MyCRA Specialist Credit Repair Lawyers

Tag: Graham Doessel

  • Housing finance falls: ABS Statistics reveal drop for January

    Despite predictions housing finance would flatten or continue to show rises for January, Australian Bureau (ABS) Housing Figures January 2012 released today show the number of owner occupied home loans approved in January fell 1.2 per cent to 47,768.

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

    The falling of housing finance approvals follows a downwardly revised figure of 48,370 in December.

    Economists’ forecasts had centred on housing finance commitments to be flat for January.

    Here are the ABS’ Housing Finance January 2012 Key Points:

    VALUE OF DWELLING COMMITMENTS

    January 2012 compared with December 2011:

    ■The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.6%. Owner occupied housing commitments rose 0.8% and investment housing commitments rose 0.2%.

    ■In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 2.3%.

     

    NUMBER OF DWELLING COMMITMENTS

    January 2012 compared with December 2011:

    ■In trend terms, the number of commitments for owner occupied housing finance rose 0.8%.

    ■In trend terms, the number of commitments for the purchase of established dwellings rose 0.9% and the number of commitments for the construction of dwellings rose 0.4%, while the number of commitments for the purchase of new dwellings was flat 0.0%.

    ■In seasonally adjusted terms, the number of commitments for owner occupied housing finance fell 1.2%.

    ■In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 20.3% in January 2012 from 20.9% in December 2011.

     

    State by state breakdown

    Despite recordings overall showing a fall in numbers, the statistics reveal some Australian states fared better than others:

    Number of Owner Occupied Dwellings Financed – State (Tables 5 & 6)

    Between December 2011 and January 2012, the number of owner occupied housing commitments (trend) rose in New South Wales (up 275, 1.8%), Queensland (up 141, 1.6%), Western Australia (up 94, 1.5%), Victoria (up 31, 0.3%), the Australian Capital Territory (up 14, 1.7%) and the Northern Territory (up 2, 0.7%), while falls were recorded in South Australia (down 14, 0.4%), and Tasmania (down 1, 0.1%). The seasonally adjusted estimates fell in New South Wales (down 1,003, 6.3%), the Northern Territory (down 29, 8.3%) and the Australian Capital Territory (down 16, 1.8%), while rises were recorded in Western Australia (up 240, 3.8%), Victoria (up 117, 0.9%), South Australia (up 39, 1.3%), Tasmania (up 28, 3.2%) and Queensland (up 3, 0.0%).

    Where to turn when lending criteria remains tight

    When it comes to new home loans, being credit-savvy is one of the best ways to ensure people can ensure they have access to the best interest rates and or the loan that best suits their needs.

    Many do not know that Australians who are living with defaults on their credit file could potentially be hit with a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan due to the restrictions placed on lender availability.

    Many of the people that currently have negative listings on their credit file may be living with bad credit history unnecessarily.

    To find out how more people can remove their bad credit history – opening doors to lenders that were previously unavailable – contact MyCRA Credit Rating Repairs. Cick on the link to this short video to find out how a professional credit repairer can help you or your clients:

    Image: Salvatore Vuono / FreeDigitalPhotos.net

  • Australia’s medical records vulnerable to identity theft

    Australia’s medical records are proposed to go online, in the form of personally controlled e-health records (PCEHR). But there has been much concern over the security of the personal information which will be available online for potential hackers. We examine what this could mean for your identity and your credit file if your details were hacked.

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

    Personally controlled e-health records are currently the subject of a Senate Inquiry, with submissions currently being made into the PCEHR Bills.

    A few days ago, computer emergency response team, AusCERT, expressed its grave concern over the introduction of an e-health system. It told the Senate Inquiry that PCEHR will be wide open to hacking.

    The Australian covered this in its story ‘PCEHR open to hacking, says AusCert.’ An excerpt is below:

    “The current proposal by the Australian government to provide PCEHR over the internet will allow for the exposure of these records to theft and compromise,” AusCERT warned.

    “Online criminals have for many years been attacking PCs at work and home to gain access to the systems and data they desire.

    “There is no reason to think criminals won’t actively target these computers specifically for the benefits they may provide once the PCEHR system goes live (on July 1).”

    AusCERT said fraudsters will be only too keen to harvest “valuable” personal details including full names, dates of birth, current address and Medicare numbers.

    AusCERT’s biggest concern, is that the Federal Health Department cannot ensure the security of every computer using the system:

    It notes that the federal Health department “is promoting the benefits of PCEHR over the internet on the basis that it will be secure”.

    “These statements cannot be assured and are misleading,” it said. “If any end-user computer is already compromised by malicious software, the confidentiality of the PCEHR may be easily compromised…

    AusCERT said the department “appears to be focused on the security of the back-end systems” rather than the endpoint systems and software people will use to connect to the system.

    “At best this is misleading and at worst it is a misrepresentation of the level of risk,” it said.

    “The computer used to connect to the system can be anything from a smartphone, a home PC or laptop, an enterprise PC on a public or private network to a publicly used PC located in an internet kiosk or business lounge.

    “Since 2003 these ‘consumer’ devices have been effectively targeted for compromise typically by criminals for the purpose of identity theft and fraud, with the end result being access to personal identifying information and access credentials stored or processed on these devices.

    “If the computer has been compromised then it is impossible to protect the confidentiality of information.”

    AusCERT put out some alarming statistics from an Australian Communications and Media Authority report from 2010. The ACMA found that some 25,000-30,000 computers are compromised in Australia every day; annually that equates to about 4 million PCs.

    “Imagine if each of these computers had at least one user who had used it to access their PCEHR. That represents potentially millions of records compromised by online criminals.”

