Tag: credit

Survey reveals Perth most at risk of identity theft

A survey on identity theft risks released by internet security software company AVG today reveals the Australian cities most at risk of online identity fraud and data loss.

The survey of online and mobile consumer behaviour was conducted over 2 weeks in August, and involved 1250 consumers across 5 states of Australia who own an Internet-connected device and have Internet-access at home.

Results showed Perth respondents were most at risk for stolen identities, digital fraud and data loss, followed by Brisbane, then Sydney and Melbourne in equal third and Adelaide ranking fifth as the most security savvy city.

Here are AVG’s findings :

Overall Results

Across the board, the survey showed many Australians are putting themselves at risk of identity theft, viruses and malware with poor PC security habits and a lack of comprehensive protection. Of those surveyed in the five cities:

•         22 per cent have been the victim of a phishing scam

•         25 per cent have shared online passwords with at least one other person

•         12 per cent do not run an anti-virus scan at least monthly

•         73 per cent do not use an identity monitoring service or other form of identity protection service.

Recently we blogged about mobile security and the need for people to secure their smartphone to prevent identity theft. Interestingly, AVG’s survey revealed how little users considered the value of security on their mobile devices.

While most of those questioned (77 per cent) use three or more passwords online, less than one in five (18 per cent) had changed the password on their mobile device in the past year.

“Consumers are getting better at recognising and addressing online threats, but it’s vital to ensure all your bases are covered. Taking some security measures and overlooking others — such as backing up your PC and not your smartphone — is like locking your door and leaving the windows open. Comprehensive online protection means covering all Internet-enabled devices – smartphone, tablet and PC,” said Lloyd Borrett, Security Evangelist at AVG (AU/NZ).

In terms of credit repair –the statistics are interesting. MyCRA certainly has seen a few clients from Perth who have claimed to be victims of identity fraud.

Often it is not understood how easy it is for criminals to steal peoples’ personal information or bank details online, and then use that information to take out credit in the victim’s name. It is also not realised how widespread the problem is becoming.

A recent survey of online fraud reveals one in 10 people have lost money to online fraud in the past year. That figure has doubled in four years.

There can be great difficulty for people in recovering their clear credit file following identity theft. Particularly with some of the more sophisticated forms of identity theft, often the victim is not aware their credit file has been used right away. Often people don’t know they are victims until they apply for credit and are flatly refused. Some have even had properties mortgaged in their name.

Credit rating defaults remain on credit files in Australia for 5 years. The consequence of people having a black mark on their credit rating is generally an inability to obtain credit. Most of the major banks refuse credit to people who have defaults, or even too many credit enquiries.

By law in Australia, if a listing contains inconsistencies the credit file holder has the right to negotiate their amendment or removal.

But to clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit – which can be difficult. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

In terms of preventing this crime, there is a host of information for internet users, but many people don’t learn about identity theft until they or someone they know becomes a victim.

The Government has two websites with a host of information about safe computer use for internet users. Its Stay Smart Online website gives people information on how they can secure their computer, as well as safety tips for the whole family.

The SCAMwatch website www.scamwatch.gov.au specifically warns internet users about scams in the community. Visitors can log on to an alert system for any new scams which are found to threaten the safety of people and their personal information.

The Stay Smart Online website recommends Australians follow these 8 top tips for increasing their resistance to identity fraud, and avoiding the loss to their bank balance and potentially their good name:

1. Install and renew your security software and set it to scan regularly.
2. Turn on automatic updates on all your software, including your operating system and other applications.
3. Think carefully before you click on links or attachments, particularly in emails and on social networking sites.
4. Regularly adjust your privacy settings on social networking sites.
5. Report or talk to someone about anything online that makes you feel uncomfortable or threatened – download the government’s Cybersafety Help Button.
6. Stop and think before you post any photos or financial or personal information about yourself, your friends or family.
7. Use strong passwords and change them at least twice a year.
8. Talk within your family about good online safety.

For more information on credit rating repair following identity theft, people can visit the MyCRA Credit Repairs website www.mycra.com.au.

Image: jscreationzs / FreeDigitalPhotos.net

Image: Stuart Miles / FreeDigitalPhotos.net

08/09/2011
Australian PlayStation users given free identity theft protection for a year

Finally Sony has recognised the possible threat that was made to the personal information of its 1.5 million Australian PlayStation users. After one of the world’s biggest data breaches occurred on the PlayStation Network in April, Sony has come to the party with an offer of free identity protection for the year.

