Tag: credit check

Critical internet security information: bug ‘Heartbleed’

Is your website or online service running OpenSSL? Or are you an internet user who gives out personal details or uses services within OpenSSL? Then your security may be at risk. According to internet security experts ‘Heartbleed’ is a major vulnerability in common encryption software which is affecting many websites and online services. Heartbleed is so widespread it could leave millions of servers on the internet open to an attack and could allow sensitive data including usernames and passwords to be stolen. We look more at this vulnerability, what you can do about it, and what the risks are when personal and financial information has been stolen, especially for the affected person’s credit rating.

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

The bug

The Government’s Stay Smart Online (SSO) website has issued a HIGH priority security bulletin for those websites and online services running OpenSSL due to a major security vulnerability which has been discovered:

The OpenSSL vulnerability is reported to have been around since 2011. Following recent publicity, there is growing evidence that websites are being targeted using this vulnerability.

According to SSO, around two-thirds of websites and many other services currently use affected versions of OpenSSL (which stands for Open Secure Socket Layer, the most common cryptographic software used on most web servers). You would recognise websites using OpenSSL by the small padlock icon in the browser address bar or the ‘s’ added to the ‘http’ prefix for web addresses.

There is an official webpage for this bug, and I encourage all to read the webpage, and seek help in this area if necessary. It advises that unlike bugs in single software or library which are able to be fixed by new versions, this bug is more dangerous because it has left a large amount of private keys and other secrets exposed to the Internet. Considering the long exposure, ease of exploitation and attacks leaving no trace this exposure should be taken seriously.

Heartbleed.com explains in more detail what the bug does:

The Heartbleed bug allows anyone on the Internet to read the memory of the systems protected by the vulnerable versions of the OpenSSL software. This compromises the secret keys used to identify the service providers and to encrypt the traffic, the names and passwords of the users and the actual content. This allows attackers to eavesdrop on communications, steal data directly from the services and users and to impersonate services and users.

The even scarier part of this vulnerability, is that if there had been someone hacking information, they would leave no trace of attack.

Who is at risk

OpenSSL is the most popular open source cryptographic library and TLS (transport layer security) implementation used to encrypt traffic on the Internet.

According to Heartbleed.com:

Your popular social site, your company’s site, commerce site, hobby site, site you install software from or even sites run by your government might be using vulnerable OpenSSL. Many of online services use TLS to both to identify themselves to you and to protect your privacy and transactions. You might have networked appliances with logins secured by this buggy implementation of the TLS. Furthermore you might have client side software on your computer that could expose the data from your computer if you connect to compromised services.

How widespread is this?

The most notable software using OpenSSL are the open source web servers like Apache and nginx. The combined market share of just those two out of the active sites on the Internet was over 66% according to Netcraft’s April 2014 Web Server Survey. Furthermore OpenSSL is used to protect for example email servers (SMTP, POP and IMAP protocols), chat servers (XMPP protocol), virtual private networks (SSL VPNs), network appliances and wide variety of client side software. Fortunately many large consumer sites are saved by their conservative choice of SSL/TLS termination equipment and software. Ironically smaller and more progressive services or those who have upgraded to latest and best encryption will be affected most. Furthermore OpenSSL is very popular in client software and somewhat popular in networked appliances which have most inertia in getting updates.

Affected versions of the OpenSSL

Status of different versions:

•OpenSSL 1.0.1 through 1.0.1f (inclusive) are vulnerable

•OpenSSL 1.0.1g is NOT vulnerable

•OpenSSL 1.0.0 branch is NOT vulnerable

•OpenSSL 0.9.8 branch is NOT vulnerable

Bug was introduced to OpenSSL in December 2011 and has been out in the wild since OpenSSL release 1.0.1 on 14th of March 2012. OpenSSL 1.0.1g released on 7th of April 2014 fixes the bug.

In Australian Broker on Wednesday, Deloitte security, privacy and resilience head Anu Nayer said it is vital for businesses who run a website or online service that the company’s technical team knows all the websites and web services the organisation has so they can check all the necessary sites. He outlined some important questions to determine your level of risk:

•How have you determined whether each of our websites and web services has OpenSSL service enabled?

