MyCRA Specialist Credit Repair Lawyers

Tag: credit enquiries

  • Credit Enquiries  – And How They Affect Your Credit Score

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    Credit Enquiries  – How They Affect Your Credit Score

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    (And How Just One Particular Credit Enquiry Can Be Very Bad News For Your Finance Application) 

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    By now, you might have heard that your credit application can be declined for a variety of reasons such as Insufficient income or assets, or excessive expenses, and debts.

    It’s also commonly known that defaults, court judgments, and court writs can also cause your loan application to be declined. But there’s another sinister demon lurking amongst your credit score – deeming you a high credit risk.

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    ENQUIRIES

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    The number (and type) of enquiries you’ve made is becoming more and more the sole reason why many loans are being declined by prudent lenders in the current tighter money environment. Many consumers are unaware of how quickly these can add up, what number is too many, and more importantly, what to do if you encounter this problem.

    Credit enquiries can add up very quickly.  Some of your ordinary actions may count as a credit enquiry, such as:

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    getting a new phone

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    upgrading your existing phone

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    getting the power or gas put on

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    signing up for Pay TV

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    making online credit card enquiries

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    making online personal loan applications

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    enquiring about ‘in store’ credit for a new TV, Washing Machine etc.

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    enquiring about ‘interest free’ credit instore or online

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    asking about a limit increase or balance transfer on your credit card.

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    Approved or Declined – It doesn’t matter… The enquiry is probably still recorded and held against you as a credit enquiry!

    It’s easier to see now, just how quickly an individual can rack up enquiries.

    Did you know that four credit enquiries in the last six months or just six credit enquiries in the past 12 months can deem you a ‘Bad Credit Risk’ to many lenders? So, just getting a new phone could be enough to ensure your next credit enquiry or loan application is declined.

     

    That’s right – If you shop around for the best deal, each phone company can check your credit file and each one adds another credit enquiry to your credit report.

     

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    If you’re applying for a mortgage, this can often result in more than one credit enquiry.

    One when the application was initially assessed by the bank or mortgage broker, and again when the loan is ready to be formally approved. In some instances, if the loan application process extends over a longer time, or the details on the application are changed or amended because your circumstances changed, or you found a different property, more enquiries could be added. We have seen as many as 9 credit enquiries from one mortgage application.

    Worse still, if you’ve made an enquiry for credit with a lender commonly referred to as a ‘Payday Lender’, you’re likely to be automatically declined and refused credit instantly from most mainstream lenders.

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    There Is Good News…

    MyCRA Lawyers often finds credit enquiries to be deemed ‘unreasonable’ or ‘unnecessary’ or ‘unsubstantiated’ and many of these credit enquiries can be removed. MyCRA [Credit Repair] Lawyers are widely known as the best of the best for all matters relating to credit reporting. This includes credit repair, credit score improvement, financial reputation restoration and the removal of black-marks, defaults, judgments, writs, clearouts and credit enquiries.

    Mr. Graham Doessel, Founder and Chief Executive Officer of MyCRA Lawyers says that “any credit-related listing which should not have been placed on an individual’s credit file can and should be removed, even as a matter of principle”. Graham says, “even though these may not affect you right now, they most definitely can and will affect you in the future.”

    If you suspect that you might be in danger of having either blemishes or too many credit enquiries on your credit report, contact MyCRA Lawyers today on 1300 667 218 to check your credit score and if necessary, take the most appropriate action to correct and restore your creditworthiness.

     

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    MyCRA lawyers has successfully removed defaults, credit enquiries, Judgments, writs, clearouts or other black marks from most creditors including, Optus, Telstra ANZ, Vodafone, NAB, Credit Corp, Lion Finance, Pioneer Credit, ACM Group, Flexirent, Bartercard, Westpac, CBA, Commonwealth Bank, Bank of Queensland, BoQ, WBC, St George, Panthera Finance, Citibank, Origin Energy, GE Capital, Latitude, Suncorp, State Mercantile, Axess Debt Management, Coogan Stores, AMEX, Elgas, Energy Australia, Integral Energy, Bankwest and so many more.