The Sydney Morning Herald reports about this in its story ‘Sony offers free ID theft protection to Aussies.’

The package includes “CyberAgent Internet Surveillance”, whereby CS Identity’s technology scours the internet for unauthorised use of your identity. The firm conducts 24/7 monitoring of criminal web pages, chat rooms, bulletin boards and file sharing sites to identify trading or selling of customers’ personal information.

Identity restoration is also included, which involves the firm helping customers restore their identity after becoming the victim of identity theft.
The data stolen during the breach includes names, gender, addresses, email addresses, birthdays and login passwords for Sony’s PlayStation Network and its Qriocity music streaming service.

All up 1,560,791 Australian accounts were affected – 280,000 of which had credit card details. This is a fraction of the 77 million total accounts exposed worldwide.

Security experts have warned that even without credit card details, hackers could use the other stolen details to construct highly targeted and believable attacks designed to steal more personal information and/or infect computers.

The SMH says the Australian Privacy Commissioner, Timothy Pilgrim, has been investigating the breach, and they say it is still ongoing. In May we blogged about Australia’s Privacy Laws, as they relate to data breaches.

The Government is set to introduce tougher Privacy Laws following this data breach. One of which will be mandatory notification laws, helping to protect Australians from identity theft following any future data breaches, and another which will allow victims of identity theft following a data breach to be able to obtain some kind of compensation for any loss they may receive.

The Sydney Morning Herald recently reported one in 10 Australians who use the internet have lost money to online identity fraud over the past year, according to VeriSign Authentification Services. We recently blogged that these fraud figures have doubled since 2007. The cost of this is estimated to be $1.286 billion during the past year.

But the real cost of identity theft comes when a person’s credit file is impaired. When identity theft affects people’s credit files there is no reimbursement for losing the money they could borrow. But victims often lose their dream home, can’t borrow for their business and can’t get the new car they wanted.

Often victims don’t know about the fraud until they apply for credit and are refused because they have a bad credit rating.

Image: Arvin Balaraman / FreeDigitalPhotos.net

25/08/2011

Australians are reigning in their debts and focusing on home ownership

Recent information from the Australian Bureau of Statistics reveals that Australians are putting the focus back on to borrowing for home ownership. Figures show owner occupied housing has stabilised and slightly increased, but that people are borrowing less for other personal reasons and investing less.

Here are key figures from the ABS Lending Finance report from June.

JUNE KEY FIGURES

		May 2011	Jun 2011	May 2011 to Jun 2011
		$m	$m	% change

TREND ESTIMATES
	Housing finance for owner occupation(a)	13 752	13 882	0.9
	Personal finance	6 852	6 891	0.6
	Commercial finance	30 544	30 443	-0.3
	Lease finance	401	394	-1.7
SEASONALLY ADJUSTED ESTIMATES
	Housing finance for owner occupation(a)	14 131	14 127	0.0
	Personal finance	7 050	6 993	-0.8
	Commercial finance	31 984	29 897	-6.5
	Lease finance	403	374	-7.2

(a) Excludes alterations and additions

With personal finance declining, this may be a reflection that more people than ever are using credit wisely. Perhaps less people are caught in the cycle of borrowing too much for non-appreciating goods.

With the focus back on to owner-occupied housing – it will be beneficial for people to ensure their credit file accurately reflects their ability to repay debt. Especially considering lenders are still making it fairly tough for people to secure a loan.

If people have defaults, writs or Judgments on their credit file, generally they are denied access to a home loan in the current market, regardless of their savings record or wage. This can be devastating. Adverse listings remain on the credit file for 5 years – so something a person experienced 4 years ago can still have a major impact on them today.

Often people only find out about their bad credit rating when they have emotionally, legally and financially committed to a house contract. Typically all the approvals are set to go, and it is not until the credit check that it is revealed that their credit record contains defaults, meaning their home loan is declined.

If only they had known that under current legislation in Australia, they could conduct a FREE credit file check with each credit reporting agency once a year! They could have done this prior to looking for a home, and would have been alerted to the adverse listings, and been able to deal with any inconsistencies before the matter was urgent.

