. So if you know a student or young adult, flick them this link or print this page. We want all young Australians to have the luxury of a clear credit rating when they turn 18 and beyond.

    1. What is a credit rating?

    Once you turn 18, and become ‘credit active’, a credit file is initiated in your name. This contains all financial information on you, including any credit you have taken out, the amount of credit, and any negative listings – like court Judgments, writs, bankruptcies, clear outs, and defaults. A default occurs when an account has not been paid more than 60 days, and the creditor (bank, telephone company, electricity company etc) places a record of this ‘default’ on your credit file to alert future creditors. A clear out is when the creditors are unable to get hold of you over late payments, agents have been sent to your house and they record this as a ‘clear out’. By accessing your credit file, a potential creditor can assess your credit rating, based on any negative listings which are present there.

    2. What happens to me if my credit file has negative listings on it?

    Generally, a negative listing on your credit file tells banks or other people you might want to borrow money or services from, that you have had problems repaying credit in the past. They will most often decide that you are a bad ‘risk’ to lend money to, and will refuse you the car, money, credit card, electricity account or mobile phone plan.

    A negative listing stays on your credit file for 5-7 years, depending on the listing and ‘drops off’ after this time. A negative listing will affect you for the entire time it is present on your credit file. You need to ask yourself: what do I want to be doing in 5 years????

    3. How do I end up with a negative listing on my credit file?

    It is estimated there are approximately 3.47 million Australians with negative entries on their credit file. (Veda Advantage 2008).
    The most common negative listing is a default. This is put there when you don’t pay your bills on time.
    But there are other reasons why you could have a negative listing, which are not always completely your fault.

    Change of address. Sometimes people move and their mail continues to be sent to the old address. This is a really common scenario, particularly for young people who tend to move around a lot, or go overseas. The problem is – you don’t know your bills are late and don’t know you are being defaulted. It is important to update contact information regularly with anyone you have taken credit out with. No news is not good news!!!

    Identity theft. Sometimes people’s personal information can be used for purposes of fraud – for crooks to construct a fake identity, and use it to take out credit. The thing is, they are using your name so you are the one that ends up with the bad credit rating, and it can be a nightmare to recover the good credit rating you once had.

    It is important to keep all your personal information as secure as possible. One important change you can make right now, is to change the way you use the internet.

    Keep your passwords and social networking settings as strong as possible.

    The information you post today, could come back to haunt you in a big way.

    There are reports from Australian Federal Police of the likelihood of crooks scrolling through thousands of social networking pages looking for personal information from young people – who usually have the most lax privacy settings. That information is not used right away, but the data is ‘warehoused’ until the young people turn 18. They can then use that information to construct a fake identity (identity theft) and go on a ‘spending spree’ with the young person’s clean credit file. You could be ruined by identity theft before you even take out your first piece of credit yourself.

    Share accommodation. Any accounts which have your name on them, regardless of who intends to pay them are your responsibility – this includes rent. Sometimes people get caught out sharing houses, and someone leaves bills unpaid which then have dire consequences for your future.

    Mistakes. Sometimes mistakes happen. The wrong person gets the bad credit rating. The wrong details get put in the computer. Creditors are human. Don’t let a mistake affect your credit file.

    Too many credit enquiries. Only apply for credit you feel you have a very good chance of being approved for, and only apply for credit you have full intention of pursuing. Sometimes too many credit queries are enough to get you declined for credit.

    4. How do I know what is said about me on my credit file?

    Many people don’t know this, but it is so important for everyone to keep track of the accuracy of your own credit file. To avoid the disappointment and embarrassment of finding out about your bad credit rating only after being declined credit, we recommend you check your credit file every 12 months to ensure there are no black marks against your name, just as you would check your bank statements or your super account.

    You can request a copy of your credit file for free from the major credit reporting agencies – Veda Advantage, Dun & Bradstreet, or Tasmanian Collection Services (if you are Tasmanian). Your credit report will be provided within 10 working days – or for a fee it can be provided urgently.

