MyCRA Specialist Credit Repair Lawyers

Tag: dnb

  • It’s not credit for Christmas, says DnB

    Christmas credit may not be ‘on the cards’ for shoppers this year. Due to concern about financial security in Australia, it is predicted shoppers will continue to tighten their purse strings over the Christmas period, with less predicted to spend money on non-essential items and credit usage predicted to drop, according to credit reporting agency Dun & Bradstreet.

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

    Findings from Dun & Bradstreet’s latest Consumer Credit Expectations Survey, which measures expectations for savings, credit usage, spending and debt performance during the December quarter 2012, show half of Australia’s households are less likely to spend on non-essentials in the coming months.

    The survey showed:

    • One in three (29%) are more inclined to save than they were 12 months ago.
    • 56 per cent of Australians are concerned about their personal financial situation.
    • 37 per cent of households less likely to use a credit card to pay for non-essential items over Christmas compared to the same period last year, while just 16 per cent plan to apply for a new credit product or limit increase.

    Dun & Bradstreet notes that the Reserve Bank’s decision to lower interest rates due to slower economic growth comes as households reduce debt and increase savings as a buffer against economic instability, including the risk of rising unemployment. The bank is now predicting more moderate and sustainable credit growth off the back of this trend in consumer behaviour.

    Dun & Bradstreet General Manager, Danielle Woods, says the conservative consumer outlook could have a significant negative impact on businesses reliant on the Christmas rush.

    “An increasing number of Australians are concerned about their financial security and this is weighing heavily on their plans for the Christmas period,” Ms Woods said.

    “Prioritising saving over non-essential spending is a positive for the balance sheets of Australian households and the Reserve Bank is certainly encouraging this behaviour, in light of uncertain employment conditions. However, it could have detrimental flow on effects for businesses that are looking to Christmas to drive an uplift in sales.”

    However DnB also says, while consumers are planning to avoid non-essential spending and non-essential credit usage during the Christmas period, a significant proportion will need to rely on existing lines of credit to cover the cost of living.

    Forty per cent of 35-49 year olds will use credit to cover expenses they couldn’t otherwise afford, up from 35 per cent during the December quarter 2011. In addition, 60 per cent of this demographic are expressing concern over their financial situation and one in three (35%) would last no longer than one month on their current savings without full-time employment.

    This survey reveals a similar sentiment from Australian Bureau of Statistics figures released in September this year, showing one in seven Australian households is spending more than it earns, as the working poor struggle with monster mortgages and surging power bills.

    “Nearly 8 per cent of the nation’s richest households were living on credit, the Australian Bureau of Statistics reported yesterday.

    Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10.

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned”, it was revealed in news.com.au ‘Aussie strugglers living beyond means’.

    So it seems the trend is continuing that most people are batting down the hatches and reducing their spending in order to pay down debts – but there are sections of the community who are still struggling due to rising costs of living and over-commitment. This seems apparent regardless of income. So for those people, credit for Christmas may be a reality.

    Causes for over-commitment can be a simple inability to manage money – wanting more than they can afford. Or in some cases, over-commitment can be a gradual thing – sometimes caused by expensive credit as a result of bad credit history. There have been reports that possibly as many as 3,000,000 Australians are impacted by bad credit history.

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

    If the person with bad credit history wants to try and start again with credit, it may be possible to wipe the slate clean  and remove bad credit history, particularly if it should not be there, or was incorrect in the first place.  If the credit file contains inconsistencies, that person may be a good candidate for credit repair.

    A credit repairer can work with creditors on behalf of the client to identify inconsistencies and negotiate to clear the credit file of those defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. A clear credit rating would give them the financial freedom to use credit whenever they need to at competitive rates.

    For advice about credit repair contact a  Credit Repair Advisor on 1300 667 218 or visit MyCRA Credit Rating Repairs website www.mycra.com.au.

     

  • Yes, You Can Get A Free Copy Of Your Credit File In Australia

    There has been a lot of chatter recently about Identity Theft, Online Scams and  such and one of the best ways to be on the look out for these issues is to grab hold of your free credit report every 12 months..

    There are 3 main credit reporting agencies in Australia  and the largest is Veda Advantage.Payment past due  (formerly known as Baycorp Advantage and before that CRAA)

    The three credit reporting agencies are:

    Each one of these can provide you with a FREE copy of your credit file within 10 working days upon request.