If people find listings on their credit file which are incorrect, contain errors within the listing, or are unjust and simply shouldn’t be there they do have the right to have them removed. The problem is this process can be time consuming – and borrowers can often lose the house they have under contract.

Many clients say “fixing my bad credit is the most difficult thing I have ever tried to do.” This is because the onus is on the credit file holder to prove the inaccuracy of the listing, and negotiate its removal. Many creditors saying that they will only mark the listing as paid and will not remove the default. But this is not enough to ensure finance approval in most cases.

But people should know, that with the right tools there is a good chance their credit file can be completely cleared.

So what can house hunters do to improve their chances of loan approval?

Apart from save like mad and have a good steady income…

(1) Obtain a copy of their credit file

(2) Check for any inaccuracies

(3) If there are errors, negotiate with creditors to remove the default/s, or contact a credit repair company for default removal

(4) Apply for a home loan with a clear credit rating and be provided the choice of a selection of home loans at the best interest rate on offer today.

Contact MyCRA Credit Repairs for information on credit repair.

Image: jscreationzs / FreeDigitalPhotos.net

11/08/2011

Ordinary Australians are most at risk of identity theft

A leading commentator on technology issues, Stilgherrian has warned readers of ABC’s opinion column ‘The Drum’ that the idea perpetuated by the media that identity theft is mostly a risk for governments and big business is masking the more significant occurences of identity theft to individuals in Australia and the world.

“Indeed, the stories that get reported are chosen precisely because they can provide simple narratives and archetypical characters with clear motives, not because they’re significant battles in the perpetual cops-versus-crims war for control of the internet,” he says.

Stilgherrian says the real truth of identity theft is that the typical victim is an ordinary person who has fallen prey to the vast criminal network which exists on the internet.

First, these crimes are committed on a vast scale. Criminal processes are orchestrated globally, automated, and supported by thousands of unwitting, disposable minions. If only a tiny percentage of people fall for scams, we’re still talking millions of dollars.

Second, the bad guys are good at this. Really good. Blaming the victims is inappropriate. “They had it coming to them”?Really?

Third, it all connects up. Fifty bucks went missing from your credit card precisely because the number had been stolen from a poorly-secured online store. The legitimate website popped up the message from the fake anti-virus product because it, too, was poorly secured and had been hacked automatically by software that probed a hundred thousand websites one night.

Or, in the case of identity theft, when someone takes out $50,000 of loans in your name? That happens through the gradual accumulation of personal data. Your name and email address from a list stolen from a hacked website, cross-matched with your street address from another, your date of birth from a third, and so on.

These databases can contain millions of people’s details. They’re traded in shady online markets where people buy the pieces missing from the databases they already have, merge them, refine them, mark ’em up and sell ’em on until eventually there’s enough to turn it all into a credit application. It’s then laundered though “money mules”, people recruited in the belief they’re making money at home with just a computer.

Stilgherrian’s commentary highlights the fact that identity theft can occur to anyone. We also want people to know these important points:

* Often, people don’t know identity theft has occurred to them, until they apply for credit and are refused.

* Often, a person’s credit file can end up with a long list of defaults put there by someone who has used the victim’s good name to obtain credit.

* Credit file defaults are debilitating – leaving people unable to obtain home loans, personal loans, even mobile phone plans during the term of the listing which is generally 5 years.

* Credit file damage due to identity theft can be very difficult to rectify. To clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit – which can be difficult. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

How to avoid identity theft

Public education can go a long way to lessening the instances of identity theft. The Government’s Stay Smart Online website recommends Australians follow these 8 top tips for increasing their resistance to identity fraud, and avoiding the loss to their bank balance and potentially their good name:

1. Install and renew your security software and set it to scan regularly.

2. Turn on automatic updates on all your software, including
your operating system and other applications.

3. Think carefully before you click on links or attachments, particularly in emails and on social networking sites.

4. Regularly adjust your privacy settings on social networking sites.

5. Report or talk to someone about anything online that makes you feel uncomfortable or threatened – download the government’s Cybersafety Help Button.

6. Stop and think before you post any photos or financial or personal information about yourself, your friends or family.

7. Use strong passwords and change them at least twice a year.

8. Talk within your family about good online safety.

Where to go for help following identity theft

Sometimes unravelling the tangled ‘web’ of online identity fraud for the purposes of negotiating with creditors to restore someone’s good name is a minefield that many individuals have neither the time nor the skill set for.

