MyCRA Specialist Credit Repair Lawyers

Tag: credit rating

  • The credit card mistakes that increase your risk of bad credit history

    What are the mistakes you could make with your credit card that potentially increase your risk of bad credit history?  We look at the advice for credit cards that could save your credit rating.

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

    Savings Guide Australia featured a great article on the 7 Classic Credit Card Mistakes. It reports on info from MSN Money on the Seven Deadly Sins of Credit Card Use. They provide some useful information on the right way to think to avoid credit card mistakes that could hinder your credit report.

    Some really important points from this SavingsGuide.com.au article are:

    Don’t max out the credit card…

    “Consistently nudging your limit at the end of the month is a sign you should be reconsidering your usage and budgeting to allow more financial space for saving.”

    Be wary of unnecessarily high credit limits…

    “It doesn’t even matter whether or not your card is maxed out, when applying for a loan, your credit limit becomes important. If it’s high, it can undermine your approval opportunities.”

    Avoid Cash Advances…

    “The price is high; huge interest calculated from the day you borrow, making it very difficult to get on top of your credit card repayments. Avoid at all costs.”

    Here are some more ideas to prevent your credit card use from leading to a bad credit rating from my post on How to avoid bad credit history from credit card debt:

    Create your own credit limit.
    Set yourself a limit based on what you can comfortably afford to repay. It’s important to realise that you will pay at some point for the credit you use. Make sure at worst case scenario you can afford to repay it. You will then have confidence in your spending without the temptation to overspend.

    Don’t exceed the credit limit.
    This will just mean you incur hefty charges.

    Pay off the balance each month.
    Ideally, pay off the entire card balance within the interest free period. If you don’t, you will be charged interest right back to the date you purchased each item. You not only lose the interest-free period on those past purchases, but until you pay off the balance there will be no interest free period on anything you spend in the future.

    Or, choose a low interest card, but still pay more than the minimum repayment amount each month.
    If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate. It may not offer an interest free period, or hefty rewards points, but the lower interest rate should mean the carried over debt is more manageable for you, and will prevent possible bad credit history.

    If you want to see what is said about you on your credit report, you can do this for free every 12 months from Australia’s credit reporting agencies. For help with getting a copy of your yearly free credit report, you can contact MyCRA.

    We may also be able to help repair your bad credit history, or give you more information on your credit rating. Visit our website www.mycra.com.au or call MyCRA Credit Rating Repairs tollfree on 1300 667 218 for more details.

  • Are you at risk of identity theft?

    How much are you putting your life, your personal information and your credit file at risk of fraud? Test your awareness of identity theft, determine what you don’t know and take some steps to protect you and your family. This initiative is part of Privacy Awareness Week 2012, of which MyCRA Credit Rating Repairs is a partner.

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

    Last year, as part of Privacy Awareness Week, the Asia-Pacific Privacy Authorities developed an Id Theft Self-Assessment Test in which you are asked 11 questions on various topics. At the end, you will receive an assessment of how at risk you are of identity theft.

    Here’s some things you may not know about identity crime…

    Identity crime is an area which is ever-growing and ever-changing.

    It is reported that 1 in 6 people in Australia is a victim or knows someone who has been a victim of identity theft or fraud in the past 6 months.

    Victims are not always ‘gullible’ as may be the impression in the wider community. Many experts say it is not a matter of if you experience an identity theft attempt, but when.

    It can originate from someone you know – for example an acquaintance obtains identity documents or credit card details to impersonate you. Or more increasingly it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud.

    Fraudsters are after your personal information. The internet is a big source of personal information and its ever increasing use makes you more vulnerable to identity crime than ever.  This means identity crime can have very long arms – often it originates from overseas crime syndicates. Social networking, online banking, company databases and email scams can all be havens for today’s cyber- criminal.

    You can also fall victim to a number of rampant telephone scams, credit card skimming, or criminals can also take to going through your rubbish bin for anything they may be able to use to steal your identity.

    Identity theft is increasing because the pay-offs are huge for criminals. It is estimated identity crime costs Australians $1 billion a year (OECD Committee on Consumer Policy, Online Identity Theft, February 2009, p. 37).

    In cyber circles alone, world estimated costs for cybercrime are staggering.  Cyber-crime expert Mischa Glenny says that while there are no precise figures out there, the White House suggested in 2009 that cybercime and industrial espionage inflicts damage of around U.S. $1tn per year, which is almost 1.75% of GDP.

    “Traditional bank robbers must be absolutely gobsmacked when they hear sums like this being hoovered up by cyber- criminals week in, week out,” he says.

    How can I be affected?

    We consider if someone is alerted to having money stolen from credit cards early, or perhaps is able to call their bank and stop fraud in its tracks – that they are the lucky ones.

    The unlucky identity theft victim is unaware of the fraud until their identity is misused, and their credit rating with it. When identity theft damages your credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information about you to forge new identity documents.

    This gives the fraudster access to credit cards, loans, even mortgages which allows them to extract significant amounts of money without you realising it straight away.

    If credit accounts are not repaid – after 60 days you may be issued with written notification of non-payment and the intention for the creditor to list a default on your credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

    But often the credit file holder has also had their contact details changed – and this means it is not until they apply for credit in their own right and are refused that they find out about the identity fraud. This can be a significant time after the initial crime.

    Some signs to watch out for include:

    1. Strange unaccountable withdrawals on credit or personal bank accounts. It may not need to be a big amount to indicate fraud. Many criminals do ‘test’ amounts to begin with before extracting more significant amounts.
    2. Phone calls or emails from what often appear to be legitimate companies, asking for money or personal details. If you have given bank details or personal information in this way either online or on the phone there is a high chance it was a scam. Verify with the company in question.
    3. Can’t log in to social networking or bank accounts.
    4. Credit refusal
    5. Bills or letters of demand sent to you for accounts you don’t know about
    6. Missing mail – particularly credit card statements which could indicate someone has overtaken your accounts. In this case no news is not good news.

    What can I do if I suspect I am a victim of identity theft?

    Notify Police immediately. Many people do nothing due to embarrassment, or because they don’t believe the fraud was significant enough. But is only through this crime getting reported that statistics get collated, and we start to have any chance of catching the criminals.

    Notify creditors. You may need to cancel credit accounts.

    Obtain a credit report. This report is free once per year for every Australian who holds a credit file. It will indicate to you whether any of your contact details have changed, or whether there have been credit enquiries on your account. If you act quickly enough, you may be able to stop your credit rating from being affected by black marks which would come from fraudsters obtaining credit in your name.

    Notify credit reporting agencies of the possible fraud. They will be able to put an alert on your credit file.

    Police may assist you in obtaining a Victims of Commonwealth Identity Crime certificate, if they believe you are eligible. You can apply to a magistrate in your State for this certificate, which may help in recovering your credit rating or credit accounts. Victims need to have had a Commonwealth Indictable Offence committed against them. For more information, visit the Attorney-General’s website www.ag.gov.au.

    What steps can I take to prevent identity theft?

    1.Keep virus software up to date on your computer. Install automatic updates and perform regular virus scans.
    2.Keep your privacy settings secure on all social networking sites.
    3.Keep our passwords and PIN numbers secure. Don’t carry PIN numbers with your credit/debit cards, change passwords regularly and use a variety of passwords for different purposes.
    4.Check all your credit card and bank statements each time they come in.
    5.Cross-shred all personally identifiable information which you no longer need.
    6.Buy a safe for your personal information at home.
    7.Do not give any personal information or credit card details to anyone via phone or email unless you are sure the site is secure, and or you can verify the company details.
    8.Be aware of who gets our personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site you are registering on to have your date of birth?
    9.Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website. For a list of ways your computer can put you at risk, visit the governments Stay Smart Online website www.staysmartonline.gov.au.
    10.Check your credit file.

    If you or someone you know needs help to remove bad credit history on their credit rating following identity theft, contact MyCRA Credit Repairs, www.mycra.com.au or call tollfree on 1300 667 218 for confidential advice and help restoring your good name.

    Image above: Chris Sharp/ FreeDigitalPhotos.net

    MyCRA Credit Rating Repairs is proud to be a partner for Privacy Awareness Week 2012.