    5. What do I do if something is not right – there are errors on my credit report?

    Don’t put up with any errors or inconsistencies on your credit report – a clear credit rating is your ticket to financial freedom.

    Most times a credit reporting agency will tell you that defaults are never removed, but can be marked as paid. You are then stuck with a dodgy credit rating for 5 years. But you shouldn’t have to put up with it, as it is possible to have many defaults removed.

    If there are errors, inconsistencies, or the listing should not be there, you do have the right to have it removed. The best course of action is to ask for help from a credit rating repairer. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with. If they are successful, you not only get help with removing credit file errors, but many times you are able to start off with a completely clean credit rating. You have a clean slate and can go for any credit you need.

    For more information contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website.

    Image: imagerymajestic / Freedigitalphotos.net

    Image: David Castillo Dominici / Freedigitalphotos.net

  • Australia Day – New Australians left in the dark over credit system

    Media Release

    New Australians left in the dark over credit system

    24 January 2012
    Australia Day is the time when thousands of new Australians are welcomed into the country’s dynamic multi-cultural society, but a national credit repairer says the road to financial success in Australia can be a harsh one for new migrants.
    He says new Australians don’t get enough help to make the most of their finances, and to ensure they are never blacklisted once they become credit-active.
    MyCRA’s CEO, Graham Doessel says he deals first-hand with many new migrants who have struggled to come to terms with a credit system which is far different to the one they are used to, and ultimately their Australian credit rating can suffer.
    “I am seeing more new Australians caught out with the system here, being banned from new credit – can’t get a home or car loan and often from fairly small amounts in arrears on their credit accounts,” Mr Doessel says.
    Australia’s credit reporting system is fairly unique in the fact that it is currently a negative reporting system. There is no way of balancing out a bad credit report with good repayments, and any negative listing remains on a person’s credit file for 5-7 years.
    Once an individual is 18 and is credit-active, they have a credit file issued in their name. It is even at this early stage where some new migrants come unstuck. Sometimes in those early stages the credit file can be issued under the wrong name.
    “Creditors have been known to mix up names or put someone’s last name as their first name. This could potentially open up a can of worms in terms of correct listing,” he says.
    Creditors can also place a default on the wrong person’s file.
    “We have a case at the moment where a lady had a default listing placed on her file which was for a male with a similar name. It wasn’t until our client applied for a loan that she found out about the default placed on her file from someone else’s account,” he says.
    It is suggested that new Australians make a point of ensuring continuity with their name on any credit they take out and requesting changes to any bills or documentation which come back incorrect.
    They should also check their credit file to make sure everything reads correctly.
    “It’s actually not just new Aussies who are kept in the dark. Many Australian-born Aussies are unaware they should be checking their credit file regularly and that they can obtain a credit report for free every 12 months,” Mr Doessel says.
    Many people are unaware that once an account goes past 60 days in arrears, it will be listed as a default on the person’s credit file for 5 years.
    A common reason people can have defaults go unnoticed is after they move house or when they go overseas for extended holidays. They fail to divert their mail, and do not receive the written notification of either the late account, or the creditor’s intention to list the late payment as a default on the person’s credit file.
    “Identity theft is a major problem in this country, and many new migrants are not aware of the frequency of attacks, or the need to safeguard their personal information. They end up with their identities stolen, and credit taken out in their name,” Mr Doessel says.
    Sometimes migrants can become victims of identity theft before they even get on the plane. In December, 2010 Immigration Minister, Chris Bowen warned new migrants of online scams that often leave them without a visa and at a loss for the money they have spent. (2)
    “It is vital that people are aware of fraudsters’ tricks before handing over money for immigration assistance which is never provided,” Mr Bowen said.
    Mr Doessel is offering new migrants free information on using credit in Australia, and how they can best keep their credit file clean. Contact info@mycra.com.au or call tollfree 1300 667 218 for more information.
    “We should use Australia Day to help our fellow Aussies, and raise awareness of the problems our new migrants face, so we can all experience financial success,” he says.
    /ENDS.
    Please contact:

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

    www.mycra.com.au     www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

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

  • Experian given green light by ACCC to enter Australian credit reporting

    Credit active individuals will have yet another company to contact when obtaining their credit history, and it will be as important as ever for people to check their credit file regularly.