•What type of sensitive information do we have that is accessible from the internet? What type of information would have been at risk?

•Have we looked at our logs to determine if there have been any successful or unsuccessful attempts to exploit this issue? What did we find? Are we monitoring our network to look for indications of attacks?

•What steps have we taken to mitigate the issue?

•How have you confirmed that the fixes have been applied successfully?

•Have you got assurances from our vendors, external hosting providers and application cloud services that they have fixed any vulnerable systems?

The risks

Obviously the information being shared in OpenSSL is of a secure nature for one reason or another, so someone with access to this information could do a whole host of things, including make use of, or on-sell information to fraudsters, cyber-terrorists or spammers.

They can also use the information to commit identity theft – the fastest growing crime in Australia.

Information like dates of birth, account numbers, full names and other personal information can be used to steal your identity and take credit out in your name. Fraudsters have been known to go so far as to take out personal loans, credit cards and even mortgage homes in their victim’s name. Unfortunately fraudsters are never so kind as to pay this credit back – which leads to defaults on your credit rating. Most victims are unaware of this until they apply for credit in their own right and are flat out refused.

Defaults remain on the credit file of individuals for between 5 and 7 years. Often not much of a trail is left and prosecutions don’t come easily.

The fix

Open SSL 1.0.1g or newer should be used.

If this is not possible software developers can recompile OpenSSL with the handshake removed from the code by compile time option -DOPENSSL_NO_HEARTBEATS

Nayer says for organisations, it would also pay to consider if it is appropriate to revoke any Certificates which were used while the organisation ran exposed versions of OpenSSL.

“Even after a fix is applied, the private cryptographic keys your systems are relying on to protect their communications could already have been compromised and this fix won’t address that compromise,” he said.

For consumers, changing passwords regularly may help, and in addition a regular credit check can ensure you aren’t vulnerable to identity theft. Look for changes in personal details as well as suspicious credit enquiries in your name as a first sign of identity theft.

Image: joesive47/ www.FreeDigitalPhotos.net

17/04/2014
End of financial year an important time for your credit file.

Media Release

End of financial year an important time for your credit file.

16 July 2013

As the saying goes….there are two certainties in this world – death and taxes. But there is another certainty in Australia. If you have ever taken out or applied for credit, you will have a ‘credit file’ in your name, and a consumer advocate for accurate credit reporting says the end of the financial year should be the time to include an all-important credit check to your financial repertoire.

Graham Doessel, CEO of MyCRA Credit Rating Repair says obtaining a copy of your credit report regularly is an essential component to maintaining good financial records.

“Most people don’t think about their credit file until they apply for credit, let alone the implications if they should find out they have a default or other negative listing against their name,” he says.

Mr Doessel believes most people don’t know they should check their credit file, because they are largely unaware of the frequency of credit rating errors, or listings added unlawfully by Credit Providers to Australian credit files.

“Unfortunately, paying all of your bills on time doesn’t always guarantee a clear credit file – there can be a number of go-wrongs including billing errors, unfair bills, address mix-ups and mistaken identities – and our growing client base is testament to this issue,” he says.

Credit reporting agency Veda Advantage alone holds over 16 million credit files in Australia, but currently there are no official statistics on the number of Australians with ‘bad credit’ or negative listings – although in the past there have been reports of that figure being around 3 million. Likewise, there are no statistics for the number of credit listings disputed with individual Credit Providers.

“This makes it difficult for individuals to get any scope for the likelihood that their credit file may contain errors,” Mr Doessel says.

He says Australians should check their credit file at least once a year with all relevant credit reporting agencies, to make sure they have the all clear.

“Although it is not well publicised, Australians can access a copy of their credit report every year for free from Australia’s credit reporting agencies,” he says.

You can apply for a copy of your credit report from agencies Veda Advantage, Dun & Bradstreet, Experian and Tasmanian Collection Services (if in Tasmania). A free report will be sent within 10 working days, or you can pay to get an urgent report.