  • Privacy Commissioner reports data breaches on the rise

    As part of Privacy Awareness Week 2012, over 180 business leaders met in Sydney this week to discuss the topic of data breaches. Data breaches can occur through lost or stolen laptops, portable storage devices and paper records, or through databases being ‘hacked’ into or organisations mistakenly providing information to the wrong person. The effects of data breaches can be theft of identity and potentially credit fraud leading to bad credit history for the victim. The Privacy Commissioner claims there is in effect one data breach a week in Australia – an increase of 27 per cent from last year.

    This is an excerpt from Privacy Commissioner Timothy Pilgrims statement to the media on Monday on data breaches in Australia:

    “The Office of the Australian Information Commissioner (OAIC) was notified of 56 data breaches in the last financial year, equivalent to a data breach a week. This is up from 44 in the previous year, an increase of 27 per cent,” Mr Pilgrim said.

    However, the Privacy Commissioner also noted that he opened a further 59 investigations into other breaches where he wasn’t notified of the incident.

    “Serious harm can befall people when the security of their personal information is compromised”, Mr Pilgrim said. “It is our view that whenever there is a real risk of serious harm, affected individuals should be notified.”

    …Data breach notification is not a mandatory obligation applying generally to government and business in Australia. However, there is increased pressure on the Government to introduce laws to make it a general legal requirement as it is elsewhere — data breach notification is already a mandatory requirement in Europe, the UK and the United States….

    The Privacy Commissioner warned that in some circumstances, it may be a breach of the Privacy Act not to notify as organisations covered by the Privacy Act must take reasonable steps to protect the information they hold.

    For businesses who would like a reference for guidelines on handling personal information security breaches, the OAIC has released this document:

    Data breach notification: A guide to handling personal information security breaches. It outlines four steps to consider when responding to a breach or suspected breach and also outlines preventative measures that should be taken as part of a comprehensive information security plan.

    Personal information has become a valuable commodity used to commit identity fraud and potentially ruin the victim’s financial future.

    We can’t take lightly the possibility that any company that keeps data on its customers could be exposed to data breaches. Identity theft is becoming more prevalent, and personal information is lucrative for fraudsters.

    Personal information in the wrong hands can lead not only to identity fraud, but the misuse of the victim’s credit file, which can have significant long term consequences.

    Data breaches are difficult for individuals to have any control over, and the only way people can ensure their details are safe are to demand that the companies they deal with have strong IT systems before disclosing that information.

    The Australian Crime Commission’s Identity Crime report advises consumers on ways they can protect their personal information. They advise all individuals to obtain a copy of their credit report annually in order to keep abreast with any changes to their credit file which may point to identity theft.

    This could detect suspicious entries such as new credit enquiries or changes in contact details which would point to an identity theft attempt, allowing steps to be taken before the fraud affects the person’s good credit rating.

    If a person may be vulnerable to identity theft through a data breach, they should check their credit file immediately, and also contact Police who will advise them on the best course of action to take to restore their accounts and potentially their good name. This could include applying for a Victims of Commonwealth Identity Crime Certificate – which covers particular Commonwealth Identity Crime and can aid in recovery.

    If people need help to prepare a case to creditors for default removal following identity theft, it may help to contact a reputable credit repair company.

    Image above: David Castillo Dominici/ FreeDigitalPhotos.net

    MyCRA Credit Rating Repairs is proud to be a partner for Privacy Awareness Week 2012.

  • How to fix a bad credit rating – in Australia

    How do you fix a bad credit rating? Well it depends on where you live. In Australia it can be difficult, but not impossible. Australians are best to follow advice from our own shores. Here’s some information on credit reporting in Australia and 5 ways you can improve your chances of obtaining credit.

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

    Google ‘fix bad credit rating’ and the list of articles on improving your credit score can be a mile long with countless advice on bad credit solutions and suggestions to fix what the banks see as bad credit history. People are looking for a way to overturn or ‘counteract’ a bad credit listing and get the best chance of approval for home loans, personal loans or any forms of credit.

    What many don’t realise is that many articles from the U.S. and U.K. are not relevant on Australian shores. These countries have ‘positive’ credit reporting systems – very different from Australia’s. So the information, whilst good, often doesn’t apply for people in this country.

    In fact, many times if Australians follow that information they may actually be hindering their chances of obtaining credit in the current market, not helping it.

    So here is some information for people concerned about their credit rating, to have as a reference for what applies in this country for our unique credit reporting system.

    What exactly is my credit file?

    A credit file is made for every person who is credit active in Australia. The credit reporting agencies currently providing credit reports are Veda Advantage, Dun & Bradstreet, and Tasmanian Collection Service (if Tasmanian). There is also a new entrant Experian, but they are currently only collecting data.

    A person’s credit file contains their personal information. It also records any credit applications, all loans which are current and also records any adverse listings such as Defaults, Writs, Judgments, Clear-outs or Bankruptcies* which are issued under that person’s name.

    It is from this file that creditors make a decision whether or not to lend people money. This information is then available to banks and building societies; finance companies, utility providers, mobile phone companies and retail stores. These companies are all known as credit providers or creditors.

    Any creditor may place an adverse listing on a person’s credit file if an account has been in arrears for more than 60 days. This includes phone companies, utility companies, and gyms as well as banks, finance companies and retail stores – and the outstanding amount can be for as little as $100. These listings are current for between 5 and 7 years depending on the listing, and ‘drop off’ the credit file after this time.

    A negative credit reporting system

    Currently Australian credit reporting operates under a ‘negative’ system. This will change as Australia moves towards comprehensive credit reporting, but until then – the rules of the game are very different from many other countries.

    Only negative data is recorded on a person’s credit file. From this point of view – there is nothing people can do to counter-balance any negative data which is displayed on their credit file. It is either present – or not.

    So is there anything I can do to change my bad credit rating?

    The best thing you can do for your current and future credit rating is to make all of your repayments on time.

    You can’t remove negative listings from your credit file unless you dispute the listing. You also can’t counteract the effect of those listings with ‘positive’ credit information yet either.

    But there are a few other things you can do to improve how you appear to lenders potentially improving your chances of obtaining credit in Australia. Here are 5:

    1. Reduce credit limits.
    Lofty credit limits do not improve a person’s credit ‘risk’ assessment. If the loan applicant has a credit limit of say $20,000 on their credit card, the debt amount on that card will be calculated on $20,000 – even if the actual amount the applicant has owing on that card is only $5,000. So a potential borrower should seek to reduce any credit limits on cards or loans they currently hold.

    2. Reduce credit enquiries.
    Do not shop around for credit. Whenever a person other than the credit file holder makes an enquiry on their credit record – that enquiry is recorded on the person’s credit file. Currently there is no way of seeing on someone’s credit report if the loan was approved or not, only that the application was made. Some lenders are refusing home loan applications due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    3. Check credit file regularly.
    Anyone has the right to request a copy of their credit file, to see what is being said about them. This report is free for the credit file holder every 12 months. The request should be made to all the applicable credit reporting agencies, and a report will be made to the credit file holder within 10 working days.

    There is the potential for creditors to make mistakes when entering listings on credit files. So anyone who is credit active should check theirs, regardless of how diligent they think they may have been with their repayments.

    Many times people are unaware they have adverse listings on their file until they apply for credit and are refused. Unfortunately at that time it can be stressful, and they can lose the home or business they are trying to buy, or be forced to choose a different loan with a higher interest rate to accommodate their bad credit history.

    4. Pay any outstanding amounts.
    Currently even defaults which have been marked as paid may see you refused credit – but it can’t hurt to pay an overdue account if it should have been paid. Whilst the creditor cannot remove the listing, they can mark the listing as paid. Some lenders may overlook a default listing if other parts of the application present as low risk.

    5. Remove errors from your credit file.
    Adverse listings can sometimes occur due to identity theft; some people 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 errors with creditor computer systems, and sometimes human error.

    You have the right to have any inconsistencies on your credit file rectified. People should bear in mind that listings are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    Credit reporting is governed by strict legislation of which most consumers have limited knowledge of, and often very little time to get to know.

    Many seek out the help of a reputable credit repairer who will be able to work on their behalf to assess their suitability for credit repair and then formulate a case based on legislation for removal – negotiating with creditors to have the default or other listing removed.

    People can visit the MyCRA Credit Repairs website for more help with their credit rating, and help to repair a bad credit rating.

    *Bankruptcies cannot be removed from credit files.