    MyCRA has been watching the unfolding of PCEHR with interest. The security of personal information should be a topic argued over extensively in this way whenever personal information is transferred to any form of online setting, and we are glad to see AusCERT has made these concerns known.

    In all instances it is so important for all Australians to be aware that when we are improving the access of personal information, that we are not trading off on the security of that personal information.

    There is the danger of possible data breaches from within any company or organisation, and as AusCERT warned, dangers of possible malicious hacking of personal computers – both of which potentially compromise a the personal information and the very identity of those consumers that use that service.

    Criminals do target home computers – as the ACMA statistics reveal.

    Sometimes fraudsters are lucky enough to gather enough information to resume someone else’s identity. Most times they can then go about taking out credit in the victim’s name, and most identity theft victims don’t even know about it until they attempt to take out credit in their own right and are refused due to a bad credit history they didn’t initiate.

    The problems don’t stop there. The identity theft victim can be in a world of pain trying to recover their good name. Bad credit history is not easy for anyone to clear – let alone the identity theft victim, who would be required to produce police reports and other documentation to prove to creditors they are not responsible for the bad credit history.

    The Government’s Stay Smart Online website offers some ways you can protect your home computer from being compromised by malicious software, or any kind of identity theft attempt. Here is their secure computing checklist:

    1. Use only supported operating systems
    Vendors, including Microsoft, stop supporting operating systems that become dated. New versions offer improved security. Third-party vendors, which make application software for these operating systems, also stop support of older versions.

    2. Enable automatic updates of your operating system
    Automatic updates install small corrections to the operating system. These corrections are known as patches and include security and functionality improvements. When you enable the automatic installation of the fixes, you reduce the chance of exposure to security threats.

    3. Enable a limited-rights account for each user and use it for routine online activities such as browsing the web and reading email
    It is important to use a limited account for daily tasks as many malware authors depend on users running administrator (or privileged user) default accounts.
    Operating as a limited user greatly reduces the effectiveness of many types of malware but this does not mean limited users are protected from malware completely.

    4. Install and update security software that provides functionality for antivirus and anti-spyware software and a personal firewall.
    These products help prevent computers from infection by malware. Make sure that they are configured to update automatically. Do not install more than one product that duplicates any of these functions. Either install a product that combines these functions, or install separate products for each of these functions. For example, install a combined antivirus and anti-spyware product and a separate firewall product.

    5. If using broadband, turn your computer off when not in use.

    6. Secure your email software
    One method of compromising your computer is via email. If you secure your email software, then you greatly reduce your chances of being compromised.

    7. Secure your web browser
    Another risk to your computer is during web browsing. If you secure your web browser, you can reduce the chance of your computer being compromised.

    8. Do not click on links or open attachments in spam email or email that is otherwise suspicious.

    If you, or someone you know has been a victim of identity theft it is important to check your credit file. This will determine whether you have bad credit history as a result of identity fraud. Contact MyCRA Credit Rating Repairs for help with your credit file, and repairing any bad credit history from identity theft.

    PH tollfree 1300 667 218 or info@mycra.com.au or visit our website for more information www.mycra.com.au.

    Image: Stuart Miles / 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

  • How healthy is your credit rating?

    Your credit rating is just like your health.  You can get regular check- ups and maintain it, or you can wait until something goes wrong before you get it fixed. Knowing what’s on your credit file is the key to your financial freedom. Maintaining that credit file health will ensure you are able to continue to enjoy the benefits of obtaining credit now and for years to come.

    Graham Doessel, founder and CEO of national credit repair firm MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au addresses some common questions about your credit file.

    WHAT is my credit rating?

    Your credit rating is really a file on your credit history, and is collated by the major credit reporting agencies on anyone who has ever been credit-active.

    Your credit file is then checked by any credit provider and is used to assess both the amount you are able to borrow and your ability to repay the loan.

    How do I find out what’s on my credit file?

    There are four major credit reporting agencies in Australia: Veda Advantage – which holds the credit file of over 14 million Australians, Dun and Bradstreet, Experian Australia and Tasmanian Collection Service (TASCOL) if in Tasmania.

    By law you are entitled to write to or email one of these agencies and request a copy of your credit file for free. It will take 10 working days from application to receive this information, or for a fee it can be provided within 3 working days.

    What is defined as a ‘bad’ credit rating?

    In broad terms, any defaults, clear outs, court Judgments or writs, external administrations and bankruptcies 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 bad credit history.

    How do I get a bad credit rating?

    What is not realised by many people is how easy it is to have a default slapped on your credit file – which will show up as bad credit history.  If a bill is more than 60 days late, (including rates, power and mobile phone bills) then a credit provider has the right to notify you of their intentions to record this default on your credit file. Even if this bill is paid, the default usually remains on your record for 5 years.

    What are the repercussions of having a bad credit rating?

    A bad credit file can severely hamper your chances of obtaining any credit. Your credit health can determine whether you can take out credit cards, personal loans, car loans, enter into mobile phone plans, and of course take out a mortgage.

    What can I do to fix my credit rating?

    After checking your credit file, there are three things to consider:

    1. The accuracy of the report.  If there are errors, however small, you have the right to have them rectified.  Likewise, if there are numerous strange defaults and or applications for credit that we don’t recognise – contact Police immediately in case of identity theft.

    2. Check you were informed of any intention to list.

    3. Check the fairness of the listing.

    If your file does contain defaults, writs or judgments that you believe are incorrect, unjust or just shouldn’t be there, there is a good chance they can be removed.

    You can work with your own credit file to have the defaults removed, or you can contact a third party ‘professional credit repairer’ to help you.

    How can a professional credit rating repairer fix my credit rating?

    If people find inconsistencies on their credit report, in the past they have run into difficulty trying to get the offending black marks removed.