Mr Doessel says the end of financial year is the best time to order a copy of your credit report – as your financial records tend to be in order if you have just completed a tax return.

“This way, if there are any items you wish to cross-check on your credit file, you will have all the necessary information at your fingertips,” he says.

If your report comes back with errors, or you feel a listing is unjust or shouldn’t be there, you do have the right to have incorrect information rectified.

“Depending on the nature of the dispute, this may be fairly straightforward, or you may find that it requires the help of a third party advocate,” he says.

You can also order a free copy of your credit report through MyCRA – http://freecreditrating.com.au/.

/ENDS.

Please contact:

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

Graham Doessel -Ph 3124 7133

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

MyCRA Credit Repair 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: patpitchaya/ www.FreeDigitalPhotos.net

16/07/2013
Are you lying to yourself when it comes to credit?

In this week’s ‘Make Credit Work For You’ post, we look at the lies we tell ourselves which see us taking on too much credit, or see us run into trouble with our credit file. Those lies can end up leaving us unable to pay, and blacklisted from credit for years to come. What should you be honest with yourself about when it comes to borrowing money? This post is inspired by David Koch’s recent article ‘Money lies you need to stop telling yourself’ featured on news.com.au.

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

According to Kochie, telling yourself financial lies is pointless. He says it’s time to toughen up and stop the lies, as these can cost us big time in the future.

So, what things can we lie to ourselves about, that could cost us our good credit rating down the track?

* As long as my job pays well, it’s OK if I hate it.

Kochie says staying in a job that you hate, even if it pays well, means you don’t have your heart in it, there will be no commitment, no passion and your boss will eventually latch on.

“Inevitably, you’ll be the first one to go in any redundancies and the one overlooked for any promotions,” he says.

So before you apply for credit, especially major credit like a home loan – it’s important to understand the long term commitment, and consider whether the career you’re in is going to fulfil you for at least several years to come. In the early years of a loan, your repayments will be at their highest and it will be essential to put your head down and pay off as much as possible.

Kochie says success comes easiest to those who love their job. So if you don’t – it might make sense to spend some time getting settled in a job you do love, before you apply for major credit.

However, if you are unhappy in your job and are currently paying off a mortgage or other significant loan – it’s important you are really smart about how you change careers. Consider your loan first and foremost before you make any drastic career changes. You don’t want to be caught out unemployed and unable to pay your loan.

* If I turn a blind eye, somehow my finances will work themselves out

Burying your head in the sand is never a solution to your financial issues. They only snowball. At this point in time in Australia, paying bills even one day late may directly impact your credit file, through licensed Creditors recording your repayment history information. Paying them later than 60 days will see you defaulted.

The government has made changes to credit laws in order to assist consumers in financial difficulty, but you need to put your hand up and own your financial problems, and you need to have a plan.

To begin with, stop lying to yourself about how much money you actually have. To get any help, or to help yourself, you first need to know exactly how much you have left at the end of the week – or even how much you are in the red.

If you know you can’t make your credit repayments, work out how much you can pay from what you have, and give this information to your Creditors to negotiate a financial hardship plan which may see your repayments reduced for a period of time. For more information on financial hardship variations, visit ASIC’s MoneySmart website.

If you are not in dire straits yet, don’t wait till you’re there to do something about it. Kochie recommends starting with a plan that involves either cutting back expenses or earning extra income to balance the books. Make a goal, make a plan and get yourself there.

* I should buy a home because that’s what grown-ups do

Despite the ethos that everyone in Australia has the right to own their own home, buying a home is not right for everyone. Kochie argues that for some, renting and investing your savings can be a better financial option.

For others, they may see more results being able to buy a home and focus on paying down the mortgage (creating equity) as their investment strategy.

And some people just won’t be able to meet the big financial commitment that a home loan entails, even if they want to, and even if on paper, they look like they could. If this is you, consider that for now, you may be better off learning more about how to make credit work for you, to gain more money skills and adopt a different attitude towards money and credit before you take the plunge.

* If I dip into my savings now I can always make up for it later

Kochie advises it’s way more productive to leave your savings untouched and earn extra to pay for the item or experience. If you are saving for a home or business loan, then more savings means cheaper credit.

