MyCRA Specialist Credit Repair Lawyers

Tag: home loan

  • Banks Check Facebook To Stamp Out Liar Loans Catching Out Innocent Home Buyers In The Process

    Banks Check Facebook To Stamp Out Liar Loans Catching Out Innocent Home Buyers In The Process

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    Banks Check Facebook To Stamp Out Liar Loans Catching Out Innocent Home Buyers In The Process

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    Liar Loans have been written about before, but did you know Banks are now trolling your Facebook and other Social Media spying on you without your consent?

    This release highlights how a harmless joke on Facebook cost a young lady her chance at home-ownership – and it could happen to you too…

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    They were dubbed liar loans, where loan applications inflated earnings and assets and underestimated debts and liabilities, for a large part, brokers copped the blame, but just as many borrowers fudged their figures too.

    A UBS study completed last year estimated up to a third of investment loans may have had less than honest declarations in the applications, this was despite the Royal Commission into Banking.

    But it seems now banks have wised up that not all loan applicants were being completely honest and lenders are going above and beyond to check you are being truthful on your loan application, according to leading consumer and financial law firm MyCRA Lawyers.

    “It’s a case of the banks are sick of being blamed for everything that is wrong in the lending world, so they are now going to the next level of due diligence. Banks are so strict in following procedure, they are catching out people who didn’t even realise they had lied,” MyCRA Lawyers CEO Graham Doessel said.

    Mortgage broker Wendy De Graaf says she recently had a client rejected for a loan after the lender checked the Facebook status of her flatmate that had, as a joke, put they were in a relationship together.

    “My client is genuinely single but her friend had on their Facebook status that they were partners and the bank saw this information and rejected the loan because it didn’t match what was on her application.

    “I was shocked when they told me the reason for the loan rejection, it’s meant my client has missed out on buying her first home, Ms DeGraaf said.

    “What’s even crazier is my client is a lesbian and her flatmate is male, but he did gift her some funds towards her deposit which is why the bank has looked at his social media as part of their investigation into approving the loan.

     “There may be a lot more people being rejected because of what is on their social media and they don’t know it, the only reason I found out is because I had known the business development manager at the bank for so long and they told me about the social media status issue,” Ms De Graaf said.

    Mr Doessel said your bank statements tell a story about you too, and if you don’t estimate your expenses correctly and the bank sees a different story in your expenditure, then you should expect to get rejected.

    “There have even been stories where, as a joke, people transfer money to a friend and describe the transaction as a ‘sexual service’ even though it was their half of a dinner bill and the bank has seen the transaction and viewed it poorly when it came to approving a loan,” Mr Doessel said.

    “Excessive use of food delivery services like Uber Eats, take away restaurants and online gambling will go against most people who apply for a loan.

    “While the Royal Commission may have seemed like a free for all kick at the bank, in reality, a lot of it reflected poorly on borrowers too. Now banks not only are cracking down on their own behaviour but also customers which means it’s getting tougher for all of us to get finance,” he said.

    So you can make sure you’re honest on your finance application, check you have clean credit by starting at www.FreeCreditRating.com.au – it’s free and knowing your data in advance could save you thousands in additional interest.  If you get stuck, MyCRA Lawyers also offers a free Credit File Analysis and Explanation Service to help you make sense of your credit reports.

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  • What Happens If You Lie On Your Home Loan Application? What could happen if you lie on your application?

    What Happens If You Lie On Your Home Loan Application? What could happen if you lie on your application?

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    What Happens If You Lie On Your Home Loan Application?

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    Studies reveal that 37% of home loan applicants lie on their homeloan application forms

    With the real estate market hotting up homebuyers will need to make themselves look as good as they possibly can to get a loan in a very competitive and tightly regulated loan market.

    Those suffering from FOMO, Fear Of Missing Out, may even be tempted to lie, inflating their earnings, assets and the like, but leading Australian consumer and financial law firm MyCRA Lawyers says don’t, because it’s potentially fraud and now your bank will find out.

    Despite that it seems Australians, particularly those taking out investment loans, are fudging their applications.

    A recent survey by investment bank UBS found up to 37 percent of applicants had lied on their loan applications.

    The survey of 903 Australians found those who had bought more than one property in a single financial year were the most likely to lie.

    About half of borrowers with two or more investment properties admitted to being less than truthful about their earnings and debts.

    “Chances are to date most people will get away with lying, but that’s now changed, as banks are able to see your statements even from another bank when you give permission as part of your loan application.

    “Since the Royal Commission into banking lenders, particularly the big 4, have the ability to share information about potential borrowers.  

    It means if you lie about your wage the bank will be able to cross check it against your statements.

    If you lie about your debts they will be able to check with just about every lender in the country except your local loan shark,” Mr Doessel said.

    So what if you have already lied, well you might be okay, provided you don’t fall behind in your repayments or don’t try to refinance. But beware!

    “It is fraud, and fraud is a serious crime in Australia punishable by jail,” Mr Doessel said.

    “Even if you don’t get a ten year stretch, being convicted of a fraud offence is a real pain in the backside.  