    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. Many individuals find it extremely difficult to apply the letter of the law in their own circumstances and so end up seeking someone out a professional credit repairer, who can work on their behalf.

    Credit repair requires knowledge of the legislation, lots of evidence, tenacity and perseverance – which a good quality professional credit repairer will have.

    Professional credit repairers have also built successful relationships with agencies and creditors alike, and have a better ability to negotiate the listing’s removal on the client’s behalf.

    What can I do to ensure I maintain credit file health?

    1. Pay all accounts on time. This is the easiest way to ensure there are no adverse listings on your credit file.  If you are struggling to make repayments – contact the creditor about a repayment scheme.

    2. Regularly obtain a copy of your credit file – once a year is recommended to ensure accuracy.

    3. Be aware of excessive credit enquiries. If you are not sure about your credit health, you should get it checked before applying for new credit.  Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year. Also avoid ‘shopping around’ for credit, as whether or not the loan was approved doesn’t show up on your credit report – only the fact that you made the enquiry.

    If you are seeking advice on credit file health from a professional credit repairer, contact MyCRA Credit Rating Repairs on www.mycra.com.au or tollfree 1300 667 218.

    Image: Imagerymajestic/ FreeDigitalPhotos.net

  • FREE paper shredder and Identity theft kit to all new MyCRA clients

    Identity theft is the fastest growing crime in Australia, and it is one which can DIRECTLY lead to a bad credit score.

    If fraudsters are able to assume someone’s identity, they may be able to take out credit in the victim’s name – leaving them with a long list of defaults they have to PROVE they weren’t responsible for!!!

    It is essential that all credit file holders safeguard their personal information and protect themselves from identity theft, preventing an unnecessary bad credit score.

    For this reason, MyCRA Credit Repairs are GIVING AWAY paper shredders, and with that, an extensive 5-page Identity Theft Kit, plus a quick one-page questionnaire to help clients get up to speed with where they may be lacking in identity theft security.

    The paper shredder, the Identity Kit and the questionnaire will be available to any clients who sign up with us today and pay a mimumum $200 non-refundable payment.

    The full $200 will be credited directly to the client’s credit repairs costs.

    No client should put up with what a bad credit score does to their life if they don’t have to!

    If there are inconsistencies on a person’s credit file there is a good chance they can be removed.

    In the past, MyCRA has achieved up to 91.7% default removal of all cases we take on…could this be you or your client?

    So START NOW and get on board TODAY to receive this unique offer – we are saving a client’s credit file now, as well as the clear credit file they will have in the future.

    Limited numbers apply, and only for a limited time.

    Thanks – Graham Doessel, MyCRA Credit Repairs, www.fixmybadcredit.com.au

    Terms and conditions apply – see us for details.

     

    Image: Chris Sharp / FreeDigitalPhotos.net

    Image: David Castillo Dominici / FreeDigitalPhotos.net

     

     

  • Comprehensive credit reporting could mean more consumers refused credit

    Comprehensive credit reporting has again come under the spotlight for its potential advantages and disadvantages for lenders and consumers alike. We look at what you should be watching out for with your credit file when the comprehensive credit reporting regime is instigated in the near future.

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

    Last week, Head of Legal at Veda Advantage, Olga Ganopolsky defended the incoming positive credit reporting regime in Broker News, claiming the new laws would help to alleviate consumers inaccurately reporting their credit situation to lenders.

    Ganopolsky argued that the wider array of information available in the new reporting regime will enable lenders to make more informed risk decisions. She claimed the regime carried a “strong link to responsible lending”.

    “When research is done on bankrupts, the astonishing results were that more than 95% of people in bankruptcy were applying for credit virtually on the eve of bankruptcy. A lot of even solid credit individuals don’t provide accurate credit information. Just under 20% of people don’t accurately report,” Ganopolsky said.

    Critics of the regime say it violates consumers’ privacy and places the burden of proof on consumers should lenders make a mistake. And though Ganopolsky claimed the regime would enable more responsible lending decisions, NSW Consumer Credit Legal Centre director Karen Cox has pointed out that a positive credit reporting regime existed in the United States during the subprime mortgage crisis,” Broker News reports.

    The introduction of additional information onto consumer credit reports in Australia is unfortunately not going to impact consumers in a ‘positive’ way.

    Unfortunately, the new comprehensive credit reporting regime just opens another door for creditors to inaccurately report information on consumer credit reports – but this time there is no forewarning.

    The information can be recorded if payments are one day late. One of the major issues we have with the proposed new laws is the ability for creditors to list late payments on a person’s credit file.

    Under current Australian credit reporting legislation, late payments are not noted on a person’s credit file until they pass to the ‘default’ stage – which is more than 60 days in arrears.

    The creditor is also bound to fulfil a series of requirements to give the consumer the opportunity to rectify the situation before listing the default – and are bound to notify the consumer of their intentions to ultimately ‘list’ the late payment of 60 days or more as a default on the consumer’s credit file.

    This legislation will remain, but the Government also proposes the introduction of the ability for creditors bound by the NCCP to make late payment entries on a person’s credit file if their payments are late even as little as one day.

    So all the rigorous Australian credit reporting laws for listing defaults remain, except a creditor can now tarnish a person’s credit file with late payment ‘notations’, which would surely have a big impact on their ability to obtain credit. If the late payment of a few days is due to delays in bank processing of transfers or direct debits, paying at Australia Post, BPay etc. – these things are beyond the control of the average consumer yet that is exactly who will get hurt.

    There can be a host of reasons why a consumer makes a payment late – illness, holidays even simply the mail going astray – but we don’t believe this reflects unduly on the consumer’s ability to service a loan – but will it?