* If I get approved for a loan or credit limit increase, I can afford it

Kochie says this is probably the most dangerous of all lies. “Forget what the bank is offering in terms of increased credit card limits or loan amounts, only you really know what you can afford,” he says.

Remember, the bank doesn’t have to pay your loan back – you do.

Some other lies you can tell yourself about credit which you shouldn’t:

* No news is good news when it comes to bills.

No its not! If you think you should have received a bill and haven’t, the best thing you can do is chase it up. Nine times out of ten your Creditor thinks you should have received it, and you accrue days in arrears, meaning they may default you anyway whether you received the bill or not. This is especially important if you change addresses.

*If I love someone, money doesn’t matter.

Money still matters and when it comes to credit accounts, love may be blind but your Creditors are not. You need to keep your head in money matters when love is good and when love goes bad. Sometimes joint credit accounts can land you in hot water. Cover yourself and your credit file against the worst.

* Someone else will tell me if my credit file is not accurate.

No they won’t, it’s up to you to be proactive. There is an avenue for complaint if you think your credit file is inaccurate, but the responsibility for finding out whether everything is correct rests which the individual credit file holder. So it is really important that you do an annual credit check (which is free) through Australia’s credit reporting agencies. Don’t leave it until you’re applying for a home loan to find out you have defaults or other credit listings you don’t think should be there.

To find out more about credit file accuracy, visit our main site www.mycra.com.au or call a Credit Repair Advisor tollfree on 1300 667 218.

Image: Teerapun/ www.FreeDigitalPhotos.net

09/04/2013
Is your New Year’s Resolution to buy a home? Check your credit rating doesn’t have a shady past first.

Media Release

Is your New Year’s Resolution to buy a home? Check your credit rating doesn’t have a shady past first.

8 January 2013

As the calendar has rolled to the 2013 New Year, many Australians have declared their intentions to knuckle down and put together a deposit for a home – but a consumer advocate for accurate credit reporting warns – before people apply for a loan, they should check they don’t have a shady past with credit they are not aware of.

CEO of MyCRA Credit Rating Repair, Graham Doessel says there are many reasons people can embarrassed with a bad credit rating and refused a home loan at the time of finance application, and the reason is not always as simple as failing to make payments on time.

“People have got to be dedicated to be able to get together the minimum 10 per cent deposit that is generally required to buy a home today, but some people are getting to the credit check and are told they have bad credit history and they have no idea why,” Mr Doessel says.

Prospective buyers may apply for a loan, only to be refused due to credit file defaults which show up on their credit report. Any creditor is able to place a default on a consumer credit file if a repayment is later than 60 days. Credit listings range in duration from 5 to 7 years depending on the listing type.

Mr Doessel says home buyers do not always have bad credit because of something they have done wrong.

“Paying your bills on time should, but doesn’t always guarantee a clear credit file. As credit repairers, we see a multitude of instances where the creditor has made a mistake and placed a default or other listing on the consumer’s credit file when it shouldn’t be there. Often it’s not until the credit file holder applies for credit that they are made aware of it, but at that time it’s too late, they often lose the home they are buying,” he says.

“Credit file mistakes are common, and can be because of simple human or computer error but the end result is that the consumer is blacklisted from credit for at least five years unless they can prove the listing is unlawful.”

Consumers can check their credit file for free every year, by requesting a copy from Australia’s credit reporting agencies.

“It is good financial practice to request a copy each year, but there is never a more important time to make sure your credit report is accurate as BEFORE you apply for a home loan, so you don’t lose the home you have your heart set on. Credit reporting mistakes do happen, but the watchdog is you,” he says.

If a default has been listed ‘unlawfully’ you have the right to request its amendment, or removal from your credit file.

“If there is something amiss on your credit report, if you find have a shady past with credit that you believe is unfair, don’t let that one notation ruin your life. It’s not easy to dispute a credit listing, but if it shouldn’t be there, it’s a point worth fighting for,” Mr Doessel says.

People can visit http://www.mycra.com.au/credit-file-request/ for help to get their credit report.