    MyCRA Credit Repair suggests you put a reminder into your diary on your birthday every year to jump online and grab a copy of your credit file.

    Then check to confirm you recognise each and every entry on on your credit report.  If you do find anything that you don’t immediately recognise, like an application for credit that you don’t recall or a defalt for a debt you know nothing about:

    1. Contact the creditor immediately
    2. find out what it was for
      • If you still have no idea, Contact the Federal Police Immediately !
    3. If you have defaults that are incorrect, unfair or just shouldn’t be there,
      • Dispute them with your creditor and ask that they be removed immediately..

    If you have trouble or in a hurry, you may choose to engage a professional Credit Repair Firm like MyCRA Credit Rating Repair

    For more information on getting a free copy of your credit file, please go to http://www.mycra.com.au/credit-file-request/

  • Plain English Credit – What you should know about taking on credit

    What you should know about taking on credit

    What is my credit rating?
    Your credit rating is a file on your credit history and is collated by the major credit reporting agencies if you have ever been credit-active.  Your credit rating is then checked by any financial institution or credit provider and is used to assess both the amount you are able to borrow and your ability to repay the loan.
    What does ‘credit active’ mean?
    Anyone that has borrowed money, or has established an account for services is credit active and will have a file in their name. This includes mobile phone plans, accounts with utility companies, rates accounts and of course loans of any kind.
    What is defined as a ‘bad’ credit rating?
    In broad terms, any credit defaults, court actions or writs, external administrations and bankruptcy are all recorded on your credit file and would be considered ‘bad’ credit history by most credit providers.
    In this current economic climate basic defaults and even too many credit enquiries or applications for credit may be considered to be tarnishes on your credit rating.
    How do I know if I have a bad credit rating?
    If you are unsure what is on your credit file, it would be worth taking the time to find out.
    There are three major credit reporting agencies in Australia: Veda Advantage – which holds the credit file of over 14 million Australians, Dun and Bradstreet and Tasmanian Collection Service.
    You can write to or email one of these agencies and request a copy of your file.  If you are not in a hurry there is no charge to you but it will take 10 working days from application to receive this information.
    What is not realised by many people is how easy it is to have a default slapped on their file.  If a bill is more than 60 days late (including rates, power, mobile phones) then a provider has the right to notify you of their intentions to record this default on your credit file. Even if this bill is paid and noted on your file, this default usually remains on your record for 5 years.
    I have found defaults on my credit rating, what are the consequences of this?
    If you discover you have a bad credit file, you will find it very difficult to obtain credit in the future. Generally this problem will keep occurring for the 5 years the default is on your file. This will probably prevent you from obtaining a home loan with most lenders and possibly lead to credit refusal of many kinds from cards to phone plans.
    What can I do to fix my credit rating?
    Once you have obtained a report there are three things to consider:
    1. Check the accuracy of the report. If there are errors, be aware you do have the right to have errors rectified.  Likewise, if there are numerous strange defaults and or applications for credit that you don’t recognise – you would need to immediately investigate these and notify Police in case of identity fraud.
    2. Check you were informed of any intention to list. Current legislation requires you to have been informed in writing of any intention from creditors to list you as a defaulting on credit.
    3. Check the fairness of the listing. Only serious credit infringements should be recorded, or overdue bills in which 60 days have elapsed since payment was due.
    How does My CRA work to repair my credit rating?
    In many cases where people have attempted to remove the default themselves, they have come across difficulties and defaults have not been cleared. Most times the creditor will explain to the client that defaults DONT EVER get removed. The best they can do is mark the listing as paid (if it’s been paid).  This may not be sufficient to ensure credit is obtained with some lenders.
    If you have a default, writ or judgement that has errors or just shouldn’t be there – there is a good chance that My CRA can actually remove it – meaning your financial future is looking a whole lot brighter.
    My CRA works with creditors to negotiate on your behalf and work for your best outcome based on the creditor’s compliancy with the current legislation. We will also look at any other extenuating circumstances to determine if there is an avenue we can investigate which results in having the listing removed.
    We have had up to a 91.7% success rate with cases we take on.   Many credit ratings are cleared within or around 21 working days though some do take longer depending on the difficulty of the case.
    Should I try to cut out all credit from now on?
    Credit is not all bad.  In fact, not having ever taken out credit can harm your chances of obtaining a loan just as much as having a bad credit rating.
    However, we do advise you to be cautious with credit. Start small, for instance a mobile phone plan or store credit card. Make all repayments on time and work methodically to build up a solid credit history.
    What can I do to maintain a good credit rating?
    1. Make all payments on time. This is the easiest way to ensure there are no discrepancies or defaults on your credit file.
    If you are unable to make a payment on time, contact the creditor. They may be able to set up a payment plan for you until you get back on your feet.
    2. Regularly obtain a copy of your credit file – once a year is recommended.
    3. Sign up for Veda Advantage’s Alert system. For approximately $50 per year they can send you a copy of your credit report and email you of any changes made to your credit file within the 12 months of membership.
    4. Keep credit card limits within a set budget. Don’t be tempted to accept the sky high limits some banks offer as it could encourage you to spend needlessly and blow out your budget.
    5. Be aware of excessive credit enquiries. If you are not sure about your credit health, get it checked before applying for new credit. Declined credit applications on a person’s file can hinder their chances of obtaining a loan. Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year.
    6. Don’t shop around for credit. You should only apply for credit you have full intention of pursuing. Every application for credit will be noted on your file, but it does not say whether the application was approved or declined. It could look to creditors like you have been declined multiple times.
    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