    And MyCRA Lawyers has helped clients from all over Australia including but not limited to Brisbane, Sydney, Melbourne, Canberra, Hobart, Adelaide, Perth, Darwin, Townsville, Mackay, Rockhampton, Gladstone, QLD, WA, NT, SA, VIC, TAS, ACT, NSW, Wagga, New castle, Bundaberg, Aberfeldie, Aberglasslyn, Alberton, Alexandria, Allingham, Allora, Araluen, Arundel, Ashmore, Aspley, Atwell, Australind, Aveley, Avondale Heights, Bakewell, Baldivis, Beckenham, Belair, Belfield, Bellbowrie, Benneets Springs, Berwick, Bexhill, Blackwater, Bohle Plains, Bolder Kalgoolie, Bondi Beach, Boondal, Boondall, Boronia Heights, Bowen Hills, Bracken Ridge, Bray Park, Brighton, Brinsmead, Brisbane, Broadbeach, Brooklyn Park, Brookvale, Brunswick East, Bunbury, Caboolture, Calamvale, Camp Hill, Carrara, Casey, Cashmere, Caulfield South, Chermside West, Chester Hill, Claremont, Clarkson, Clayton South, Cleveland, Clounes, Clyde North, Collaroy, Collingwood Park, COOLAROO, Coolum Beach, Craigieburn, Cranbourne East, Cranbourne West, Cremorne, Currajong, Dalby, Downer, Drewvale, Drouin, Dudley, Earlwood, East Bentleigh, East Cannington, Eight Mile Plains, Elderslie, Ellanora, Ellenbrook, Endeavour Hills, Epping, Epsom, Eschol Park, Evatt, Fassifern, Ferny Grove, Fishery Falls, Fitzgibbon, Five Dock, Flinders View, Forrestfield, Fortitude Valley, Fulham, Fullarton, Geebung, GEELONG, Gippsland, Girraween, Glen Waverly, Glenelg, Glengowrie, Glenhaven, Gold Coast, Golden Beach, Goonellabah, Gosnells, Grasmere, Greenvale, Gulgong, Halls Head, Hamilton South, Hampton Park, Happy Valley, Hassall Grove, Havelvean Road, Hawthorne, Hazelwood Park, Heathmont, Hemmant, Hillbank, Hope Island, Hove, Howrah, Ingle Farm, Ivanhoe, Jimboomba, Kalamunda, Kangaroo Point, Kearneys Spring, Kelmscott, Kenmore, Kensington Gardens, Kenwick, Kewarra Beach, Kingston, Koondoola, Labrador, Launceston, Jovermay, Launching Place, Lawnton, Leichart, Lennox Head, Little Bay, Littlehampton, Logan Reserve, Logan Village, Londonderry, Macgregor, Mackenzie, Maddington, Manly, Marshall, McGraths Hill, Meadow Heights, Melton, Menai, Merrimac, Middle Park, Millbridge, Moorebank, Mooroolbark, Mordialloc, Morphett Vale, Mosman, Mount Gravatt, Mount Nathan, Mount Waverley, Mountain View, Mt Alford, Mulgrave, Mulgrave, Murrumba Downs, Murwillumbah South, Mylor, Mysterton, Nahrunda, Narre Warren East, New Auckland, New Farm, Nickleham, Niddrie, Noble Park, Nollamara, North Lambton, North Mclean, North Paramatta, Oakleigh East, Ocean Grove, Old Beach, Ormea, Pacific Pines, Pallarenda, Palmerston, Parafield Gardens, Parkes, parkwood, Parramatta, Parrearra, Peppermint Grove, Pittsworth, Point Cook, Point Lonsdale, Prahan, Punchbowl, Quakers Hill, Quaker’s Hill, Ramsgate Beach, Ramwick, Rangeville, Redbank Plains, Redcliffe, Redland Bay, Regents Park, Rhodes, Richlands, Ringwood, Robina, Rochedale South, Rokeby, Ropes Crossing, Roseworthy, Rothwell, Rowville, Royal Park, Ruse, Safety Beach, Samford Valley, Sanctuary Cove, Scone, Seaholme, Seaview Downs, Seddon, Slacks Creek, South Tweed heads, South Yarra, Southport, Springbrook, Springfield Lakes, St George, St James, St Kilda East, Stafford, Stafford Heights, Success, Sunnybank, Sunshine West, Surfers Paradise, Syzehanar, Tallebudgera, Tambar Springs, Tarneit, Taylors Flat, Templestowe, Thornlands, Toowong, Torquay, Traralgon, Trigg, Trinity Park, Tuggerawong, Underwood, Upper Coomera, Upper Mt Gravatt, Varsity Lakes, Victoria Point, Wacol, Wallen, Warragamba, Warrawong, Warriewood, West Sunshine, Westmead, Whale Beach, Whittington, Wiangaree, Wickham, Willaston, Willetton, Wilson, Wishart, Wombarra, Woronora Heights, Wyoming, Yanco, and so many more…