/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 246 Stafford Rd, STAFFORD Qld

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

Image: digitalart/ www.FreeDigitalPhotos.net

08/01/2013
1.2 million Australians per year fall victim to fraud

The Australian Bureau of Statistics has released their Personal Fraud Survey, which was conducted over 12 months in 2010 and 2011. The results are interesting, with some noteworthy trends on identity fraud, identity theft and scams coming out of the figures from this survey. One of particular significance was that almost half of the identity theft victims had no idea how their personal details were obtained.

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

This is the second Fraud Survey of its kind for the ABS, with the previous Personal Fraud Survey conducted in 2007.

The ABS Personal Fraud survey shows a total of 1.2 million fraud victims in Australia (aged 15 years and over) were a victim of at least one incident victims of personal fraud in the 12 months prior to interview in 2010-11.

“This equates to a national victimisation rate for personal fraud of 6.7% of the population aged 15 years and over. This is an increase from the 806,000 victims of personal fraud in 2007 (5.0%),” The ABS reports.

“The total financial loss recorded from this fraud in Australia amounted to $1.4 billion. Three in five victims of personal fraud (60% or 713,600 persons) lost money, an average of $2,000 per victim who incurred a financial loss. The median loss for personal fraud was $300,” The ABS reports.

In the 12 months prior to the survey, an estimated 702,100 Australians were victims of identity fraud, or 4.0% of the population aged 15 years and over. This is an increase from the 499,500 victims of identity fraud in 2007 (3.1%).

Credit card fraud was most common, with an estimated 662,300 Australians aged 15 years and over or 3.7% of the population reporting incidents of it.

In the 12 months prior to survey in 2010-11, an estimated 44,700 Australians were victims of identity theft, or 0.3% of the population aged 15 years and over.

According to the survey results, an estimated 6.4 million Australians were exposed to a scam in the 12 months prior to interview, or just over a third of the population. An estimated 514,500 Australians aged 15 years and over (2.9%) responded to a scam in the 12 months prior to survey.

A little more on identity theft…

It has become most likely that should people fall victim to identity theft, that their personal information is used to gain credit or finance in some way. And frighteningly, nearly half of all these victims don’t know how their personal information was obtained. Many (12%) don’t know about identity theft until they perform a credit check or one is performed on them for some reason.

“One in five (19.9%) victims of identity theft indicated having their personal information used for applications for a loan or to gain credit in the five years prior to interview in 2010-11, making it the most common way that personal information was used.

Just under a third (31.8%) of identity theft victims discovered that they had been a victim of identity theft via a notification or query from a government agency, 15.1% through a bill from a business or company, and 12.0% through a credit check.

The most common known way that victims’ personal details were obtained in the commission of identity theft was in person (28.3% of victims), followed by email/internet (10.0%), although nearly half of all victims (44.0%) reported that they did not know how their personal details were obtained,” the ABS reports.

Those people in the 25-55 age group were most likely to be victims of identity theft. Those who were gainfully employed were twice as likely to become identity theft victims, as were those earning over $2,000 a week.

How can people go all the way to the credit check before realising they are victims of identity theft?

It depends on the fraud type. In cases of out and out identity theft, fraudsters have secretly gained personal information in some way (the victim may not even be aware of where their personal details have been compromised). The fraudster gains enough information to go about making some form of duplicate identity, and then unbenownst to the victim, they apply for credit in the victim’s name.

In cases where the fraudster has been successful, the fallout can be a nightmare for the identity theft victim. Generally the victim is left with a series of overdue accounts on their credit file. These show as default listings or clearouts will stop the victim from being able to borrow for between 5 (defaults) and 7 (clearout) years.

But just like any other form of credit file inconsistency, it is up to the credit file holder to prove the inconsistency and in the case of the identity theft victim, that it wasn’t them that took out the credit in the first place. This could be really difficult for those people who can’t even prove where their personal information was stolen let alone how.

To find out more about identity theft, visit our identity theft fact page How to Prevent Identity Theft and Keep a Clean Credit Rating or visit the MyCRA website http://www.mycra.com.au/identity-theft/.