  • What Young People Need To Know and Do

    As a young person, you should be extra vigilant with your credit file.
    Generation Y is responsible for more than one third of Australia’s total consumer credit defaults, despite making up 20% of the entire credit active population. Gen Y also has more personal loan and telecommunication defaults than any other generation, relative to population size. (Statistics from Veda Advantage)
    The system of credit we have is eager to suck people in but shows no remorse for people who fall off track. Young people have got to be wise and ensure they are making credit work for them, not letting it beat them.
    Your credit file lists personal details like name and address, but also any times you have applied for credit, any defaults (overdue accounts), court judgements, writs and bankruptcies.
    Many young people don’t realise how easy it can be to end up with a bad credit rating.
    Here are some of the typical situations where you can find yourself with a black mark against your name:
    Unpaid accounts: Any credit accounts or loans – including mobile phones and electricity that run over the due date are considered unpaid accounts. If they are not paid by the due date, creditors will make a note of it. If the account is not settled within 60 days from the due date, creditors can list this unpaid account or loan on your credit file as a default.
    Moving/traveling: If you move around a lot, the danger can be ending up with defaults on your credit rating due to unpaid accounts you were not aware of. Typically an account gets sent to your previous address and remains unpaid and then listed as such on your credit file. Consider a P.O. Box for all your mail or alternatively a parent’s address.
    Share accommodation: Any accounts which have your name on them, regardless of who intends to pay them are your responsibility – this includes rent. Sometimes people get caught out sharing houses, and someone leaves bills unpaid which then have dire consequences for your future.
    Identity fraud: Young people are increasingly victims of identity theft – and often it is someone they know. Typically, someone uses your identity to secure credit in their name – mobile phone accounts, credit cards, store credit – in some cases even mortgages. See our website for more information on identity theft and how it could affect you.
    To avoid the disappointment and embarrassment of finding out about your bad credit rating only after being declined credit, MY CRA recommend you check your credit file every 6-12 months to ensure there are no black marks against your name, just as you would check your bank statements or your super account.
    You can request a copy of your credit file for free from the major credit reporting agencies – Veda Advantage, Dun & Bradstreet or Tasmanian Collection Services (if you are Tasmanian). This will be provided within 10 working days – or for a fee it can be provided urgently.
    The consequences of a bad credit rating:
    A bad credit rating sticks. Many times you will find you are black listed from credit for a five year period following a default on your record. Even having too many credit enquiries or a default from a simple unpaid phone bill can be enough to be refused a home loan with most lenders in the current economic climate.
    Think of everything you want to achieve in the next five years. Maybe you would like to buy property, start a business, buy a motor vehicle, borrow money for travel, or even just take out a credit card. The chances of you being able to do this are greatly hindered with a bad credit rating.
    A clear and healthy credit file really is the ticket to financial freedom.
    How to repair your credit rating:
    If a credit file check does uncover some nasty surprises – it could be possible to repair the damage done by contacting MY CRA.
    If a default, writs or judgements has errors, has been entered unfairly, unjustly or just shouldn’t be there at all, we can help to remove the offending black mark and clear the file – something which you could find very difficult to do on your own.
    Most times a credit reporting agency will tell you that defaults are never removed, but can be marked as paid. You are then stuck with a dodgy credit rating for 5 years. But you shouldn’t have to put up with it, as it is possible to have many defaults removed.
    MY CRA has a 91.7% success rate in removing defaults on every case we take on. Usually the turn around is 21 working days though some can be longer depending on the difficulty of the case.
    But, prevention really is better, and cheaper than the cure.
    Credit reporting agency Veda Advantage suggests some further ways for young Australians to keep their credit rating clean:
    • Pay bills on time.
    • If people are having trouble paying, they should contact the organisation they owe money to, It may be possible to set up a payment extension system if people are honest about their situation. It is often the failure to respond to a bill or notify a business of your intention to pay that causes them to proceed to default stage.
    • Don’t take submitting credit applications lightly. Current legislation in place means organisations running credit checks can’t see whether or not an application was successful – all they can see are the number of applications.
    • Consider pre-paid mobile phone services.
    • Keep addresses and other details accurate and up to date to ensure credit providers are sending notices to the correct address.