    There is a new player in the credit reporting game, and it has some of Australia’s biggest lenders as its shareholders. Back in May, we blogged about the possibility of U.K. giant Experian entering Australian credit reporting, and speculated on what the issues may be for credit file holders in this country.

    Today newly appointed ACCC Chairman, Rod Simms announced his approval of Experian’s entrance into the Australian market. The Sydney Morning Herald ran a story titled Experian is allowed to report for duty. The article says Experian will challenge the other two major credit reporting agencies, Veda Advantage and Dun & Bradstreet for Australia’s major credit reporter.

    “The Australian Competition and Consumer Commission chairman yesterday decided there would be no substantial lessening of competition if Experian became the third sizeable in the Australian market – even if the big four banks and two other big US-backed lenders (Citigroup and GE Capital) are minority shareholders.

    Veda and the Dun and Bradstreet group have been the big players until now, and the banks are among their largest customers. There was a fear that the banks now have a financial incentive to put all their business through Experian, or at least choke off the supply of customer credit information to service providers that will in future be competitors.

    Sims and the ACCC accepted the banks’ argument that their backing of a new entrant to the market in Experian was in fact designed to increase competition by adding some pricing tension for services,” the article says.

    So where do consumers stand amongst this change? According to the ACCC, they are in an improved state. They acknowledged Experian’s argument that the benefits to having a new credit reporting agency like Experian, is the greater competition for accuracy and efficiency that will result.

    In addition to this, Australia’s move to new positive credit reporting laws will be enhanced by a company like Experian which is experienced in this type of data collection in the U.K.

    But what about the accuracy of credit reporting – will this be enhanced?

    Currently, there are several pieces of legislation, including the National Consumer Credit Protection Act and the Credit Reporting Code of Conduct 2009 which have gone a long way to improving the accuracy of credit reporting, by imposing tougher penalties for creditors who don’t comply with the Acts. The ACCC Chairman, in all likelihood probably found that legislation was strong enough to combat any conflict of interest that could have resulted from having the creditors also being minor shareholders in the credit reporting agency.

    Whilst Experian will be bound to comply with this legislation as the other agencies are, the onus is on the consumer to check the accuracy of their credit report. This is where the system could fall down – through simple lack of public education. Yearly credit file checks are currently not in abundance for most credit active individuals. When disputing any adverse listing, it is up to the credit file holder to provide reason as to
    why the creditor has not complied with legislation if they feel there are errors on their credit file.

    Current statistics from Choice Magazine from 2004 point to up to 34% of credit files in Australia likely to contain errors.

    What is concerning, is that many creditors are getting away
    with not complying with Australia’s strict credit reporting legislation because consumers are simply not checking their credit file for errors. People are only finding out about any defaults, writs or judgments on their file when they apply for credit. This guarantees them an automatic decline with the bank and leaves them angry and stressed if they feel the listing should not be there.

    If more was done to educate consumers as to their right to check their credit file for free every year, then people would have time to repair any errors when it is not urgent. It could also increase pressure for creditors to enhance the accuracy of credit reporting.

    Is there a conflict of interest in terms of accuracy when many major Australian creditors will be small shareholders in the credit reporting agency? The ACCC found this was not the case.

    Currently people can obtain a copy of their credit file for free every 12 months from one of the Australian credit reporting agencies, Veda Advantage, Dun & Bradstreet or Tasmanian Collection Services.

    We recommend everyone should be concerned about the accuracy of their credit file. A yearly check should provide a picture as to its accuracy, and allow them the opportunity to redress any errors which present on their file prior to needing credit.

    And for borrowers whose lender requires a credit check to
    secure finance? We predict their application fee just got more expensive with the introduction of the new agency – potentially paying for three or four credit reports instead of two to three.