Image: Victor Habbick / FreeDigitalPhotos.net

23/04/2012
Helping clients save money through credit repair

As brokers we are continually faced with meeting clients whose credit report lets them down. These clients stack up financially on all levels…until that last minute credit check reveals they have an adverse listing on their credit file.

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

Many brokers who come across clients with a bad credit rating either turn them away or if they are otherwise suitable for finance, guide them into a more flexible non-conforming loan.

But many brokers may be surprised to know it can be cheaper for the client to undergo credit repair – and if the client identifies errors or inconsistencies in their credit report – it could ethically be the best option for the client.

For instance, let’s calculate the figures on an average loan of $400,000 over 30 years, comparing non-conforming loan interest rate of 9.5% with a standard variable rate of 7%. The client would be paying a staggering $702.71 per month with non-conforming loan interest rates. They will be hit with $22,867.15 more in home loan repayments over the first three years of the loan.

Credit repair would not be suitable for those people who demonstrate an inability to make repayments. But as credit repairers many times we find the client has errors on their credit report, or the listing is unjust – and that we can rectify. Often we can determine that the file can be completely cleared, allowing the client access to a whole range of loans they were previously unsuitable for.

The popularity of credit repairers is due to a large volume of errors made by creditors on credit files, and a system of redress which is often difficult for the credit file holder to navigate.

The number of errors on credit files in Australia is astounding. Many of our clients thought they had impeccable repayment histories and would have never dreamed they would end up with a default. Let me tell you mistakes do often happen. Sometimes simple human error by the creditor leads to defaults incorrectly listed.

Whilst paying bills on time is the best way to ensure a clear credit file, it does not guarantee a clear credit report.

Statistics released by the Australian Consumer Association (now Choice Magazine) from a study conducted in 2004 showed around 34% of the clients surveyed had credit files which potentially contained errors in some way.

Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

“We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

The nature of credit reporting is that there is much opportunity for human error and these errors are usually not uncovered until people go about checking their credit file. Often people are unaware of their responsibility to maintain the accuracy of their own credit file – and so they don’t find out about their credit issues until they apply for a home loan.
Then, once people find problems with their credit file – they often find the process of removal of errors from their credit report difficult.

Current legislation does allow people to have inconsistencies removed from their credit file, but in reality many people are not successful when they attempt to fix it themselves. Often it is because they are not schooled enough in the legislation or can’t devote the necessary time to it to ensure a successful credit repair. Sometimes people who attempt default removal themselves can do more harm than good through lack of knowledge, or difficulty in negotiating with creditors.

One thing brokers can do to encourage a better transaction is to refer clients to us to have their credit checked prior to applying for finance. They can take advantage of their yearly free credit file check, which would uncover any problems with the credit file prior to finance application, and ensure the client is in the best possible position for qualifying for a loan. Plus a client does not generate a credit enquiry when they request a copy of their own credit file.

Brokers can also potentially save thousands in lost commission by helping those that may otherwise be turned away to get a clear credit file.

Once the credit file is repaired the client is then passed back to the referring broker to be fitted to the loan of their choice.

For more information for brokers on the benefits of referring clients, contact MyCRA Credit Repairs or call tollfree 1300 667 218.

Image: Ambro / FreeDigitalphotos.net

02/02/2012
First home buyers missing key step to finance approval

Media Release

23 November 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

/ENDS.

Please contact:

Lisa Brewster – media@mycra.com.au

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

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

Links:

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

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

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

Image: photostock/ FreeDigitalPhotos.net

08/12/2011
July’s Lending Finance statistics

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

JULY KEY POINTS

JULY 2011 COMPARED WITH JUNE 2011:

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

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

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

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

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

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

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

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

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

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

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

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

Image: Idea go/ FreeDigitalPhotos.net

15/09/2011

New statistics paint positive picture of housing market

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

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

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

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

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

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

JULY KEY FIGURES

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

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

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

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

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

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

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

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

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

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

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

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

08/09/2011

Tag: credit check

Media Release

End of financial year an important time for your credit file.

Media Release