    Image: Stuart Miles / FreeDigitalPhotos.net

  • TMI – 5 things all young people should know about privacy, social networking and credit.

    If you didn’t have Facebook or Twitter – you’d be lost right? It’s a great way to keep in touch with friends– and sometimes it’s more convenient and quicker than a phone call. But if you don’t keep your personal information secure from outsiders while you use it– you could be keeping in touch with all the wrong people. There’s weirdos out there trolling the internet looking for the stuff you openly post – even people looking to commit identity theft with your info. We show you how the mistakes you make with your privacy now could lead to being unable to get a phone, a home, a car in the future because of a surprise bad credit rating.

    This information was put together for Privacy Awareness Week 29 April to 5 May 2012 and is all about promoting awareness of privacy rights and responsibilities in the community. The theme this year is “How to Protect Personal Information While Engaging With Social Media”  with a focus on secondary school students, parents and teachers. If you are not a student but you know one, 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.

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

    1. Fraudsters are looking for your personal information.

    They are looking to take it and use it for purposes of constructing a fake identity. Identity theft victims are not always ‘gullible’ as people might imagine. They are ordinary people. Many experts say it is not a matter of if you experience an identity theft attempt, but when. It is estimated one in six Australians may have been a victim or know someone who is a victim of identity theft.

    It can happen to you when someone you know obtains identity documents or credit card details to impersonate you. Or more and more it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud.

    The internet is a big source of personal information and its ever increasing use makes you more at risk of identity crime than ever.  This means identity crime can have very long arms – often it originates from overseas crime syndicates.  Identity theft is increasing because the pay-offs are huge for criminals. It is estimated identity crime costs Australians $1 billion a year.

    2. Criminals are after information they can use to steal your identity.

    Criminals are looking for anything they can use to piece together enough information in order to construct a fake identity. Much of the information people post on Facebook or other Social Networking sites can be very good building blocks for identity thieves. They are taking snippets here and there and building a profile on people. They may know your name and they may also know where you live, or where you go to school, your pet’s names, your birthday, even your other family name which could be identified as your mother’s maiden name.

    All this is very handy information that is not only used to identify you, but may be used in passwords. After a little while, they have enough information to go about asking for replacement copies of driver’s licences, photo identification – whatever type of identification they have suitable information for. Then they can attempt to take out credit in your name. Some people have even had houses purchased in their names. Often it’s not until you go and take out credit and the bank says: “NO WAY look at all these defaults against your name!” that you may realise you have been struck by identity theft. 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.

    3. These Privacy risks apply even if you’re under 18

    You might ask – what’s the point of worrying about privacy if you are underage – without a credit rating – there is no danger of identity theft right? Well think again! The fact is – crooks are pretty clever. The information you post today, could come back to haunt you in a big way. There are reports of crooks scanning social networking sites purposely looking for young people for this reason, because they usually have the most open privacy settings. That information is not used right away, but is ‘warehoused’ until the young people turn 18. They can then go on a ‘spending spree’ with the young person’s fake identity and credit. Imagine that, you turn up to buy your first car, and lo and behold you have a mountain of defaults against your name and no idea how it happened.

    Besides all this, if you have enough information on your Social Networking right now about your parents you could be putting their credit rating in jeopardy as well.

    4. The effects of a bad credit rating from identity theft

    Negative listings stay on a person’s credit file for 5 to 7 years, depending on the listing. During the time your credit file is affected most lenders and other credit facilities will refuse you credit. Unless you are able to prove it wasn’t you who took out the credit, you may be stuck with a bad credit rating until you are at least 23 if not 25. You can’t borrow to travel, purchase a home, or even take out a credit card or a mobile phone plan while you credit file has these defaults.

    5. What you should do to make sure fraudsters don’t obtain your personal information

    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.

    Here is some information that Stay Smart Online has provided to help young people in Australia today take steps to use social networking safely:

    • set your online profile to private and be discerning about who you accept as your ‘friend’
    • protect your accounts with strong passwords
    • have a different password for each social networking site so that if one password is stolen, not all of your accounts will be at risk
    • think before you post – expect that people other than your friends can see the information you post online
    • don’t post information that would make you or your family vulnerable – such as your date of birth, address, information about your daily routine, holiday plans, or your children’s schools
    • don’t post photos of you or your family and friends that may be inappropriate – or that your family and friends haven’t agreed to being posted
    • never click on suspicious links – even if they are from your friends – they may have inadvertently sent them to you
    • be wary of strangers – people are not always who they say they are. It’s a good idea to limit the number of people you accept as friends
    • always type your social networking website address into your browser or use a bookmark.
    • If you suspect any fraudulent use of your identity you should report it to your social networking service provider and your local police.

    MyCRA Credit Rating Repairs is proud to be a Partner for Privacy Awareness Week 2012. For more youth resources visit the PAW Website http://www.privacyawarenessweek.org/youth.html.

     

    Image of boy: David Castillo Dominici/ FreeDigitalPhotos.net

  • MyCRA Partners Privacy Awareness Week 2012

    MyCRA Credit Rating Repairs is proud to be a Privacy Awareness Week (PAW) Partner for 2012 which runs 29 April to 5 May.  The team at MyCRA hope we can help educate more people on Privacy Issues this week and in doing so reduce the numbers of identity theft cases in Australia. Privacy of your personal information is crucial to prevent identity theft and subsequent credit fraud. This week, through information provided by the Office of the Australian Information Commissioner (OAIC) and also through our own information, we want to help clarify how Privacy (or lack of it) can affect your credit file and promote safety of your valuable personal information.

    This post features a newsletter titled “Privacy It’s All About You” provided by the OAIC which will clarify the origins of PAW and the importance of Privacy in your business, your life and for maintaining your good credit history. Please find full newsletter below:

    Privacy: it’s all about you

    Privacy Awareness Week (29 April – 5 May) is an annual event during which the Asia Pacific Privacy Authorities join forces to remind everyone to take steps to protect their own privacy and safeguard personal information about others that they might hold.

    “Privacy is recognised in many countries, including Australia, as a human right,” says Privacy Commissioner Timothy Pilgrim. “Serious consequences can arise when someone’s privacy is breached and we all have responsibilities to look after the personal information we handle.”

    Organisations and government agencies covered by the Privacy Act must meet responsibilities when collecting, using and disclosing personal information. This includes giving sufficient notice about why personal information is being collected and how it will be used and disclosed.

    Businesses covered by the Privacy Act are subject to ten National Privacy Principles or NPPs while most Australian, ACT and Norfolk Island government agencies must comply with eleven Information Privacy Principles or IPPs.

    Quick privacy tips for business and government agencies:

    • Don’t collect personal information that is unnecessary for your business
    • If you do need to collect people’s personal information, tell them why you are doing this, what the information will be used    for and how long it will be kept
    • Make it clear who will have access to that personal information, including any third parties
    • Take steps to destroy or de-identify personal information that is no longer required, subject to other record keeping    requirements.

    What about you?

    When it comes to protecting your own information, Mr Pilgrim is urging all Australians to be increasingly more vigilant about protecting their information.

    “You really need to pay attention to what information you are sharing and how it may be used, particularly online and when using smartphones, where personal information is routinely collected and stored by any number of entities.”

    Mr Pilgrim says people tend not to think about what information they are giving away or what will happen to it, especially as they make quick transactions online.

    Know what’s going on

    When your online search history is aggregated with other information you may have shared online, a detailed picture emerges that could compromise your privacy.

    Most search engines today track and store details about your browsing habits to help guide you to the information you are seeking. But Mr Pilgrim says that many of us remain unaware of how this happens or where our information may end up.

    “Find out how your information is being used by checking the privacy policy of the search engines you use.  If you want more control, look for options that allow you to prevent aggregation and keep information you post across various accounts separate.”

    Different search engines operate in different ways.  So if you are unhappy with the way your information is being used by one provider, consider using another.

    “I’d encourage people to always use the provider that offers them most control about how their personal information is used,” Mr Pilgrim added.

    Similar issues apply to apps: when you download them, you usually agree to your personal information being collected in some way.

    “Next time you decide to download an app, take a moment to look at the terms and conditions that set out what you are signing up for, what type of information the app developer is collecting and how it will be used.”

    While these kinds of details can be buried in the fine print, Mr Pilgrim says it’s worth making the effort to know and understand what you are agreeing to so your information is not used in unexpected ways.