Credit repairers are more commonly involved in assisting people in cases of identity fraud due to a better knowledge of legislation and ability to work within it when negotiating with creditors over the victim’s financial future.

For more information contact MyCRA Credit Repairs or call tollfree 1300 667 218.

Image: Danilo Rizzuti / FreeDigitalPhotos.net

08/08/2011
Consumer debt reduction: Watch out for new bank fees

Our last blog post was about debt struggles and solutions –and how people can protect their credit file. Featured in this post were recent findings from Dun & Bradstreet’s bi-annual debt survey, showing one in three Australians will struggle to repay their debts in the September quarter.

The Sydney Morning Herald recently published an article featuring this survey, titled ‘Australians still hooked on credit’. It reported that many people are still heavily reliant on credit to purchase something they could otherwise not afford, despite the assessment of their household’s financial outlook now being at a 20-year low. But the article reports some sections of the population are reducing their credit use. It reports Mastercard as saying:

“The austere mood caused the annual growth in credit card numbers in Australia to slow to 1.76 per cent in the 12 months to May. Purchases made on debit cards jumped 17.3 per cent during that time as consumers sought more control over their finances.”

If the downward trend to reduce credit continues, people will become more reliant on debit cards and Eftpos to make their purchases.

But as the Herald Sun reports in its article ‘Banks are busy working on ways to replace income lost from fees‘, people may be penalised for this change. It reports a new Eftpos tax will result in an extra 10c interchange fee and 1c EPAL scheme fee increase on Eftpos transactions starting October 1, 2011. Here is an excerpt from this story:

The company that runs Eftpos, EPAL, has given banks until
next month to opt in to its new, higher interchange fee structure.

“Banks are about to start charging for something they previously provided for free,” said Jost Stollmann, chief executive of a rival player in the debit-card payment industry, Tyro Payments.

“In fact they supplied this service for less than free: they paid 5c each time someone used Eftpos.”

“Now EPAL has reversed that subsidy and created a new 5c fee to acquirers, which will flow through to retailers and merchants.”

The Australian Newsagents’ Federation say the new Eftpos fee
regime will impose fees of up to 21c for each Eftpos transaction, up 110 per cent on existing fees.

“No retailer can negotiate the interchange fee with his bank. The new EPAL regime is all about raising bank fees,” the federation says in a new advertising campaign.

The story explains how banks have cut out exit fees on home loans, and many of the other fees that consumers have traditionally complained about, but have cleverly sought alternative ways of replacing the lost fees. It reports one way of recovering lost revenue from exit fees is to increase ongoing fees on home loans. The story reports fees in this area have increased on average around $75 a year since 2009. Also some banks have announced increased upfront fees on some of their variable home loans recently. The highest upfront fee increase was $600 on one Commonwealth Bank product.

So consumers will have to bear the cost of reduced fees in some areas, with increased fees in others. If people want to refinance to a cheaper interest rate to save money, they won’t pay exit fees to leave that home loan – but they could pay higher upfront fees on many of the new loans they may want to switch to. Hmmm….

Is the process of saving money and reducing debt just getting more difficult to navigate?

How do we know the best ways to save money?

For those who, despite all of the obstacles to success are determined to reduce debt – the best place to start is to get interested and updated on ways to save money. We encourage people to get educated about debt, and ways to avoid a bad credit rating, which can ruin people’s ability to obtain good credit for 5-7 years.

The fact is credit is an essential part of being money smart in today’s society. Unfortunately we need credit. People can’t go back to wacking the money under the mattress. They simply cannot function without savings records and credit history in order to obtain major credit like mortgages and personal loans. So to succeed, it’s a matter of being educated about smart ways to use credit.

There are a number of great places to start getting educated. We love the advice given on Australian blog Savingsguide. Also extremely informative is ASIC’s Money smart website. Of course, we can’t go past a trusted favourite like MSN Money.

If people find despite their education on money principles, they still can’t get ahead due to the disadvantage of having credit rating defaults, writs or Judgments – it may be possible to start with a clean slate by having them removed. Not all credit files can be repaired, but those which contain adverse listings with errors, which are unjust or just shouldn’t be there are good candidates. Credit repairers completely remove defaults, writs or Judgments from people’s credit files, allowing people the financial freedom to choose the best interest rates, and financial products which are right for
them. For example, people who are living with a bad credit rating who invest in credit repair can potentially save thousands on interest by the ability to select a cheaper interest rate. Contact us at MyCRA Credit Repairs for more information.