    In these harsh economic times, any negative listing impacts a person’s ability to get a home loan. Even excess credit enquiries. So the ‘noting’ of late payments on a person’s credit file could mean they are refused credit.

    Creditors make mistakes every day when it comes to listing defaults and other official ‘negative’ listings on credit files. Luckily the consumer has an extensive legislative framework and system of redress should the creditor get it wrong and their credit file happened to be reported unfairly or inaccurately.

    Who is going to be the watchdog when it comes to these late payment ‘notations’? As is currently the case, it is up to the consumer to check the accuracy of their own credit file. What system of redress will be in place if they find a creditor has listed a ‘late payment’ on their credit file unfairly or incorrectly?

    We guess the old adage will remain – consumers will continue to be responsible for the information that is reported about them by creditors on their credit file.

    With this in mind it will continue to be essential for consumers to check the accuracy of their own credit file on a regular basis – and particularly before they apply for any credit.

    Refused credit? We can help!

    For more information on your credit file, or to obtain a free copy of your credit file, contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit www.fixmybadcredit.com.au.

    Image: Ambro/ FreeDigitalPhotos.net

  • They’re back…..MICROSOFT PHONE SCAM WARNING

    Fraudsters are AGAIN targeting people with home computers and calling with an offer to fix viruses supposedly on their computers. Don’t get caught out! We explain what that scam involves, and how falling for this scam can lead to loss of monies, identity theft and ultimately a bad credit score.

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

    In June last year we warned you about a ‘Microsoft phone scam’ which was rampant in Australia. Fake computer security engineers were contacting people by phone, offering to fix’problems’ they had detected on their computers.

    Callers claiming to be from ‘Windows technical support’, who knew the victim’s name and address were claiming to see problems with the victim’s computer and asking whether the victim had noticed their computer becoming slower recently.

    Then they were asking to take over the machine and fix the problems.

    A warning from the government’s Stay Smart Online alerts today reveals this scam is still continuing to swindle unsuspecting computer owners. The scammers are using legitimate remote access sotftware, such as LogMeIn, TeamView and Ammyy.

    The ACCC’S SCAMwatch website also warned consumers about the dangers of this scam back in June 2010.

    “There are many potential dangers. As well as losing money to the scammer by paying for a service that provides you no benefits, your personal and banking details are also at risk. If you give a scammer remote access to your computer, they can cause all sorts of mischief – including infecting your computer and acquiring your personal information,” the website says.

    When a fraudster is able to access our personal information they can do a host of things with it, including using it to commit identity theft. Creating fake ID, they are then able to take out credit in our name, having no care for the bad credit score they are leaving behind for the victim.

    How it occurs:

    We generally have no knowledge of the identity theft until it is too late, and we have a series of late payments against our name, which ultimately go to default stage.

    Some identity theft victims can have a string of bad credit that shouldn’t be there, but which ruins their financial future – as they show up with a bad credit score. They can’t get a loan, they can’t get a credit card, they can’t even take out a mobile phone plan or get utility account.

    If you do suspect you have been scammed, firstly you should report the potential identity theft to the Police. There is going to be no way of repairing your bad credit score without Police reports.

    Secondly, obtain a copy of your credit file, to ensure you do not already have a bad credit score resulting from identity theft. A copy of your credit file is free once every 12 months from one or more of the credit reporting agencies in Australia.

    It may also be a good idea to more regularly request a copy of your credit file. You can even alert credit reporting agencies, and your financial institution that you may be subject to identity theft, and they can ‘flag’ your accounts to alert you to any suspicious entries.

    If you do find you have a bad credit score due to identity theft, you should contact a professional credit repairer. They can help you recover your good name in the least possible time, with the most knowledge of credit reporting legislation and with the best ability to negotiate with creditors on your behalf.

    What to do to protect yourself from this phone scam

    Microsoft Australia released a statement last year, warning Australians about these fraudsters, who conduct themselves in a professional manner, and sound genuine.

    They gave this advice to Microsoft customers:

    • Be suspicious of unsolicited calls related to a security problem, even if they claim to represent a respected company.
    •Never provide personal information, such as credit card or bank details, to an unsolicited caller.
    •Do not go to a website, type anything into a computer, install software or follow any other instruction from someone who calls out of the blue.
    •Take the caller’s information down and pass it to the authorities.
    •Use up-to-date versions of Windows and application software.
    •Make sure security updates are installed regularly.
    •Use a strong password and change it regularly.
    •Make sure the firewall is turned on and that antivirus software is installed and up to date.

    Visit our website, www.mycra.com.au or call us tollfree on 1300 667 218. MyCRA Credit Repairs is a professional credit repairer that can help with repairing your credit file following identity theft, or give you more information to safeguard your good name.

     

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

  • 8 things you need to know before making a home loan application

    In the 21st Century, ensuring approval on a home loan application can be complicated. Not only are savings, income and debt level all taken into consideration, but also if the person has a bad credit history. We tell you 8 things you should take into consideration before submitting a home loan application.

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

    1. Savings.

    Today’s mortgage market is much more conservative, and you may require more savings than you did, say 5 years ago.

    People with a lower income or who have more debts may be required to save closer to 10% deposit -and should enquire with a lender on where they stand in the current market.

    2. Income amount.

    The amount of income required is generally determined by the amount of income earned relative to debts and expenses.

    So, the more you earn, and the fewer debts you have, the more you will be able to borrow. If you are on a lower income, it may be worth paying off existing debts before submitting a home loan application. Also, the more deposit you have saved, the lower the income requirements on the same loan.

    3. Stable employment.

    The lender will also want to be assured of a stable income – they want to see evidence of a stable amount with a stable employer.