  • First Telstra & Now Vodafone… What Privacy Protection Do We Really Have?

    Recently I blogged about Telstra allegedly breaching the privacy of some 200,000 clients by sending out letters to clients containing the details of other Telstra clients phone services and contact details.

    Now it seems, Vodafone have allegedly breached privacy also..

    According to a OAIC release, Vodafone have allegedly allowed personal and private Client information to have been available on a website which may have breached the Privacy Act.

    I am glad I am not a Vodafone client right now.

    MyCRA works everyday with clients that have defaults on their credit files and with hundreds of thousands of ‘reported’ cases of Identity Theft every year in Australia, this Vodafone issue is just what the organised gangs are after to steal more identities.

    The following excerpt is directly from the OAIC Media release:

    The Australian Privacy Commissioner, Mr Timothy Pilgrim, will investigate allegations that Vodafone has made the personal information of its customers available via an internet site.

    “Our Office takes all allegations of privacy breaches very seriously. All organisations should ensure the security of their customers’ personal information or risk breaching the Privacy Act and causing serious customer dissatisfaction and possible loss of business as a result,” Mr Pilgrim said.

    “The Office’s first step will be to determine whether Vodafone’s activities constitute a breach of the Privacy Act. I am concerned about the amount of personal information that may have been disclosed which could include sensitive information. For this reason I have opened an own motion investigation into the matter today. I have spoken with the CEO of Vodafone and he has assured me of Vodafone’s full cooperation,” Mr Pilgrim said.

    The Australian Privacy Commissioner also advised that if an individual believes their privacy has been interfered with they should first contact Vodafone and if they are not satisfied with their response they can make a complaint to the Office of the Australian Information Commissioner.

    If you have fallen victim to Identity Theft, firstly report it to the police and cancel any accounts that may have been affected.

    Once you have that area under control, Give MyCRA Credit Rating Repair a call and we can guide you through the process of removing any black marks that may have appeared on your credit file or credit rating as a result of the Identity theft Issue

    You can contact MyCRA Credit Rating Repair on 07 3124 7133 or www.MyCRA.com.au

  • How Do I Know What Is On My Credit File?

    You can check what is on your credit file in a number of ways.  If you have time on your hands, you can request a copy of your credit report for free from one of the credit reference agencies.  The request needs to be made in writing, and your credit report will take 10 working days from date of receipt to be sent to you.

    If you require it urgently, the credit reference agencies will charge you a fee of around $30, and generally your credit report will be despatched for you within one working day.  Below are links for credit reporting agencies:

    http://www.vedaadvantage.com/personal/mcf/my-credit-file.dot

    http://dnb.com.au/Credit_Reporting/Order_my_consumer_report/index.aspx

    http://www.tascol.com.au/reports.htm

    For more information on removing defaults or bad credit listings from your credit file, please have a look at www.MyCRA.com.au or call 07 3124 7133 for FREE info..