    “Just as in the real world, if you want to safeguard your privacy, you need to pay attention to what information you are handing over and ask companies what they are doing with it.”

    Find out more at www.privacyawarenessweek.org/oaic

    Stay tuned for more information on Privacy, your personal information and your credit file.

    If you think you may be a victim of identity theft, firstly contact Police who will assist you.

    If identity theft has affected your credit file (credit fraud) and you need help with removing negative listings such as defaults and clearouts which should not be there, it might be helpful to contact a credit rating repairer to go through your options for credit rating repair.

    Graham Doessel, Founder and CEO of My CRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    Image: suphakit73 / FreeDigitalPhotos.net

  • Credit reporting accuracy advocate throws credit rating repair fee structure under the spotlight

    Media Release

    Consumer advocate for credit reporting accuracy throws credit rating repair fee structure under the spotlight.

    26 April 2012

    A consumer advocate for accurate credit reporting says the fee structure for the credit rating repair industry must be investigated with a view to creating some best-practice reforms in the interests of consumers.

    Graham Doessel, foundation member of an industry body in the early stages of development, the Credit Rating Repair Industry Association of Australasia (CRIAA) and CEO of credit rating repair company MyCRA, says the industry is ripe for criticism for confusing consumers due to the vast differences in fee structure across credit rating repair companies and lack of clear guidelines for advertisement and configuration of customer payments.

    “Where the credit rating repair industry falls down, is that there are some inconsistencies in the way companies are delivering and advertising their services – some are not advertising their fees, some are charging way too much and delivering too little – and this creates mistrust across the board and tarnishes the reputation of what is actually a necessary service,” he explains.

    This mistrust was apparent in 2010 from credit reporting agency Dun & Bradstreet, who advised consumers in a media release to be wary of third party promises to remove negative listings from credit reports.

    “Dun & Bradstreet urges consumers to think carefully about these services arguing that not only are the third party fees unnecessary but promises to remove adverse events are often unfulfilled. Instead consumers should contact regulated credit reporting agencies directly to obtain a copy of their report and if they believe it contains any errors they can discuss that with the agency at no charge. If consumers do feel they need third party advice they should seek assistance from an independent financial counsellor or advisor,” Dun & Bradstreet advised (1).

    Mr Doessel says a good credit rating repairer is not only valid, but crucial to getting errors removed from consumer credit files.

    “Consumers are just not getting creditors to remove inconsistencies on their own. Yes, you can contact creditors and credit reporting agencies yourself and get credit file inaccuracies addressed – but it is a bit like defending yourself in Court. There’s just too much time involved in investigation, knowledge of legislation and negotiation ability required to make a successful case yourself,” he explains.

    He believes the implementation of the CRIAA as an industry body to help regulate codes of conduct for its members such as fee structure should give consumers and all associated entities the chance at being able to select a credit rating repairer whatever the customer business payment model and have faith that they will do the right thing by the consumer.

    “It’s about creating a level playing field for consumers – making it fair, and reasonable and giving them a system of redress from within the industry for any dodgy practices,” he says.

    Mr Doessel has published a White Paper titled Credit Rating Repair Customer Costs – A Tale of Two Business Models, which examines fee structure within the credit rating repair industry and sets out some recommendations for improvement on both models (2).

    One of the main points uncovered in the paper is the lack of clear advertisement of all fees and charges and definition of terms and conditions of payment across the board from credit rating repairers.

    “For instance, some no win – no fee customer business models can be vague in their advertising of both when payments are due, and exactly what defines a ‘win’. Also, some customers could be left angry when they find out they are charged administration costs regardless of success when it is not stated clearly these will be charged prior to the engagement of business,” he says.

    He hopes opening up for discussion customer business payment models in the credit rating repair industry will be the starting point for all relevant groups both in and out of the industry to provide their opinion on a best practice structure for customer fees.

    “Both the CRIAA and myself hope that by bringing credit rating repair customer costs into focus from all arenas we can come up with a framework which is successful and fair and which we can carry forward as the first stone which cements the entire industry and takes credit rating repair to new heights of credibility,” Mr Doessel says.

    /ENDS.

    Please contact:

    Graham Doessel – Founder CRIAA and CEO MyCRA         PH 3124 7133

    Lisa Brewster – Media Relations  MyCRA    Mob: 0450 554 007  media@mycra.com.au

    http://www.mycra.com.au/ www.mycra.com.au.blog

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

    (1) http://www.dnbcreditreport.com.au/latest_news/consumers_should_be_wary_of_misleading_credit_report_offers/indexdl_6144.aspx

    (2) http://grahamdoessel.com/wp/credit-rating-repair-customer-costs-a-tale-of-two-business-models/

  • Social Networking And Your Credit File: 5 Protection Tips

    Media Release

    5 Things You Need To Know About Social Networking to Protect Your Credit File

    27 April 2012

    A consumer advocate for accurate credit reporting is warning consumers ahead of Privacy Awareness Week (PAW) about the dangers for their credit file if they fell victim to identity theft through lax social networking settings.

    Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and Partner for PAW says identity theft threats from people posting too much personal information on sites like Facebook and Twitter are rampant.

    “Fraudsters are out there looking for your personal information. They are building a profile, and one day if they have enough information you may be unfortunate enough to have credit taken out in your name. If this happens you could not only lose a lot of money, but your credit file is likely to be riddled with negative listings you have no knowledge of,” he says.

    Privacy Awareness Week runs from 29th April to 5th May. The theme of the week is “How to Protect Personal Information While Engaging with Social Media”. MyCRA Credit Rating Repairs is proud to be a Partner to this event. (1)

    Mr Doessel explains 5 important things to know about Social Networking to protect your good credit rating:

    1. Fraudsters are looking for your personal information.

    Identity theft victims are not always ‘gullible’. Identity theft attempts occur every day. Many experts say it is not a matter of if you experience an identity theft attempt, but when. It is estimated one in six Australians may have been a victim or know someone who is a victim of identity theft. (2)

    Increasingly the crime originates from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud. The internet is a big source of personal information and it means identity crime can have very long arms – often it originates from overseas crime syndicates who are scouting for information on sites like Facebook.

    Identity theft is increasing because the pay-offs are huge for criminals. It is estimated identity crime costs Australians $1 billion a year. (3)

    2. They are looking for information that they can build an identity on.

    Much of the information people post on Facebook or other Social Networking sites can be very good building blocks for identity thieves. They are taking snippets here and there and building a profile on people.

    They may know your name and they may also know where you live, where you went to school, your pet’s names, your birthday, even your other family name which could be identified as your mother’s maiden name. With features like ‘check-in’s’, they also know where you are most of the time, which could also come in handy for criminals – especially if they already know where you live.

    All this information crooks extract from Social Network sites may be used in passwords or used as identifying information. After a little while, they could have enough information to go about asking for replacement copies of driver’s licences, photo identification – whatever type of identification they have suitable information for.

    Then fraudsters can attempt to apply for credit in your name. Some people have even had houses purchased in their name. Often the fraud can go undetected until you apply for credit in your own right and you are refused because a credit check reveals a long list of strange default listings.

    3. Criminals don’t care how old the user is.

    Even teenagers are not immune to having their personal information stolen. Data on young people may be ‘warehoused’ until the victim turns 18. There are reports of crooks scrolling through thousands of social networking pages purposely looking for young people for this reason, because they usually have the most open privacy settings. That information is not used right away, but is stored until the young people turn 18. They can then go on a ‘spending spree’ with the young person’s fake identity and credit.

    Superintendant Brian Hay from the Queensland Fraud Squad told Channel 7’s Sunrise Program in October last year, that criminals were targeting the personal information of our young Facebook users. (4)

    “We know that the crooks have been data warehousing identity information, we know that they’ve been building search engines to profile and build identities,” he told Sunrise.

    “We need to tell our children if you surrender your soul, if you surrender your identity to the internet it could come back to bite you in a very savage way years down the track,” he says.
    4. If criminals take out credit in your name, they won’t be so kind as to make repayments for you.

    When credit goes unpaid past 60 days, the creditor issues a ‘default’ or ‘clearout’ listing on your credit file. This listing will remain on your credit file as record for 5 years for a default and 7 years for a clearout.