    You might recall the last time you applied for insurance they asked if you’d been convicted of fraud, well now you will have to say yes, not only is it embarrassing, it means you won’t get insurance or at best have to pay a much higher premium,” he said.

    “For most people the easiest way to boost your chances of being approved for a home loan or any loan for that matter is to have a deposit and a good credit history.

    “A blemished credit file these days is behind more people to being rejected for a loan than almost any another cause.

    “It is something easy to keep tabs on by annually requesting a copy of your credit file from the three credit reporting bodies in Australia, you can find links to these at https://www.FreeCreditRating.com.au, and if you find something we’re happy to take a look and point you in the right direction,” Mr Doessel said.

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  • Why Women Could Be Locked Out Of Home Ownership Simply Because They Are Female

    Why Women Could Be Locked Out Of Home Ownership Simply Because They Are Female

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    It’s disgusting to think this could actually be true in 2020, worse still that’s it’s hidden in plain sight.  This release lifts the lid on financial gender inequality and

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    Why Women Could Be Locked Out Of Home Ownership Simply Because They Are Female!

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    Are women being secretly discriminated against by credit reporting bodies?

    Exactly how credit reporting bodies like Equifax, Illion and Experian come up with your credit score is somewhat of a mystery as each uses a slightly different formula to assess your creditworthiness.

    We do know, however, that they do discriminate, in fact, that is their whole job, to discriminate.

    To discriminate who is good with money and who isn’t, and who should get credit and who shouldn’t.

    We assume (we say assume because it’s all a big secret), for example, you are discriminated against based on:

    1. where you live,
    2. on the job you have,
    3. how long you’ve been in that job and of course
    4. how good you’ve been at paying your debts in the past.

    But do they discriminate based on gender?

    Well leading Australian consumer and financial law firm MyCRA Lawyers says it’s highly likely they do.

    MyCRA Lawyers CEO Graham Doessel says there is no shortage of evidence around the world that women are worse of financially than men, so it’s highly likely credit reporting bodies mark women down on their credit score simply because they are women.

    A 2009 the Australian Human Rights Commission released a report ‘Accumulating poverty?

    Women’s experiences of inequality over the lifecycle’ which puts a magnifying glass over a host causes to why women are worse off than men financially.

    “The report looks at issues like:

    1. the gender pay gap,
    2. career progression,
    3. maternity and parental leave,
    4. gendered ageism, and
    5. their effect on women’s financial position.

    “All factors I am willing to bet, Credit Reporting Bodies would take into account when assessing a person’s creditworthiness, and could easily be grouped under the box male or female when ticked in your credit score calculation,” Mr Doessel said.

    According to OECD figures, a host of statistics could be broadly attributed to women like their level of employment or unemployment and at what age they are likely to leave or re-enter the workforce.

    “Problem is we don’t know for sure because Credit Reporting Bodies keep secret exactly what data they use, and what they give each factor when it comes to calculating a credit score.

    “We believe it’s high time that gender was taken out of the equation, to ensure women have equal access to finance, after all, numbers don’t lie and your sex shouldn’t affect someone’s ability to repay a loan.

    “I know many women who are far better with a budget than many men,” Mr Doessel said.

    “It is quite possible Credit Reporting Bodies are in fact breaching anti-discrimination legislation but we just don’t know because they aren’t transparent.

    “How do you test this, well short of someone checking their credit score before changing genders as male then again after transitioning to female, its almost impossible.

    “Why is this a problem? If women indeed have a tougher time getting credit, it may exclude them from a host of wealth-building opportunities like buying a home or getting small business loans.

    “We believe it’s time they were made disclose how they calculate a person’s credit score and made remove gender from the calculation,” Mr Doessel said.

    If you need to check your credit score now, go to www.FreeCreditRating.com.au today for instructions and free access links.

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  • Could carry-over credit card debt be the undoing of many a home loan?

    carry-over credit card debtIn my recent guest post for broker publication The Adviser, I discuss repayment history and credit card accounts, looking at how Australia’s new credit laws could change the playing field for borrowers and brokers, and how repayment history could impact credit ratings and the approval of home loans. 

    By Graham Doessel, Non-Legal Director MyCRA Lawyers www.mycralawyers.com.au.

    You can read my guest post from The Adviser in full below:

    Could carry-over credit card debt be the undoing of many a home loan?

    Australia’s new credit laws will place late-paying clients of licenced credit accounts such as credit cards and loans on the ‘naughty list’ if they are more than five days late with repayments.

     So who’s going to be most at risk of getting a late payment notation?

     In our experience, those with carry-over credit card debt, as well as those people with multiple credit cards could be most at risk.

     Certainly, when assessing clients who present with bad credit, we find a significant number of clients with defaults who have carry over credit card debt and/or are juggling multiple credit cards and other debts in arrears.

     These people are more likely to default because they have undertaken too much credit, often leaving no wriggle room for when life throws them a curve ball. Death, divorce, unemployment, sickness and relocation can all create that upheaval which leads to chaos with finances. If someone in the throes of a chaotic event is unable to pay an account and it falls more than 60 days in arrears, they can have a default placed on their credit file.