    Generally lenders are requiring 6-12 months with the same employer. So if you’re thinking about buying a home, best to think twice about changing jobs, even if the wages are significantly better in the new position.

    4. Debts and Credit limits.

    The lender will generally assess your debt level to determine the amount you are able to borrow. Reducing your debt can increase borrowing power.

    ‘Debt’ also includes the credit limits which are present on any credit cards or line of credit loans you may hold.

    So if you have a credit limit of say $20,000 on your credit card, the debt amount on that card will be stated as $20,000, regardless of the actual amount owing on the card.

    With this in mind, it might be a good idea to reduce any credit limits on cards or loans prior to a home loan application.

    5. Credit file checks.

    The lender will perform a routine credit file check on you to make sure there are no negative listings. This can be a default, clear out, Judgment, Writ or bankruptcy which was placed on your credit file by a creditor.

    The most common type of negative listing is a default, which can be placed on your credit file if you fail to make repayments on any form of credit past 60 days. This includes unpaid telecommunications and utilities bills.

    Defaults and Judgments remain on your credit file for 5 years, with clear outs, Writs and bankruptcies showing for 7 years.

    Most of the major lenders will refuse to lend to you if you have a bad credit history of any kind. In fact, you would probably have difficulty even getting a mobile phone plan.

    6. Excess credit enquiries.

    Whenever a person other than you makes an enquiry on your credit history – that enquiry is recorded your credit file. Currently, Australia is under a negative reporting system, so there is no way of seeing on your credit report if the loan was approved or not, only that the application was made.

    Some lenders are refusing applications due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    Ensure when you enquire about any home loan, that the lender is not making an actual application on your behalf until such time as you want to make it official.

    7. Obtain a free copy of your credit report

    If you intend to purchase a home within the year you should request a copy of your credit report. Under Australian law, this report is free every 12 months.

    There are 4 credit reporting agencies in Australia, Veda Advantage, Dun & Bradstreet, Tasmanian Collection Services (if in Tasmania) and new entrant Experian. You can obtain your credit report from one or all of these agencies. The report will be mailed to them within 10 working days of the request.

    It is essential for you to know what is being said about you on your credit file before applying for a home loan.

    There is the potential for creditors to make mistakes with your credit file. So if you are credit active you should check your credit file, regardless of how diligent you believe you are with repayments.

    8. Repair bad credit history.

    If you find listings on your credit file that contain errors, or simply should not be there, current legislation allows you to have those inconsistencies rectified.

    Defaults can be amended and marked as paid if the account has been settled, but this may not be enough to ensure finance approval.

    Unfortunately bad credit history is not cleared by creditors unless you can provide adequate reason and lots of evidence as to why the listing should not be there.

    If you have neither the time, knowledge or patience for credit repair you can seek out a professional credit repairer who will be able to work on your behalf to negotiate with creditors to have the negative listing or default removed.

    A clear credit record will allow you to choose the best loan for you, with the best interest rate.

    Contact MyCRA Credit Repairs for help in getting your bad credit history sorted out – call tollfree on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: vichie81/ FreeDigitalPhotos.net

  • Financial hardship biggest reason for complaints to Credit Ombudsman

    Financial hardship cases are reportedly the biggest single cause of complaint to The Credit Ombundsman Service. This is where a consumer claims the creditor has issued defaults for late payment of accounts without considering the consumer’s claim of financial hardship. We look at why this is occurring, and what people can do in circumstances of financial hardship to ensure they do not receive a bad credit score from creditors.

    By Graham Doessel, Founder and CEO of MyCRA Credit Repairs and www.fixmybadcreditcom.au.

    The Credit Ombudsman is continuing to be flooded with complaints. COSL’s annual report for 2011 released early this month showed a 72% increase in complaints from 2010, with financial hardship cases continuing to feature as the single largest source.

    Mr Raj Venga, Credit Ombudsman, attributed the significant spike in complaints received by his office to an increase in consumer awareness, and changes to legislation requiring lenders to enter external dispute resolution processes.

    “Regrettably, 34% of all complaints we receive relate in some way to financial hardship, specifically the failure of a lender to agree to a payment variation on grounds of financial hardship. This level of financial hardship complaints is similar to previous years and we do not anticipate a reduction in the forseeable future,” Mr Venga says.

    “The underlying causes of the financial hardship complaints we see are unemployment or reduced income (30%), cost of living, including other debt (21%), followed closely by illness of the borrower or their family member (19%), business failure (14%), interest rate increases (8%), relationship breakdown (7%) and natural disasters (1%)” observed Mr Venga.

    Broker News featured more on Mr Venga’s take on financial hardship issues, in its story ‘Hardship complaints show no signs of easing’. Venga says some lenders issued defaults too quickly.

    “We achieved a satisfactory outcome for the consumer in 46% of the financial hardship cases we closed. This suggests that not all lenders are, before issuing default notices or commencing enforcement action, properly considering the possibility that the borrower may be in financial hardship and whether a change in the borrower’s payment obligations may be appropriate in the circumstances,” Venga said.

    Creditors can be eager to issue defaults, and it is essential there is a system of redress for consumers – particularly when in times of financial hardship their requests are ignored.

    A bad credit score can be debilitating for the consumer for years after the event, with defaults remaining on a person’s credit file for 5 years from the date of listing. People are generally unable to even get a mobile phone plan let alone loans or mortgages.

    Applying for financial hardship

    If a person’s circumstances change due to unemployment, illness or some other reasonable change in circumstances, they should ask their lender for a hardship variation.

    Money Help, a website run by the Victorian State Government offers some help on how to apply for hardship with creditors in the correct way.