    Any negative listing can mean people are refused a home loan, a car loan or any type of credit and it doesn’t have to big amounts to make a big impact. Even listings with amounts of $300 can stop someone from getting a loan. So even if there was only one instance of identity theft, your credit rating is ruined for up to seven years.

    Unfortunately there is a hard road in recovering your good name. If the listing shouldn’t be there – it is still up to you as the consumer to prove you didn’t initiate the credit and this can be difficult – often people have no idea how someone got their personal information in the first place.

    5. Bump up your privacy NOW on Social Networking sites to make sure no one obtains your personal information.

    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. Here is some information that the Government has issued via their Stay Smart Online website to help people take steps to use social networking safely (5) :

    Top tips

    ·         Always type your social networking website address into your browser.

    ·         Never use the same password that you use for your bank or email accounts. Have a different password for each social networking site so that if one password is stolen, not all of your accounts will be at risk.

    ·         Don’t automatically click on links in ‘friend request’ emails you receive. Genuine friend requests will appear on your home page on your social networking site.

    ·         Be careful about how much personal information you post online. Use privacy settings to control who has access to your information.

    ·         Be careful about the amount of information that you reveal to people you don’t know. It is easy to create a fake profile online and people are not always who they say they are.

    ·         Stop and think before you write a message or post pictures. Ask yourself if the information you are sharing is something you want your future employers, friends or family to see. Even items you delete can remain on the Internet for years.

    If people find out their credit rating has been damaged through identity theft, Mr Doessel says the first step is to contact Police, and the second step is to ask Police if they are eligible for a Victims of Commonwealth Identity Crime Certificate – which is available from their local Magistrate’s Court. (6)

    “Identity theft recovery can be a lot of work – but if people have their credit rating damaged it’s a point worth fighting for. If people have neither the time nor the skill to prepare their own case for listing removal, they can always contact a reputable credit rating repairer to help,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA       (07) 3124 7133

    Lisa Brewster – Media Relations  MyCRA    Mob: 0450 554 007 media@mycra.com.au
    http://www.mycra.com.au/ www.mycra.com.au.blog

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

    (1) http://www.privacyawarenessweek.org/oaic/2012_partners.html
    (2) http://www.attorneygeneral.gov.au/www/ministers/mcclelland.nsf/Page/MediaReleases_2011_ThirdQuarter_3July2011-Newresearchshowsidentitytheftaffectsoneinsixpeople
    (3) OECD Committee on Consumer Policy, Online Identity Theft, February 2009, p. 37
    (4) http://au.tv.yahoo.com/sunrise/video/-/watch/26825601/child-identity-theft/
    (5) http://www.staysmartonline.gov.au/home_internet_users/protect_yourself2/safe_social_networking (6) http://www.ag.gov.au/www/agd/agd.nsf/Page/Crimeprevention_CertificatesforVictimsofCommonwealthIdentityCrime?open&query=victims

  • A consumer advocate shows Aussie singles how to recover from post-relationship credit crisis.

    Being lumbered with relationship debt is a common cause of bad credit. People can be stuck to a bad relationship long after the people in question have got out and moved on. A bad credit rating, or credit rating defaults, can hinder a person’s ability to obtain new credit for between 5 and 7 years, so it is important to cover yourself and your credit rating against an STD (Sexually Transmitted Debt).

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

    Recently I read a fantastic article in Brisbane’s Courier Mail on How to Fix Relationship Debt. The perspective was provided from Generations Columnists Gen Y’s Justine Davies, Gen X’s Bruce Brammal, Baby Boomer Mark Bouris and Retiree Kerrin Falconer.

    I would advise people to read the article and apply the principles for their generation.

    Here is a great point I found in this article:

    “A FEW years ago, Paul Clitheroe told me that he wanted money to be the sex of the next generation.

    He explained that when he was young, sex was a taboo topic whereas now it’s talked about everywhere. He hoped that Gen Y would do the same thing for money: bring it into the mainstream.

    The best place to start making that conversational change is with your partner, because according to Relationships Australia, conflict over money is one of the top causes of arguments and relationship breakdowns in Australia,” Justine Davies says.

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

    But it is important to think practically about joint finances.

    Many people come unstuck by not asking the tough financial questions about their prospective partners early in the relationship.

    And when they fail to, when love turns sour they can end up broken hearted and broke.

    Black marks on your credit rating – the ‘STD’ that is hard to get rid of.

    When two different money ‘personalities’ combine, the potential for both to be financially damaged is greatly increased.

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

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

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

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

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

    For Valentine’s Day this year, I wrote a post titled ‘Valentines Day Blues. What You Need To Know About Your Credit Rating When Love Goes Bad.’

    Here are my 10 Steps for financial separation to protect your credit rating from that post:

    10 Steps for financial separation

    1. Cancel joint bank accounts. You could use the money from these accounts to go towards paying off any debts you may have together.

    2. Pay off and cancel joint credit cards. If the debt on the card/s can’t be paid off, inform the creditor that you have separated and ask them to put a stop on the account so there may be no more transactions. They could possibly make arrangements to transfer the repayments to two separate accounts.

    3. Resolve the mortgage debt. Sell the home and divide the proceedings, or sell your share of the home to your ex-spouse or vice-versa. Before this takes place, notify the bank you have separated. Make sure no further amount can be redrawn on the loan and that you receive separate statements whilst you are separated and both still own the property.

    4. Transfer names on other accounts. Phones, electricity accounts, rental properties, rates, car loans and store credit should all be transferred to one name as appropriate.

    5. Pay any unpaid accounts. No matter who has accrued these debts, the creditors will still see you as responsible. Ensure all accounts are paid on time while they are in both names.

    6. Keep a record of all undertakings. Keep good paperwork and notes related to the separation, including cancellation or changes to any accounts for future reference.

    7. Employ a good family solicitor. Legal advice is important as it relates to children, family businesses and property. Also if anything runs off course with division of debt, they can give good advice on the next course of action.

    8. Notify credit reporting agencies. Let Veda Advantage, Dun & Bradstreet, or Tasmanian Collection Agency know of your separation and any steps you have taken to separate accounts to date.

    9. Check your credit score. Request a copy of your credit report and check each entry. A free copy of your credit file is available every 12 months from one or more of the credit reporting agencies in Australia. This is essential particularly if settlement is drawn out over a number of years.

    10. Seek help from a professional credit repairer for any defaults, Writs or Judgments. Once outstanding accounts accrued by your spouse are paid, there is the issue of the bad credit score which needs to be cleared so you may have the opportunity to borrow again in the future.

    Gen X’s Bruce Bammal describes the steps people can take if they find themselves in a post-relationship debt crisis:

    “If an ex has done the dirty on you financially, urgently get hold of your credit file to see exactly what damage has been done. They’re free through Dun & Bradstreet (dnbcreditreport.com.au) and Veda Advantage (mycreditfile.com.au).

    Assess the damage and start repair jobs, if possible, by contacting the organisations directly. Then follow up with the credit reporting services.

    Cancel joint accounts and credit cards. End all financial ties. See a specialist about recovering from sexually transmitted debt,” he says.

    The repair jobs Bruce talks about on a person’s credit rating could be small or could be significant. But if the bad credit rating really shouldn’t be there, if the listing contains errors or inconsistencies, then the negative effect on the person’s finances should warrant attempting to have the bad credit history removed.

    Current legislation does allow people to have inconsistencies removed from their credit file, but the whole process is more complicated than most people are led to believe.

    Credit reporting is governed by strict laws that the creditor must abide by, and there is no point people going in to bat for themselves without an extensive knowledge of this credit reporting legislation and a good ability to negotiate with creditors.

    In reality many people are not successful when they attempt to fix bad credit themselves. Remember, often it is a large creditor which put the listing there in the first place, so people need to know what to say to these companies and the way to say it. They also need to be thoroughly schooled in the legislation (or have enough time to get to know it), to ensure a successful credit repair. Basically people are preparing a ‘case’ to show reason as to why the creditor should remove the listing.

    In the preparation of this case and presentation to the creditor there are many instances where individuals can write, do or say the wrong thing, which can not only mean they get the creditor ‘offside’ but can damage the chances of having the listing removed for the entire term of the listing. So for the best chance at success, consult a reputable credit repair company. Visit our main website at www.mycra.com.au or call tollfree 1300 667 218.