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  • Do You Have Too Many Enquiries On Your Credit File

    Do You Have Too Many Enquiries On Your Credit File

    Did you know that too many credit enquiries (online credit card application & loan enquiries etc.) can stop you getting your home loan?
    Q. What is a credit enquiry?
    A. A credit enquiry can be generated whenever you actually apply for a form of finance or credit.

    Q. How many credit enquiries is too many credit enquiries?
    A. That depends on the type of finance you are applying for. We do know though that as little as 3 credit enquiries can stop you being approved for your home loan.

    Q. Do I need to be approved the finance for it to be recorded on my credit file?
    A. No, the simple act of making an application (online or offline) can show up as an enquiry

    Q. What information is recorded on my credit rating?
    A. Usually, your credit file will show:

    • The Date of the enquiry
    • The amount you applied for
    • Creditor you applied through
    • If it was just you or if you applied with a partner
    • The reference number of the enquiry
    • If the enquiry was for commercial or consumer purposes
    • And finally the reason for the enquiry (I.e. Car loan, overdraft, mortgage etc.)

    Q. Is there anything else I need to know about Credit Enquiries?
    A. Yes, be wary where you get a copy of your credit file as the wrong type of enquiry can hurt you even more.

    • for example, if you have a company “We Remove Bad Credit” listed on your credit rating, it will raise a RED FLAG for many lenders.
    • MyCRA Lawyers can help you get a copy of your credit file BUT
    • MyCRA Lawyers will NEVER appear on your credit file

    Q. Where can I quickly and easily get a copy & check my credit file?
    A. If you need to check what is on your credit file today, MyCRA Lawyers (Tel: 1300-667-218) can help you get a copy (with no trace of MyCRA Lawyers) of your Equifax (Formerly Veda Advantage) Credit file (with your credit score) and a copy of your Dun & Bradstreet credit file from within one business hour…

    To get a copy of your Equifax (Formerly Veda Advantage) and your Dun & Bradstreet credit reports, call MyCRA Lawyers on 1300 667 218 now.

    If too many enquiries are stopping you getting your finance, Call MyCRA Lawyers has been successful in removing credit file enquiries.

    Call MyCRA Lawyers now on 1300-667-218 to have MyCRA Lawyers help you remove excess credit enquiries now.

  • 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.

    internet security

    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

     

  • Late payment grace period extended to 14 days

    grace period 14 daysAn application by the Australian Retail Credit Association (ARCA) to extend the 5 day ‘grace period’ to 14 days for late payment information  on credit reports was approved by the Information Commissioner late last week. The amendment to the Credit Reporting Privacy (CR) Code will mean consumers will have more time to pay their credit card or loan account before they cop the new type of bad credit a ‘late payment’ notation. We look at the details of this important change and what this means for you and your credit rating.

    By Graham Doessel Non-Legal Director of MyCRA Lawyers

    Since 12 March 2014, Australian credit reports can include a range of new information available to lenders, including repayment history information. Up until last week, repayment history information could be recorded on licenced credit account which was more than 5 days late.

    But following widespread concern across the community that a 5 day grace period was not long enough to ensure simple forgetfulness or mistakes didn’t see consumers hit with a black mark on their credit report, Attorney-General, George Brandis requested a change. ARCA submitted an amendment to Office of the Information Commissioner (OAIC) to extend the grace period to 14 days, which was approved last week. Consumer advocates (including myself) had argued that the original 5 days late was not long enough to indicate significant credit risk.

    “Given the concerns raised by the community and reflected by the Attorney General on this matter, we agree that a 14 day grace period is an appropriate compromise before a late payment is recorded as Repayment History Information,” ARCA CEO Damian Paull stated in a media release after making the submission to the OAIC.

    He says Repayment History Information helps improve the accuracy of predicting the credit risk of consumers, and consumers need to understand the difference between late payments and defaults.

    “One late payment on your credit report is less serious than a default. Any of us can be on holidays or forgetful, and a late payment can be offset by an overall positive history of paying most accounts on time. Defaults on the other hand are always more serious,” he said.