    “If you wish to ask for hardship consideration, it is always better to put your request in writing as this means you can keep a copy of the request as a record. It is more difficult to prove the details of a request made by phone. If you entered into your loan agreement after July 1 2010, or if your debt relates to a credit card, then your credit provider must respond to you within 21 days of your application.”

    Money Help advises people to work out what they can afford to pay prior to requesting a hardship variation. They explain the benefits in applying for hardship can range from more affordable payments, to putting a stop on action towards defaulting your credit file.

    Our extra tip is for people to make it clear to the creditor what they are requesting. It would be a good idea to specifically request a ‘financial hardship’ variation to their repayments – in writing, so there is no confusion.

    What about if the creditor refuses to agree to a hardship variation?

    Creditors are legally required to consider a person’s request for variation on payment arrangements, but are not obliged to agree to any hardship variation proposal put forward. This is the grey area that finds complaints being put forward to COSL in more frequency.

    If a lender either refuses or fails to respond to are hardship request within 21 days, (or a shorter time if the situation is urgent) consumers can lodge a complaint with the credit provider’s independent dispute resolution scheme.

    What about if the creditor has already issued a default?

    If a default has been issued which consumers believe is unjust, unfair, in error or shouldn’t be there, people have the right under Australian credit reporting legislation to have the inconsistency rectified.

    The problem with seeking redress as an individual is two-fold. Firstly, without extensive knowledge of credit reporting legislation it can be difficult to enforce ruling that creditors are bound with without knowledge of what the rules are.

    Secondly, people negotiating on their own behalf can be problematic in many cases. People have often attempted to remove the default themselves, and have been told defaults DONT EVER get removed. The best they can do is mark the listing as paid (if it’s been paid).

    This may be both unfair for the consumer and is generally insufficient to ensure credit is obtained with some lenders.

    Alternatively, a professional credit repairer works with creditors to negotiate on the consumer’s behalf and work for the best outcome based on the creditor’s compliancy with the current legislation. They will also look at any other extenuating circumstances to determine if there is an avenue that can be investigated which results in having the listing removed.

    Contact us for more information at www.mycra.com.au or tollfree on 1300 667 218 for consultation with a professional credit repairer.

  • Protect your credit file when co-borrowing for a home

    Got some savings, want to start in property but can’t afford a home loan on your own? You are part of a growing trend of Australians who are seeking out home buying ‘partnerships’ to get into the property market. We look at how this is happening, and what you should be aware of to protect your clear credit file when entering into this type of joint debt arrangement.

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

    In Broker News yesterday, it was noted there has been an increase in the number of first homebuyers partnering up to buy property. BN reported research from Mortgage Choice revealing up to two-thirds of first homebuyers will be planning to buy with someone else. De facto couples, friends, relatives and even work colleagues have been entering into home buying partnerships  to be able to afford property:

    “Sharing a home loan commitment with one or more people provides borrowers with the opportunity to split the cost of the property and the associated expenses, so that loan repayments are noticeably less than what they would be if they were buying solo. Another benefit is if the combined funds equate to a deposit of 20% or more of the purchase price, it will negate the need for lenders’ mortgage insurance,” company spokesperson Belinda Williamson said.

    But with those benefits come some things to be wary of. Some of us are great with money and some of us aren’t. If one of each type get together – the potential for both to be financially damaged is greatly increased. As credit rating repairers, every day we meet people who need help with fixing credit rating issues due to the financial shortcomings of a partner.

    De-facto couples

    When de-facto couples decide to take out a home loan together, as with married couples there can be many ways that joint debt can go wrong. Living together can increase the risk of credit file damage, just through the sheer volume of credit accounts that one or the other or both needs to be responsible for. The lines can get blurred, and if things go bad, joint debt can be difficult to fix. Very often one partner ends up with a bad credit score, simply because the other person on the account has not made repayments to the account. Often people are unaware their partner is generating defaults on their credit rating until it is too late. They apply for credit in their own right and are refused.

    Relatives

    Family joint debt can go really well, or really badly. There is generally a large element of trust. But as with de-facto couples emotion can get in the way of good business sense. People can make promises out of love without official documentation. If things go badly, it can not only damage the financial futures of the parties involved, but break down the family.

    Friends and work colleagues

    If the financial relationship is ‘strictly business’, it may be easier to separate the home loan from all other credit the individuals may possess. This is especially true if the property is purely an investment and neither person is living in the property.

    What happens if it all goes wrong?

    When we take out a home loan with someone else, and even rates, utility and phone accounts, we are very reliant on the partner to keep up their end of the credit repayments.

    A bad credit score due to a default (late payment of account past 60 days) lasts for 5 years, a ‘clearout’ listing is 7 years. During this time it is near to impossible to get another home loan, or credit card, or even a mobile phone plan while this negative entry appears on your credit report.

    So many times we hear clients say “I’m not sure how this happened – how can my clear credit file be damaged by something someone else did?”

    Unfortunately with any joint debt, both credit files are at risk if repayments aren’t made.

    How can I cover myself and my credit file?

    Here are some ways we can enjoy the benefits of getting into a home loan partnership without the pitfalls that could crop up for our credit file:

    1. Know about your new financial partner’s past credit history. People will do what they have always done. If they have financial skeletons in the closet we should be wary about leaving our credit rating at risk.

    2. Ask what debts they currently have. This will give you an indication of how they feel about money, and how much debt they consider normal to handle. Does this match with yours?

    3. Talk about paying bills. Do they always pay them on time? If not, why not? This will give you a good indication of how this person regards money and credit repayments.

    4. Ask what their financial goals are for the future. Do they match yours? If you intend to hold on to the property whilst the partner intends to sell in a few years to repurchase, are you prepared to pay them out? Will anyone be living in the property? How will you divide expenses on the property?