    Image: graur codrin/FreeDigitalPhotos.net

  • Graham the ‘Credit Corrector’ placed No.24 in Top 50 – Start-Up Smart Awards 2012

    Entrepreneur Graham Doessel is delighted to announce placement at number 24 in the Australian Start-Up Smart Awards 2012 for his credit rating repair company, MyCRA Credit Rating Repairs.

    Graham was once Australia’s most successful non-conforming broker. Now he’s a full-time ‘credit corrector’ and consumer advocate challenging creditors to improve accuracy in credit reporting – one listing at a time.

    An excerpt from the Start-Up Smart Awards website explains the beginnings of MyCRA Credit Rating Repairs:

    “At the busiest time in his career, Graham Doessel was diagnosed with cancer. Up to his ears in work, he was forced to step back from it all in order to make a full recovery.

    While Doessel was receiving treatment, he witnessed the negative impact of the global financial crisis on credit applicants. In the wake of it all, Doessel decided to do something.

    He developed My CRA for the sole purpose of giving customers the cleanest credit file possible.

    The idea behind the service is to give customers the best chance of getting approval, secure a lower interest rate or reduce the upfront fees that can be associated with obtaining credit.

    Doessel’s life experience, as both a broker and as a consumer at the wrong end of consumer credit reporting, drove him to create MyCRA Credit Rating Repairs from the ground up.

    After extensive study of Australian credit reporting legislation, he was able to come up with a framework to correct credit rating errors.

    It was now possible to work on behalf of a client and actually repair their credit rating, instructing creditors to remove negative listings where they were listed incorrectly or unfairly.

    That’s how MyCRA Credit Rating Repairs was born.

    According to Doessel, the most challenging part of starting up was getting leads and contacts, but this forced him to be creative and resourceful, particularly on a tiny budget.

    “There is a massive demand for what we do at MyCRA. The barrier to entry is very high but MyCRA overcame all of those challenges on limited to no budget,” he says.

    Doessel says the best part of starting his own business is “doing something that can make a tremendous difference to the lives of so many people, and getting paid to do it”.

    He is now an active executive member of the Credit Repair Industry of Australasia and has interests in a direct debit service firm,” the website reports.

    The recognition from the Start-Up Smart Awards has been significant, with Start-Up Smart also placing MyCRA Credit Rating Repairs amongst the Top Ten new trends for 2012 in the finance category.

    “As the banks toughen their lending criteria, the finance industry is witnessing the emergence of a new type of business – one that aims to make it easier for consumers to obtain credit and finance.

    My CRA, which appears at number 24, was developed for the sole purpose of giving customers the cleanest credit file possible.

    The idea behind the service is to give customers the best chance of getting approval, secure a lower interest rate or reduce the upfront fees that can be associated with obtaining credit,” Michelle Hammond reports in the article 10 trends from the 2012 StartupSmart Top 50.

    The MyCRA Credit Rating Repair mission is to empower people through negotiating the removal of listings, thereby restoring integrity allowing their clients and their families to regain control over their future.

    The reason consumers very often need help when removing listings is two-fold. Firstly, their often limited knowledge of credit reporting legislation (and lack of time to get to know it) leaves them unsure of how to apply the letter of the law in their own circumstances.

    Secondly, negotiating with creditors can be tricky. Clients have to know who to talk to and the way to talk to them. Sometimes people can do more harm than good when trying to fix their own credit rating.

    MyCRA looks after clients who are facing identity theft or Identity Fraud; those with default listings incurred during separation from their spouse or other partners; 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 free copy of their credit report from the credit reporting agencies once a year.

    But if people find inconsistencies on their credit report, they can run into difficulty.

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

    Credit rating 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.

    MyCRA was founded as a means of championing for the underdog in these situations. The company believe everyone should have the right to redress for mistakes in the credit reporting industry.

    For the future, MyCRA is hoping to increase their level of success by improving the frequency of removal and closing the gap on their current default removal rate.  My CRA has a previous track record of up to 91.7% of cases having a default removed.

    The team hope to accomplish this through further increasing skill level and team numbers, building even better relationships with creditors, and continuing to educate consumers on credit reporting.

    With CEO Graham Doessel’s heavy involvement with the Credit Repair Industry Association of Australasia (CRIAA) as an executive member, MyCRA has a strong policy of maintaining consumer advocacy and industry standards.

    MyCRA is proud to be a part of building a set of regulations for the credit repair industry through the CRIAA. They see the introduction of the CRIAA as a catalyst for enforcing change and bringing about a set of standards which will revolutionise the credit repair industry in Australia and New Zealand.

    MyCRA is also proud to be a Premium Corporate Partner with the Finance Brokers’ Association of Australia (FBAA).

     

  • Working away from home? This could impact your credit rating. How to keep your credit file clear when you’re working away.

    Australian miners – you may be the highest paid workers in the country, but in the credit rating repair profession, unfortunately you top the list as the occupation group most likely to get caught out with a bad credit rating. We tell you why you could be susceptible to a bad credit rating and how to ensure you keep your credit file clear – at home and away.

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

    If you are in the mining profession, a flight attendant, army personnel or any person whose profession takes you away from home, you can be likelier to suffer a negative listing on your credit file, namely because you can be away for long periods at a time, or because you can’t keep a close eye on day to day finances and accounts working such odd hours or geographical locations.

    Checking all bills are paid on time and that the account is running as it should be is often difficult when you’re a transient worker.

    Miners and other transient workers often set up direct debits for accounts, but this may not be enough to ensure your credit file remains clear. There can be a number of reasons why bills go to default stage – from correspondence not being read through to errors in the creditor’s billing system. Unfortunately transient workers often don’t receive notification that there is a problem until it is too late to rectify it and your credit rating suffers.

    MyCRA client and transient worker, Shannon recently had us assist in removing a Telstra default from her credit file.

    Shannon has worked as a chef in the mines for the past 8 years in Western Australia.

    She had recently relocated to Western Australia, but unfortunately for various reasons many of her bills were not forwarded on to her new address following the move. This included a Telstra bill, which unfortunately went into default.

    On top of not receiving many bills, she also received no notification  her bills, and in particular her Telstra bill was going unpaid. She also wasn’t notified of the default that had been placed on her credit file.

    It was only when Shannon applied for a home loan and was refused that she realised there was a problem with her account – and this is common.

    Shannon says she was probably at a disadvantage due to the nature of her employment.

    “In the mines, communication can be a problem. I can be out of contact for months at a time so it makes it difficult to keep on top of things. Telstra actually had addresses in their system that didn’t even exist. But this was the problem, I wasn’t getting all the correct information from where I was living, I had no idea the mail wasn’t coming,” she says.

    Shannon recommends anyone who works away from home have a Post Office Box to reduce the risk of mail being stolen or damaged in transit, and so that people can keep on top of their own finances, rather than having to rely on others.

    A credit file exists for anyone who has ever been ‘credit active’ and is used by creditors to assess risk and borrowing capacity of potential borrowers.

    The most common type of adverse listing is a default. Defaults are put there by creditors when accounts have remained unpaid for more than 60 days. Defaults remain on a person’s credit file for 5 years from the date of listing, and have the potential to severely impact a person’s ability to obtain credit.

    Currently, any default can be enough for an automatic decline with most of the major banks. Many lenders are even rejecting loans for excess enquiries such as two in thirty days or six within the year. Some people may even be unable to take out a mobile phone plan in their name if they have defaults on their credit file.

    It is a good idea to take a hard-line approach to your finances and bill notifications to ensure you are not caught out by issues that arise whilst you are absent from home.

    How to keep a clear credit file while working away from home:

    1. Reduce the amount of paper-bills that are sent. Use the internet for all bill payments or set up direct debits from accounts.

    2. Set up a Post Office Box, or appoint a trusted friend or family member to forward mail.

    3. Keep creditors up to date with changes on accounts. If there is ever a problem with bank accounts, or a change of credit or bank cards – ensure all direct debits are altered. This can be a common reason bills get left unpaid.

    4. Check up on credit accounts regularly. Make a point of checking your bills and making sure all payments are up to date.

    5. Don’t let bill issues slide. Take the time to sort out any discrepancies with bills as soon as possible. Accounts which are left unpaid for more than 60 days will be listed as defaults.