    I am encouraged that the grace period has been extended to 14 days, and I understand that one late payment on a consumer’s credit report should be much less serious than a default. But at the same time, I fail to see how exactly consumers are meant to understand the differences between a late payment and a default.

    We know the process of assessing credit worthiness is a matter for each lender to determine and given this, consumers have been given no information or examples from lenders in which to garner any understanding on the differences between how a default and a late payment will be treated.

    As someone experienced with seeing the effects of bad credit, I can only make assumptions based on how most mainstream lenders have treated other ‘black marks’ on credit reports. In the past, a client with a default has most often been refused credit with mainstream lenders, too many credit enquiries on the client’s credit report within a certain time frame has also in the past meant credit refusal. Consumers with these black marks who have not been out and out refused credit have alternatively been offered a higher interest rate than someone with a clean credit file.

    I predict that late payment notations will probably be treated the same way. A certain number within a certain time frame could mean credit refusal, a certain number could also mean a higher interest rate for the prospective borrower. So what’s the magic number? I guess we’ll have to wait and see.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Commercial defaults: don’t risk it with your small business

    Media Release

    small business creditCommercial defaults: don’t risk it with your small business

    12 September 2013

    Credit to fund small businesses can be difficult to obtain, and a credit expert warns it is important to stay under the radar when it comes to your credit file to ensure you are not defaulted when you need it most.

    CEO of national credit repair company, MyCRA Graham Doessel, says small businesses can sometimes find repayments a juggling act but when it comes to maintaining a clean credit file it is essential to make sure all accounts are paid on time.

    “Running a small business can be a bit of a juggling act especially if revenue isn’t consistent, but despite this, it is essential that systems are developed to ensure accounts are paid prior to the due date regardless,” Mr Doessel says.

    He says many people don’t realise the ramifications of paying accounts late. Whether it be a business account or a consumer account – if it more than 60 days late you will likely end up with a default on your credit file. Even one account in default could mean you are either refused credit altogether, or offered a much higher interest rate.

    “Many businesses can find the higher interest charges alone can set them back way too much to make expansion or starting up viable,” he says.

    “I have a current client trying to fight a mistake on his business credit file which has seen a $1,000 default hinder a $1.4 million loan. Although he has been offered a loan, the 2% interest rate increase for bad credit will mean he has to pay a staggering $28,000 per year in additional interest.”

    He adds, that defaults can be made quickly, with less protection for SME’s in the commercial landscape.

    “Although many Credit Providers adhere to the 60 days in arrears rule before placing a default on your commercial credit file, technically, they don’t have to. The normal protections consumers are afforded in the Credit Reporting Code of Conduct are not extended to commercial credit,” he warns.

    Despite the laws, many of the Ombudsman Services do encourage Credit Providers to give adequate written notice to remedy an account in arrears prior to listing a default.

    Ideas to minimise your risk of defaults

    1. Pay all accounts on time. You need to have systems in place whereby credit cards and all bills are paid on schedule. If the business is running behind, Creditors need to be contacted and payment plans possibly worked out before the due dates to best avoid a default listing on your credit file. Be aware, that repayments to licenced Credit Providers (loans, credit cards etc) which are more than 5 days late will be noted missed on your credit file and listed as a ‘late payment’. These remain on your credit file for 2 years.

    2. Ensure all accounts are paid to you on time. Chase up bounced cheques and failures to pay immediately.  Too many accounts left unpaid can leave you short and run your business into the ground if left to continue. Regard any client non-payment as potential risks to your credit rating.  Develop a tactful system for retrieval ahead of time – reminding clients of the risks to their credit rating by defaulting on payments to you. If overdue accounts go beyond 60 days, notify the account holder in writing you will be referring the non-payment to a credit reporting agency.

    3. Consider credit checks for all potential account holders. Anyone who requests an account of significant proportions could be required to submit a credit application before the account is instigated. This involves you running a credit check on them with one of the major credit reporting agencies.

    4. Regularly obtain a copy of your credit file – once a year is recommended to ensure it is all as it should be. If there are any discrepancies or listings which you believe should not be there, address them prior to needing the extra credit for your business. This will mean less stress for you. You can do this by visiting www.freecreditrating.com.au.