Image: Salvatore Vuono / FreeDigitalPhotos.net

Image: Ambro / FreeDigitalPhotos.net

28/07/2011
Consumer debt struggles and solutions

A recent survey revealed that about one in three Australians said they will struggle to repay their debts in the coming September quarter. If this many Australians have money problems, then more should be done to educate people on our credit reporting laws, and what can happen to people’s finances, should they end up with a bad credit rating.

When things get bad enough that repayments are getting missed, people need to be aware of the cycle they may be getting themselves into.

Black marks on people’s credit reports remain there for 5 – 7 years, and can severely hinder their chances of getting further credit, from mortgages to mobile phone plans.

If people are struggling to make repayments, they need to take a pro-active approach to managing the solutions.

It is human nature for people to not want to admit their failings, but it is important for people to realise that the choices they make with their debts today can affect them as far as seven years down the track.

All forms of credit, from mortgage repayments through to our utilities bills have the potential to affect our credit rating should they get too far in arrears.

Debt survey

Credit reporting agency Dun & Bradstreet released its bi-annual debt survey recently. The survey revealed that almost one third of Australians will struggle to meet their credit commitments in the September quarter. It also revealed that 37 percent intend to use their credit card to purchase something they could otherwise not afford. Twenty-one percent say their household debt will increase over the next three months, and almost half say an interest rate rise in the September quarter would negatively affect their household’s finances.

“…the reliance on credit for household purchases in spite of apprehension about their ability to meet these commitments is worrying, as an issue that can affect their future credit rating and ability to access credit – often when they need it the most,” Dun & Bradstreet’s CEO Christine Christian says.

Credit reporting explained

Current legislation allows creditors of any form to list a default on a person’s credit file when the repayment is more than 60 days late. These default listings remain on a person’s credit file for 5 years. In the current market, most major banks are currently rejecting loan applications because of defaults, and many even for excess credit enquiries. So anyone who wishes to obtain credit should be ensuring they sort out any debt problems before they escalate to default stage.

Under current legislation, people can see what is reported about them on their credit file, by obtaining a free copy of their credit report every 12 months. They may contact one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services and it will be posted to them within 10 working days.

If people find defaults, writs or Judgments which they believe are unjust, contain errors or just simply shouldn’t be there, they do have the right to have them removed. Credit rating repairers can assist with this removal by negotiating directly with creditors on a person’s behalf.

Solutions for debt to avoid a bad credit rating

1. Contact creditors immediately. People may be able to negotiate either a short-term or long-term change to their repayments. Many creditors, especially the major banks have options available to struggling families to help them keep up with repayments. Many appreciate people keeping in touch and working out solutions everyone can live with.

2. Put the spotlight on spending. Paul Clitheroe advises those who can’t make repayments to keep a spending diary for a week or two.

“This will show you exactly where your money is going, and chances are you’ll find plenty of little-but-often outlays that quickly add up to much larger amounts. Cut back on these and you’ll free up money for repayments,” Mr Clitheroe says.

3. Consider the difference between wants and needs. People
should consider how many of the items they regularly spend money on are necessities, and how many can be sacrificed for the short term in order to ensure their long term financial future is safe? People could choose to live without life’s little perks – like the Foxtel account, magazine subscriptions, or eating out while they get on top of their credit issues.

4. Downgrade if necessary. For people in serious financial trouble, it may be a matter of swallowing their pride and downsizing or selling the family home, or moving to cheaper rental accommodation until they get back on top of things.

For people who have defaults, writs and Judgments which are unfairly disadvantaging them, and they feel they should not be there – they can contact MyCRA Credit Repairs. We permanently remove black marks from credit files.

Image: nuttakit / FreeDigitalPhotos.net

25/07/2011
Caught affluenza? How it can affect your credit rating health

Affluenza is a disease of the 21st Century that can make us sick, and it can make our credit file sick with it –pulling us into a crazy cycle of spending and debt. Many of us are struggling to stay happy under a pile of ‘things’ and a pile of debt.

The Wikipedia explanation of affluenza refers to it as “a painful, contagious, socially transmitted condition of overload, debt, anxiety and waste resulting from the dogged pursuit of more.”