    6. Perform a credit file check regularly. Make sure everything is as it should be – including your current contact details and any credit entries. A free credit report can be requested from the major credit reporting agencies Veda Advantage, Dun and Bradstreet and Tasmanian Collection Service (if in Tasmania) every 12 months. A creditor may have listed defaults with one or all of these credit reporting agencies.

    7. Get inconsistencies fixed. If you find errors on your credit file, or feel a listing is unjust or shouldn’t be there, you do have the right to have incorrect information rectified.

    Miners and other transient workers are amongst the highest paid industries in Australia, but many of you are unable to utilise this money for big ticket items like cars and homes because your credit rating has blemishes. A credit rating repairer should be able to completely remove offending blemishes from your credit file, allowing you the chance to start with a clean slate.

    Contact www.mycra.com.au for information on how to repair a bad credit rating.

    Image: wandee007/ FreeDigitalPhotos.net

  • Consumer advocate Graham Doessel, showing ordinary Aussies how to avoid bad credit history from credit card debt

    A major source of bad credit history is credit card debt. People spend more than they can afford, and may even take out one card to pay off the other – and never really clearing their debts until one day their credit rating is tarnished. Credit success begins with choosing the right credit card. It’s important to read the fine print before you decide on a credit card. Avoid getting enticed by rewards and low interest periods, and take the time to understand what you can afford so you can choose the card that fits you and your lifestyle. That’s the key point to avoid bad credit history through credit card debt.

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

    Australian money saving website, Savingsguide.com.au posted a great article yesterday on choosing a credit card. They mentioned how essential choosing the right credit card is to your finances – it can be the difference between good and bad credit history. Here are their 5 tips for choosing the right credit card.

    5 Tips When Getting A Credit Card by Savingsguide.com.au:

    1. At The End Of The Month. If you’re unable to pay off your credit card at the end of the month, Yahoo! Personal Finance suggests looking for cards with 45 days of interest free and then cards that have the lowest interest on purchases. I would also suggest keeping credit use to a minimum until you’re able to pay it off at the end of the month.

    2.  Fee. If you’re planning on using your credit card frequently and for rewards programs, then an annual fee might be a worthwhile spend. You could be looking at anywhere between $50 to $250 a year, but if you’re redeeming your points for money-saving purchases like flights or accommodation, it might be a worthwhile investment. If, however, you’ve got the card as an emergency back up when you go overseas, you may as well just get a card that doesn’t have an annual fee.

    3. Interest Rate. When getting a credit card, it’s essential to weigh up whether any outlay on the card is a worthwhile investment. The same is as true of interest as it is of the annual fee. The card might have a high interest rate but if you can be certain you’re going to be able to pay it off at the end of every month, then those cards can also offer great rewards. Often, it’s stipulated you have to be earning over a certain amount to qualify to use the card.

    4.  Use It Everywhere. People look dismayed when they come to my work and pull out an Amex or Diners. Sure, we can transfer it. At the cost of a 3% surcharge, which usually precludes anyone from wanting to use it. Amex and Diners come with great rewards but a lot of businesses, at least in my town, have no interest in processing them so you have to rely on two cards. Recently, however, cards have been released where they are two cards in one (an Amex and Visa, or an Amex and Mastercard). So if you’re keen for the reward points, it could be worth investigating that option.

    5. Bonuses. Credit cards are big business, and they want to make sure that they keep yours. Hence, the amazing world of bonuses for your credit cards. The most obvious, and the most commonly used, is the protection should you be a victim of fraud. If it happens on your credit card, the bank will usually cover you as part of your credit card contract. If the same thing happens on your debit card, you’re not always as lucky. Other bonuses can include short-term insurance on items bought on your credit card or little luxuries like privileged access to concert tickets when they go on sale and the best seats. If a credit card fulfils all your other criteria, a bonus scheme could be a great way for you to save a bit of money throughout the year.

    Some great advice there on choosing credit cards. One important point is to not be sucked in by promises of rewards or other special deals when choosing credit cards – concentrate on the fees, interest and repayments. If you can afford all of that, then look at the possible benefits rewards can bring.

    Here is my advice to prevent bad credit history from credit card debt:

    Create your own credit limit.
    Set yourself a limit based on what you can comfortably afford to repay. It’s important to realise that you will pay at some point for the credit you use. Make sure at worst case scenario you can afford to repay it. You will then have confidence in your spending without the temptation to overspend.

    Don’t exceed the credit limit.
    This will just mean you incur hefty charges.

    Pay off the balance each month.
    Ideally, pay off the entire card balance within the interest free period. If you don’t, you will be charged interest right back to the date you purchased each item. You not only lose the interest-free period on those past purchases, but until you pay off the balance there will be no interest free period on anything you spend in the future.

    Or, choose a low interest card, but still pay more than the minimum repayment amount each month.
    If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate. It may not offer an interest free period, or hefty rewards points, but the lower interest rate should mean the carried over debt is more manageable for you, and will prevent possible bad credit history.

    Avoid cash advances.
    Interest usually applies immediately on any cash advances from credit cards – whether the withdrawal is within the interest free period or not.

    For help with repairing bad credit history, or more information on your credit rating, visit our website www.mycra.com.au or call MyCRA Credit Rating Repairs tollfree on 1300 667 218.

    Image: worradmu / FreeDigitalPhotos.net

     

     

  • Older Australians at risk of cybercrime: Super funds a prime target

    Personal information has become a valuable commodity in cybercrime circles. It can be extracted, abused and traded for identity theft purposes and to take advantage of someone’s good credit rating. And as many older Australians are finding out – it can also be pilfered to make some crook wealthy through hijacking Super Funds – without the victim knowing a thing about it.

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

    Australian Federal Police warn that older Australians may be susceptible to identity theft, phishing and data mining activities and in particular Superannuation Fraud, according to Technology Spectator.

    Its article ‘Super funds under threat from cyber criminals: AFP’ also reveals that this susceptibility is coupled with a lack of protection around identity verification with self-managed super-funds.

    An Australian Federal Police submission to the Joint Select Committee of Cyber Security recommends wider education about internet awareness for older Australians.

    The AFP says the combination of wealth and size of this population demographic is tempting for fraudsters:

    “Seniors citizens are accessible, they represent the fastest growing demographic in our ageing population and they hold a large portion of Australia’s wealth. Therefore, they are an attractive potential target for, and may fall victim to, an array of scams and frauds,” the AFP said in their report.

    In June last year we blogged about the growing trend of hacking super funds in a post titled ‘Identity theft News: Latest Warnings and Recommendations’.

    At the time, NSW Police had advised the public of a scam targeting Super Accounts, where fraudsters were stealing enough information from unsuspecting victims to transfer their Super into self-managed funds which could then be easily accessed by the criminals. In effect, criminals were hijacking Super funds.

    Fraud Squad Commander Detective Superintendent Col Dyson said “Superannuation fraud…works well because no-one checks their super…victims rarely notice account changes, making it easy for criminals to change mailing addresses.”  Read more on this story ‘Crooks siphon super funds,’ on CRN Australia’s website.

    Unfortunately, unlike bank fraud, there is no obligation for superannuation funds to reimburse victims, and if the fraud occurs on overseas shores, there is unfortunately very little chance of recovering the stolen money.

    There is also the chance that personal information may be further abused by fraudsters taking out credit in the victim’s name once the Super transfer is successful. This can lead to a series of defaults and bad credit history, which can be hard to recover from.

    People should contact Police for what to do if they have been a victim of Superannuation Fraud or any form of identity theft.  They may advise of the victim’s possible eligibility for a Commonwealth Victims of Identity Crime Certificate, which would at least aid in talking to creditors when the victim attempts to remove their bad credit history and recover their good name.

    People should also check their credit report for any signs of misuse – changes in contact information, strange credit enquiries they didn’t initiate and even new credit can all be signs of identity theft. A credit report is free every year, and can be obtained from the credit reporting agencies.

    For help with identity theft recovery, or for more information on identity theft and how it can affect a person’s credit file, contact MyCRA Credit Rating Repairs on 1300 667 218 or www.mycra.com.au.

    Image: Ambro / FreeDigitalPhotos.net

  • Credit – friend or foe? 6 tips to make credit work for you

    Credit – friend or foe? Yes you should take advantage of credit, and we show you how to do that without blowing out repayments, and preventing a bad credit history.

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

    It is no secret that in this day and age many people are struggling with credit.