    5. Minimise credit enquiries. If you are not sure about your business’ credit health, run your own check before applying for new credit.  You should also minimise credit applications. Some lenders are rejecting loans for as little as two credit enquiries in 30 days, or six enquiries within the year – so it pays to only apply for credit you intend to pursue.

    6. Safeguard your consumer credit file. Business is touchy and subjected to many unknowns, but the family home and your consumer credit file should be kept protected. If some major clients go under, and payments are not made – who’s going to help fund your now over-extended mortgage? Not only can your credit rating be compromised for five years, but your spouses’ as well. Any new credit will be at sky-high interest rates. You might lose the business, and any opportunities to borrow again for business in the future, but worse, you might lose your family’s ability to borrow at good rates for a mortgage, personal loan, credit cards and even mobile phones.

    7. Monitor your accounts regularly.  If you are the owner of the business but not the person responsible for accounts, ensure you still have hands on knowledge of the business’ expenses.  Check accounts are being paid; check receipts and credit card statements regularly.

    Mr Doessel says in the current economic climate with businesses potentially more likely to pay accounts late, there has never been a more important time to protect your credit rating.

    “Choose your credit wisely, choose your clients wisely, and make paying your debts a priority – regardless of the size of your business,” he says.

    You can find more information on your credit rating at www.mycra.com.au.

    /ENDS.

    For further comment:

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

    Graham Doessel – CEO MyCRA Ph 3124 7133     www.mycra.com.au   www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld

    Photos available on request.

    This Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Refinancing plans could be ruined by errors showing bad credit history

    Consumers have been urged to move their mortgage away from the ’big four’ banks  as a response to the raising of home loan rates this month, despite record profits. But any home owner looking to refinance needs to consider they could have a surprise bad credit history. It is important for them to check their credit history prior to making any finance application, even if they think their repayments have always been met on time.

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

    This month all four of the big banks – ANZ, Commonwealth, Westpac and NAB – raised their interest rates despite the Reserve Bank of Australia keeping the official rate on hold.

    Consumer watchdog ‘Choice’ launched a  campaign ‘Move your Money’ recently, urging Australians to change from the big four banks to save money and drive competition.

    “The CHOICE Move Your Money campaign is about consumers standing up and saying ‘enough is enough’, sending the big four bank CEOs a message in a language they understand,” says Christopher Zinn, CHOICE director of campaigns and communications.

    “The major banks rely on perceptions that switching is too much hassle or that there are no better deals out there. But experience shows that consumers can save by also ‘thinking small’, and moving your money is now easier than before,” says Mr Zinn.

    But rushing in to refinancing may not be sensible for everyone in today’s market.

    Home owners need to calculate the in and out fees that may be present on any new loan prior to making the switch.

    Also prior to making a re-financing application, home owners should check their credit file, as their credit history could contain inconsistencies they aren’t aware of.

    Regardless of whether people have been diligent payers, creditors can and do sometimes make mistakes with credit files and they can end up with black marks against their name that just shouldn’t be there.

    Sometimes people don’t know their good name is compromised until they apply for finance or in this case re-finance and are refused.

    The reason home owners should perform a credit file check prior to finance application, is because sometimes too many credit ‘enquiries’ can also hinder finance approval.

    If a credit enquiry from a lender finds a default against a person’s name, warranted or not, they will be refused finance. That lender’s ‘enquiry’ now shows up on the credit file for 5 years along with the default, creating two negative entries instead of one.

    A bad credit rating can result when a bill or repayment goes unpaid past 60 days. After this time, a creditor has the right to list that non-payment as a ‘default’ on the person’s credit file.

    In the current finance market, any black mark generally results in an automatic decline with the major lenders.

    The volume of credit file errors on Australian credit files is uncertain.

    A Veda Advantage spokesperson recently estimated 1% of the 250,000 credit reports they give out as a credit reporting agency to Australians every year contain a material error on the credit file.

    But the Australian Consumer Association (now Choice) survey from 2004 revealed that 34% of the credit files surveyed in their small scale study contained errors or inconsistencies.

    Approximately 63% of the clients who request credit repair have defaults, writs or Judgments which are listed in error on their credit file.

    We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors.

    Under current credit reporting legislation, consumers are entitled to obtain a copy of their credit report from the credit reporting agencies once a year. A person requesting their own credit report does not generate a ‘credit enquiry’ on their credit file.