It is the disease of consumerism and it is being fuelled by big corporations urging us to buy more, persuading us with clever advertising aimed at selling to our emotions. It drives us to work crazy hours leaving no time for ourselves and our families. It drives up the mental health problems, the suicide rates, the divorce rates, the drug addictions, fraud, the stress related health problems – all these things seem to be a curse of living in the 21^st Century in the Western world.

Recently Fran Sidoti from SavingsGuide.com.au posted an interesting article about this topic titled Affluenza, And What It Might Mean For You. She says it starts by wanting a big house, and then all of those things that go in it, and with it – but that when we have everything, we are still not happy. She suggests we take a step back and employ old-fashioned values like “building a strong family, especially with an awareness of role models like grandparents who wouldn’t recognise affluenza if it bit them. A respect for hard work and the money it earns is crucial, as is emphasis on philanthropy and charity.”

Australians Clive Hamilton and Richard Denniss’ book, Affluenza: When Too Much is Never Enough, poses the question, “If the economy has been doing so well, why are we not becoming happier?”

Here is an excerpt from that book:

“Our houses are bigger than ever, but our families are smaller. Our kids go to the best schools we can afford, but we hardly see them. We’ve got more money to spend, yet we’re further in debt than ever before. What is going on?

The Western world is in the grip of a consumption binge that is unique in human history. We aspire to the lifestyles of the rich and famous at the cost of family, friends and personal fulfilment. Rates of stress, depression and obesity are up as we wrestle with the emptiness and endless disappointments of the consumer life.

Affluenza pulls no punches, claiming our whole society is addicted to overconsumption. It tracks how much Australians overwork, the growing mountains of stuff we throw out, the drugs we take to ‘self-medicate’ and the real meaning of ‘choice’. Fortunately there is a cure. More and more Australians are deciding to ignore the advertisers, reduce their consumer spending and recapture their time for the things that really matter.”

How many of us know someone who has gotten really sick – so sick that they lose everything – the house, the car, the job. If they are lucky enough to survive it, they always seem to have this new-found view of money. They often make that life changing decision to cut back on all those material things. They say they appreciate that the real joy in this world comes from spending time with family and friends and also dedicating some time to themselves.

A new perspective on credit

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

How healthy are we looking?

It is perfectly okay to use credit, as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life.

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

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

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

A clean slate

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

A credit repairer can work with creditors on our behalf to completely clear our credit file of all defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. This means we no longer have a bad credit rating, but a completely clear credit file, giving us the financial freedom to use credit whenever we need to.

The rest is up to us.

Visit MyCRA’s website www.mycra.com.au for more information on credit repair.

Image: Salvatore Vuono/ FreeDigitalPhotos.net

Image: photostock/FreeDigitalPhotos.net

07/07/2011
Credit – Friend or Foe? 6 Tips To Help…

It is no secret that in our modern age many people are struggling with credit.

It has been reported that 40% of Australians had paid bills late in the past 12 months. Electricity, mobile phone and home phone bills were the most likely to be paid late. (Research by Dun & Bradstreet May 2010).

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 MY CRA believes we need to develop the ethos that credit is not something that is granted, it is something that is earned. 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, not having a credit rating in this day and age can be just as difficult as having a bad credit rating.

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 realising the consequences.

Credit can be wonderful provided you maximise it to suit 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.

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 be very detrimental to your ability to gain further credit. 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 show up as being paid can be enough for a decline on home loan approval in the future. It is extremely important to keep a clear credit file because the repercussions will be felt for 5 years.

There is no time like the present to start making credit work for you.

Begin by checking your credit file – which you are entitled to do for free. Visit www.mycreditfile.com.au to be sent a copy of your credit report.

If you find a default, writ or judgement on your credit file which you believe is there unfairly, unjustly or just shouldn’t be there at all – MY CRA may be able to remove it. We have had up to a a 91.7% success rate for cases we’ve take on. Most cases have a clearance rate of around 21 working days, with some tough cases taking a little longer. (more info on timeframes..)

Then the key is to establish a good track record on your credit file.

Here are some tips:

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.

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.

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.

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.

CHECK CREDIT FILE REGULARLY: You should check your 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.

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

Please Note: Our previous results of up to 91.7% have applied only to consumer applications and past results are no indication of future performance

25/02/2011