    5. Verify their answers about existing and past debt. Ask them if you can see a copy of their credit file. A copy of your credit report is free every year from one or more of the credit reporting agencies in Australia. It will be sent within 10 working days.

    6. Get all agreements in writing. Consider getting a solicitor to draft something up if necessary.

    “Clearly putting the ground rules in place from the start, preferably with the assistance of a solicitor drawing up a formal agreement, will go a long way to ensure all parties acknowledge their responsibilities and agree on unexpected contingencies,” Mortgage Choice’s Ms Williamson said.

    7. Leave emotion out of it. As much as you may be friendly with or even love the person you are buying the property with – people fall out. As much as possible try and detach your emotions while entering into the ‘business transaction’ you are making, so that if something does go wrong between you, your clear credit files remain intact.

    For more information on fixing bad credit or protecting your credit file, contact us at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: savit keawtavee / FreeDigitalPhotos.net

  • What you may not know about taking out credit in Australia

    Many Australians are very unaware of what happens behind the scenes when they take out credit. We break it down and show you what it involves, and how your good name and ability to continually obtain credit all  hinders on what creditors say about you on your ‘credit file’.

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

    What is being ‘credit active’?

    When you take out your first piece of credit – you become ‘credit active’. This could be a mobile phone plan, a loan with a bank, a credit card, or even a utility account. The creditor opens up a credit file in your name with one or more of Australia’s credit reporting agencies – Veda Advantage, Dun & Bradstreet, Tasmanian Collection Services TASCOL (if in Tasmania) or new entrant Experian Australia.

    What is on my credit file?

    Your credit file details all of your personally identifiable information including full name, date of birth, current address and also the type of credit that has been taken out now and in the past. Also recorded, are any times you have applied for credit ‘credit enquiries’ and any negative notations put there by creditors during the course of the credit agreement.

    What is a credit rating?

    Your credit rating is a term used for what happens when a potential creditor makes a request to see what is reported about you on your credit file. The creditor uses the information on your credit file to determine the amount you are able to borrow and your ability to repay the loan.

    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 get a bad credit rating?

    If you fail to make repayments on any credit account past 60 days, then by Australian law the creditor has the right to notify you in writing of their intention to list the non-payment as a default on your credit file. This default remains present on your credit file for 5 years, after which time it drops off. If the creditor can’t contact you, and suspects you have left the premises or tried to avoid contact – they may list the non-payment as a ‘clear-out’ which means you would incur 7 years of bad credit.

    How do I know if I have a bad credit rating?

    Most people know they have a bad credit rating, because the creditor has advised them in writing that they intend to list something negative on their credit file. But many times, people are not aware they have a bad credit rating until they apply for a loan and a ‘surprise’ default or clear-out shows up.

    If you are unsure what is on your credit file, you should take the time to find out.

    The three major credit reporting agencies in Australia hold the credit file of millions of Australians. Veda Advantage alone holds over 14 million credit files.

    You can write to or email one of these agencies and request a credit report, which is a copy of your credit file.  If you are not in a hurry then under Australian law your credit report is free, and will be sent within 10 working days from application to receive this information. There are further charges for a faster service with many agencies.

    I have found a default 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. Even if this bill is paid and noted on your file, this default usually remains on your record for 5 years and will be a detriment to any further credit you wish to take out during this time.

    What can I do to fix the default on my credit rating?

    Once you have obtained a report there are three things to consider about the negative listing:
    1. Is it accurate?
    2. Was I informed?
    3. Is it fair?

    If the report contains errors, or inconsistencies with the credit reporting process, be aware you do have the right to have errors rectified.  Creditors do make mistakes in credit reporting. The way we handle it can be make-or-break for our good 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 be both unfair and may not be sufficient to ensure credit is obtained with some lenders.

    Can I employ someone to fix my bad credit?

    If you have a default, writ or Judgment that has errors or just shouldn’t be there – there is a good chance that a professional credit repairer can actually remove it – meaning your financial future is looking a whole lot brighter.

    A professional credit repairer works with creditors to negotiate on your behalf and work for your best outcome based on the creditor’s compliancy with the current legislation. They will also look at any other extenuating circumstances to determine if there is an avenue that can be investigated which results in having the listing removed.

    Can I make positive changes to my credit file?

    As the legislation currently stands in Australia, there is no way of off-setting bad credit history with ‘good’ credit history. Currently only negative entries are recorded – so you are considered to have good credit history if your credit file is essentially clear.

    Australia is moving towards a form of positive credit reporting this year – but we believe banks will still not take kindly to any form of negative entry on a person’s credit file in this current economic climate.

    How do I keep a clear credit rating?

    To avoid a bad credit rating, it is essential to make repayments on time! If there is a problem with a bill, you still need to pay it on time. If there is hardship and you are finding repayments difficult, tell creditors. Most creditors have policies in place to assist with financial difficulties – but you must tell them to be eligible for this.

    Keep your contact details current with your creditors so if there are problems they can contact you.

    And make sure there are no mistakes on your credit file…

    The best thing every credit-active person can do is to keep abreast of what is being said about them on their credit file with those free yearly credit file checks. This way, if there’s anything that appears on there that you are not sure about, you can look into it and get your credit file cleared if it should not be there BEFORE you front up to apply for any new credit.

    If you have a bad credit rating, go through these 6 simple steps to see whether you may qualify for credit repair, or contact us tollfree on 1300 667 218 or visit our main website www.mycra.com.au :

    Image: vichie81 / FreeDigitalPhotos.net

    Image: renjith krishnan / FreeDigitalPhotos.net

  • Valentine’s Day blues. What you need to know about your credit rating when love goes bad

    There are many people on Valentine’s Day who are falling out of love, not in love. If you are going through a divorce or separation, we provide 10 steps to financial separation and show you how to keep your clear credit file from being dumped along with the relationship.