    Currently we are seeing lots of people running into trouble with their credit rating and the trouble sticks for 5 -7 years

    You could be forgiven for thinking that credit is the enemy…

    But we need to develop the ethos that credit is not something that is granted, it is something that is earnt. At one point banks were practically throwing money at us. Now it’s tough and you have to prove yourself.

    There is absolutely nothing wrong with using credit provided you make it work for you.

    In fact, if you have wondered ‘credit – friend or foe?’ consider what having no credit history will do for your ability to obtain credit. Not having a credit repayment history in this day and age can be just as difficult as having a bad credit rating when it comes to getting finance – especially a home loan.

    Where people come unstuck with credit is getting to a stage where they are forever chasing their tail with repayments, falling behind. Or getting blasé about repayments and not understanding what the consequences can be.

    Credit can be useful provided you make it work for YOU.

    If you can’t afford it now you can have the privilege of paying for it later – but understand that you will pay at some point. So if you don’t make your payments on time now – your credit file – your ability to take out new credit – will suffer for years to come.

    A bit about how a bad credit rating originates…

    Payments on any bills which are more than 60 days late can be listed as a ‘default’ on your credit file.

    This default can remain on your credit rating for 5 years, and can mean you are refused credit for this time. Even if the account was later paid, the credit reporting agency generally does not remove the default but can mark it as paid.

    Even defaults that you have paid still show on your credit report, and are considered bad credit history by most lenders. It is extremely important to keep a clear credit file because the repercussions will be felt for 5 years.

    Here are our 6 credit success tips…

    1. DO USE CREDIT: Having no credit history means there is nothing to calculate and the risk appears high to lenders. Start by borrowing something small. Repaying mobile phone plans, internet accounts, or store credit on time will appeal to anyone checking your credit score. Smaller purchases paid correctly contribute to approval for larger loans such as homes, vehicles and businesses in the future because they show a person’s ability to repay.

    2. MAKE REPAYMENTS ON TIME: Repay any bills received by the due date. Repay over the minimum amount required on credit cards. If you are having trouble paying on time, contact the creditor as they may be able to work out a payment plan rather than listing the non- payment as a default.

    3. HAVE A STABLE ADDRESS: Lenders like to see stability. Furthermore, defaults are easy to come by when bills are sent to the wrong address. If you do travel frequently, consider a trusted family member’s address for all bills.

    4. APPLY FOR CREDIT WITH CARE: You should only apply for credit if you feel you have a very good chance of being approved. Declined credit applications on a person’s file can hinder their chances of obtaining a loan. Likewise, you should only apply for credit you have full intention of pursuing. Every application is noted but does not stipulate whether it was approved or not. If you go shopping for credit and apply everywhere – it may look like you were declined everywhere.

    5. CHECK YOUR CREDIT FILE REGULARLY: You should check your credit file before you need to apply for credit. That way if there are any problems you can sort it out while there is no urgency, and save yourself embarrassment and disappointment from having credit declined. It is free once per year from the credit reporting agencies.

    6. DON’T LEAVE DEFAULTS TOO LATE: If there are defaults, don’t put up with them for 5 years – you may be suitable for credit repair. People can check with a credit file repairer if they can be removed.

    What about credit repair…

    Begin by obtaining a credit report – which you are entitled to do for free every 12 months via the major credit reporting agencies Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service.

    If you find a default, writ or Judgment on your credit file which you believe is there unfairly, unjustly or just shouldn’t be there at all – it may be possible to have it removed.

    Credit repair is a difficult process. Time and again people are disheartened from trying to deal with creditors themselves to have the default, writ or judgment removed from their file. Most are told that default listings never get removed but can be marked as paid.

    Unfortunately, this is not enough to ensure credit is obtained in this current economic market. So basically those black marks mean you are stuck with a bad credit rating for 5-7 years, unable to borrow for homes, cars, businesses and take out simple accounts like mobile phone plans.

    Then the key is to establish a good track record on your credit file, using the above 6 credit success tips.

    Good luck!

    If you need help with repairing your bad credit history, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: Stuart Miles / FreeDigitalPhotos.net

  • Are 177,000 CHILDREN capable of staying safe on Facebook?

    Parents…are your children on Facebook? We look at what this could mean for them, for you and for your credit file.

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

    An alarming statistic was revealed by a leading West Australian newspaper on Sunday on the possible number of WA children on Facebook who were under 13.

    The Sunday Times revealed in its article “Facebook offers up 150,000 West Australian kids” Perth Now, March 3, 2012 that the Facebook advertising database claims it can reach more than 170,000 children in WA under the age of 13.

    “Facebook allows users access to its database statistics if they’re planning to advertise on their website.

    It says advertisers wanting to target young teens in WA could reach an estimated 177,220 users aged 13 or under.

    Facebook doesn’t let users sign up unless they claim to be over 13. But users often give away their true age by listing information such as the primary school they attend,” the article says.

    This is a global issue. A U.S. Facebook study released in June last year, showed that of the 20 million children on Facebook who actively used the social networking site in the past year, 7.5 million—or more than one-third—were younger than 13 and not supposed to be able to use the site.

    “Among young users, more than 5 million were 10 and under, and their accounts were largely unsupervised by their parents,” the report revealed.

    It also revealed that one million children on Facebook were harassed, threatened, or subjected to other forms of cyber-bullying in the past year.

    So what’s happening with our kids? Are they all accessing Facebook in secret? Or are we simply letting them do it – despite government and even Facebook advice to the contrary?

    Apart from the grave dangers of sexual predators and cyber-bullies for our children – we are become more vulnerable to identity theft and being slapped with a bad credit score as a result.

    Identity crime is the fastest growing crime in Australia, according to the Australian Crime Commission. It was reported by former Attorney General Robert McLelland’s office last year, that identity theft affects one in six Australians in some way.

    It’s time to all get a better understanding of the internet. Those who don’t apply meaningful cyber-security measures at home are putting themselves at risk of identity theft, and simply threatening the family’s good credit rating.

    We cannot let our young children have free reign of the computer, regardless of how ‘tech-savvy’ they are.

    Here’s what can happen to anyone, let alone children:

    We can download viruses, participate in scams, release credit card details and disclose personal information and passwords to criminals which can be used to extract money or take out credit in people’s names.

    This can happen through Facebook, it can happen via email, and it can happen via very legitimate looking websites.

    If millions of Australian parents have been fooled, what chance do these 177,000 children under 13 have? That’s what the cyber-crooks are banking on.

    Don’t know the first thing about the internet? If your child does – you need to get to know about it!

    The amount of personal information that many young people have freely available for viewing on Facebook is frightening. That can be information about them, or it can also be about friends and family.

    We may say it is harmless, but what’s to say fraudsters can’t sit on that information and wait until their victims come of age to commit fraud in their name? In fact, authorities say it is happening – they even have a name, it’s called ‘data warehousing’.

    Superintendant Brian Hay from the Queensland Fraud Squad told Channel 7’s Sunrise Program in October last year, that criminals were targeting the personal information of our young Facebook users. and storing the personal information until they turn 18.

    “We know that the crooks have been data warehousing identity information, we know that they’ve been building search engines to profile and build identities,” he told Sunrise.

    Most identity theft victims have no idea they have given away personal information to fraudsters until it is too late. If identity fraud sees accounts in the victim’s name going undetected and unpaid past 60 days, the parent’s credit file can be ruined for 5-7 years due to defaults.

    It need not be major fraud to be a massive blow to the identity theft victim – leading to a bad credit score. Unpaid accounts for as little as $100 can lead to a bad credit score and have the same impact on getting a loan. So any misuse of someone’s credit file can be extremely significant.

    For parents who want to educate themselves about the risks of cyber-crime, the Government has put together the CyberSmart website, encouraging parents and kids to be aware of the dangers the internet may pose for children. A Cyber Smart fact-sheet for this age group recommends the close monitoring of all children’s internet use.

    And importantly, if young people of any age are on Facebook, educate them and yourself about what that could mean for them and for you.

    If people suspect identity theft has affected their credit file, they can contact MyCRA Credit Rating Repairs www.mycra.com.au or call tollfree on 1300 667 218 for help restoring their good name and clearing their bad credit score following identity theft.

    Image: Clare Bloomfield / FreeDigitalPhotos.net

    Image: Ambro/ FreeDigitalPhotos.net