    People need to contact all the credit reporting agencies to request their report – as creditors have access to 3 agencies within mainland Australia and 4 in Tasmania. The report must be provided to them in writing within 10 days of the request.

    Listings are not removed by creditors unless the file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But for those people whose financial freedom is hindered because their credit file contains errors, it is a point worth fighting for.

    People can contact MyCRA for help with getting a free copy of their credit file on 1300 667 218 or visit www.mycra.com.au.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

  • How to keep your credit rating healthy

    7 ways to keep a squeaky clean credit file and get that home loan or finance….

    By Graham Doessel.

    Many people don’t realise how easy it is to get a bad credit rating, or how difficult credit repair can be.

    A clear credit file is so important because it is the key to your financial freedom. In today’s economic times, it is essential that your credit file be kept clear of any black marks.

    Any defaults (overdue accounts which have lapsed past 60 days), writs, judgements or bankruptcies which are recorded on your credit file will remain there for 5 years.

    A bad credit rating can prevent you from obtaining a mortgage, car or personal loan with banks but many don’t know it can also prevent you from obtaining a simple mobile phone plan.

    So how do you go about avoiding a credit rating default and keep your credit rating looking as healthy as possible? Outlined below are 7 essential tips:

    1. Use credit
    It may be tempting to get rid of all credit. But it is easier to obtain credit for a mortgage or business loan if there is some kind of reference of your credit history on your credit file. Taking out small accounts such as a mobile phone plan may be a good choice as long is each payment is made on time.

    2. Pay bills on time
    If you pay all accounts on time and by the due date, there is less chance you could receive a default listing on your credit file. If you can’t pay your account by the due date don’t bury your head in the sand – call the creditor and try to work out some type of payment plan.
    This contact may be enough to ensure your credit rating is not tarnished. If you receive a bill you don’t agree with, it is still essential to pay the account by the due date to avoid a default listing. Better to make the payment and be reimbursed for the difference than be paying for 5 years for someone else’s mistake.

    3. Be smart with credit
    Credit should be the key to financial freedom, but often it is the source of a great many problems in people’s lives. Yahoo’s Money and Your Life website has help for managing debt and finances. This article has some great tips for keeping credit under control and making it work for you http://au.pfinance.yahoo.com/moneyand yourlife/managing-debt/article/-/8044026/expert-tips-for-cutting-credit-card-debt/.

    4. Be aware of excessive credit enquiries.
    You should only apply for credit if you feel you have a very good chance of being approved. Declined credit applications on your credit file can hinder your chances of obtaining a home loan. Likewise, you should only apply for credit you have full intention of pursuing. Every application is noted on your credit file, but not whether it was approved. If you go ‘credit shopping’ and apply for credit everywhere – the lender may consider you a bad risk due to those excessive credit enquiries showing up on your credit report.

    5. Educate yourself on ways your credit rating can be damaged
    It may not be simple overdue accounts which leave you with a bad credit file. People who have recently divorced or separated are particularly vulnerable to problems due to joint accounts. Also victims of identity theft can have a number of defaults on their credit file they are unaware of. Often times simple errors can occur which you aren’t aware of until you apply for credit and are flatly refused.

    6. Check your credit file regularly
    It’s important to check your credit file and understand what lenders may be seeing on your credit rating. Usually every 12 months should pick up any discrepancies that may need addressing.

    Under current legislation you can obtain your credit report for free from the major credit reporting agencies Veda Advantage, Dun & Bradstreet, and TASCOL (Tasmanian Collection Services). Your credit report will be sent to you within 10 working days.

    7. Fix credit rating
    If you do find credit rating defaults that you believe have errors, are unjust or you feel just shouldn’t be there – there is a good chance they can be removed. Many creditors will tell individuals that a default can never be removed, but can be marked as paid if it has been paid. This may not be enough to ensure credit is obtained with many lenders.

    You may be better off seeking the services of a reputable credit repair company than attempting to negotiate with creditors on your own to fix your credit rating. The credit repairer will negotiate on your behalf, working with creditors and understanding current legislation and how it applies to your credit file.
    Sometimes if individuals are unskilled in the current legislation they can do more harm than good when it comes to credit rating repairs.

    Visit the MyCRA Credit Repairs website www.mycra.com.au to get more information or help with your credit file or contact us tollfree 1300 667 218.

    Image: digitalart/ Freedigitalphotos.net