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

    Savingsguide.com.au had a fantastic Valentine’s Day article titled Post-Relationship Credit, about what to do with your finances when you divorce or separate. It inspired us to let you know how that separation can affect your credit rating.

    If you are in the middle of a separation, it is essential to look forward into the future to ensure that it does not impact on your credit rating and lead to a bad credit score.

    Emotions are running high – and sometimes tempers as well. People often use financial ties to deliberately hurt one another.

    The most important and sensible decision the two of you can make during the separation is to cut all financial ties and as early in the separation as possible.

    Don’t hold on to joint accounts and assets ‘just in case’ you reconcile. Even the most amicable of separations can potentially turn sour down the track. The sooner you make the break, the better off your future will be – even if you do decide to get back together in the future.

    As far as creditors are concerned if the debt is in both names, then you are both responsible for it regardless of who accrued it.

    For them, there is no such thing as a broken heart, just a broke person. Your aim should be to clear that debt and repair your credit rating as soon as possible.

    10 Steps for financial separation

    If you have just left your partner or spouse, here are 10 steps to financial separation you should take as early as possible in the break-up to keep your clear credit file. If these steps can be accomplished together, you can both get on with your lives as individuals without a bad credit score:

    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 judgements. 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. However, dealing directly with creditors could be problematic, they will tell you that defaults are never removed but can be marked as paid. However, at the moment even ‘paid’ black marks against your name can be enough for credit refusal, particularly if you are trying to buy a new property on one income.

    A professional credit repairer can check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, advising the creditor to remove the default.

    For help with fixing credit problems following your divorce or separation, contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit our main website www.mycra.com.au.

  • Job and employment scam: Identity theft revealed at Shock Entertainment

    Music company Shock Entertainment’s new GM, Scot Crawford has revealed today he has been a victim of identity theft and has warned readers scammers are trying to steal personal information under the guise of employment for the company. We look at the details of this scam, how to recognise job and employment scams and how falling for them can lead to identity fraud and potentially a bad credit score for years to come.

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

    themusic.com.au reports:

    Shock sent out a media release today alerting that despite a lot of changes in the music company recently, “the current emails circulating from newly appointed General Manager Scot Crawford offering $1500 a month for a few hours work a day is an unfortunate case of on-line identity theft.”

    The emails are coming from a bogus gmail account – by an individual pretending to be the General Manager.

    The emails read, “This is Scot Crawford from Shock Entertainment, you have recently bought an item from us. I am recruiting a few people, from our recent customers for a payment processing team in Australia. The average income is around $1500 per month. Drop me a line if you’re interested and available 1 – 2 hours per day.”

    The offer seems – and is – too good to be true.

    The emails were circulating over the weekend and Shock have advised that police have been informed about them.

    Crawford said today, “It’s a pretty lousy situation to be in, but is being addressed by the police and we are expect a speedy resolution.”

    How job and employment scams operate:

    The ACCC’s SCAMWatch website warns against job and employment scams:

    “Job and employment scams target people looking for a new job or a change of job. They often promise a lot of income (sometimes they even guarantee it) for not a lot of work.

    You should be very careful of someone who uses spam email or ads posted in the street to employ people. They are often only interested in earning money from you!”

    SCAMWatch encourage job seekers to do their homework before responding to an advertisement guaranteeing employment or a certain income:

    “ask yourself why somebody would use spam emails to recruit people? Is the company reputable and well-known? Could the offer be part of a scam?   Very few, if any, reputable businesses offer guaranteed jobs or income through spam emails. Any job offer you receive through a spam email is likely to be a scam. For other types of advertising, you should still be very careful.”

    They also warn job hunters to do their homework on even seemingly legitimate job advertisements:

    Find out what the job actually involves and what evidence they have to support their claim that you are guaranteed a certain level of income. You should check with your fair trading agency who might be able to help you decide if the offer is legitimate.”

    Job and employment scams – how falling for them can damage your clear credit file:

    When a person falls for a job and employment scam, they have generally answered a ‘job ad’ possibly giving over a resume containing a significant amount of personal information to fraudsters – including potentially the victim’s full name, date of birth, address and past employment history.

    Personal information which could allow fraudsters to commit identity theft. There is no telling how much credit the fraudster could then take out in the victim’s name.

    For any damage to a person’s credit rating, whether instigated by the credit file holder themselves through late payments or a bad credit score from identity fraud, recovering a clear credit file and fixing credit problems is never easy for the individual to undertake.

    The identity theft victim’s clear credit file is even more difficult to restore, simply because there is the burden of proof. First the victim has to prove they didn’t initiate the credit themselves. This would require documentary evidence and Police reports. But the identity theft victim would be virtually banned from obtaining credit until they are able to wade through the mess that has been created for them on their credit report, and clear their good name.  Until such time they are unable to take out a home loan, get a credit card or even take out a mobile phone plan. A bad credit score can be very debilitating on top of all the other dangers and costs associated with fraudsters committing identity theft.

    If you have been a victim of a job and employment scam and suspect identity theft, it is important to contact Police immediately. It is also important to alert your financial institutions and even the credit reporting agencies so they can ‘flag’ your credit file and bank accounts and be alert to any suspicious activity.

    If you find out your credit rating has been affected, get professional credit repair. You may do more harm than good to your case trying to fix credit problems without a good strong knowledge of credit reporting law and procedures.

    Contact MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au, we can review your credit report, help in negotiations with creditors and get you on your way to a clear credit file once again.

    Image: Dan / FreeDigitalPhotos.net