     In the case of repayment history, it’s going to take much less of a curve ball to make a dent in the credit file. Australia’s credit reporting system proposes to tackle the over-commitment issue with the inclusion of repayment history information to an individual’s credit file. If a client gets more than five days behind in their credit card or loan repayments, their repayment history may show up on their credit file.

     Those people robbing Peter to pay Paul – running from one repayment to the next, but never quite getting far enough in the red to cop a default on their credit file – are just the type of credit users big brother is hoping to catch out with repayment history information. It will mean people with bad habits when it comes to credit are going to be stopped in their tracks, and, eventually, won’t be able to take out major credit such as a home loan.

     Too many late payments will be used to assess increased risk of default even when a default is not present on the credit file.

     So how many people have carry-over credit card debt?

     A recent survey conducted by Roy Morgan for ASIC shows that around 2 million Australians do not pay off their personal credit card debt in full each month, rising from 24 per cent of personal credit card holders in 2009 to 27 per cent of personal credit card holders in 2013.

     Another recent survey showed the volume of Australians worried about their finances. Mortgage Choice revealed in its Money Survey last month that 53.4 per cent of people surveyed were “very worried” or “concerned” about their financial situation. The survey also found that 55.5 per cent of the respondents had credit card debt, with 45.7 per cent of them owing at least $4,000.

     The fall-out goes to the uneducated

     No one is immune to incurring late payments on their credit file, and the fear is that clients who don’t fall into the category of the overcommitted could also be tarred with the same brush. Those who are more than five days late because their bill goes missing, or who stay a little too long on holiday, or just get busy and forget to pay are going to be tarnished as a late payer.

     And it seems that most people don’t know they run the risk of this. Recent statistics from Veda Advantage revealed that the majority of Australians do not know they can be penalised for making a credit card or loan repayment late. Statistics show that seven out of 10 Australians don’t know about Australia’s new credit laws.

    How many late payments will lead to the declining of finance approval is up to individual lenders to decide. What we fear is that even one or two late payments over 24 months could change the interest rate offered.

     How will the new laws change the credit landscape?

     Not every licensed credit provider will be taking comprehensive credit reporting on board, and some will take a while to apply the changes. But what we do know is the shift to the new system is being encouraged by those within credit reporting, with a probable take-up by most licenced credit providers within the next 24 months.

     Brokers may find there’s a teething period in the future, as lenders change the way they assess credit worthiness based on the new available information. What was once accepted by the top-tier lenders could now be declined.

    My advice to brokers? Having knowledge of a client’s repayment history as well as any other adverse listings prior to making an application can help match the right product to your client. It may be a good idea to encourage clients to get a copy of their CRA, and even showing them how easy and quick it can be to obtain their credit report could be beneficial to everyone in the qualifying process.

     Clients can obtain a free copy of all their credit reports from www.freecreditrating.com.au.

    * N.B. Since last Thursday, the grace period for repayment history has been officially extended to 14 days. See today’s post ‘Late payment grace period extended to 14 days’ for more details.

     If you would like to know more about your credit report, or need to dispute a credit listing on your credit report you can contact MyCRA Lawyers on 1300 667 218.

    Image: Gualberto107/ www.FreeDigitalPhotos.net

  • Are you lying to yourself when it comes to credit?

    money liesIn this week’s ‘Make Credit Work For You’ post, we look at the lies we tell ourselves which see us taking on too much credit, or see us run into trouble with our credit file. Those lies can end up leaving us unable to pay, and blacklisted from credit for years to come. What should you be honest with yourself about when it comes to borrowing money? This post is inspired by David Koch’s recent article ‘Money lies you need to stop telling yourself’ featured on news.com.au. 

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

    According to Kochie, telling yourself financial lies is pointless. He says it’s time to toughen up and stop the lies, as these can cost us big time in the future.

    So, what things can we lie to ourselves about, that could cost us our good credit rating down the track?

    * As long as my job pays well, it’s OK if I hate it.

    Kochie says staying in a job that you hate, even if it pays well, means you don’t have your heart in it, there will be no commitment, no passion and your boss will eventually latch on.

    “Inevitably, you’ll be the first one to go in any redundancies and the one overlooked for any promotions,” he says.

    So before you apply for credit, especially major credit like a home loan – it’s important to understand the long term commitment, and consider whether the career you’re in is going to fulfil you for at least several years to come. In the early years of a loan, your repayments will be at their highest and it will be essential to put your head down and pay off as much as possible.

    Kochie says success comes easiest to those who love their job. So if you don’t – it might make sense to spend some time getting settled in a job you do love, before you apply for major credit.

    However, if you are unhappy in your job and are currently paying off a mortgage or other significant loan – it’s important you are really smart about how you change careers. Consider your loan first and foremost before you make any drastic career changes. You don’t want to be caught out unemployed and unable to pay your loan.

    * If I turn a blind eye, somehow my finances will work themselves out

    Burying your head in the sand is never a solution to your financial issues. They only snowball.  At this point in time in Australia, paying bills even one day late may directly impact your credit file, through licensed Creditors recording your repayment history information. Paying them later than 60 days will see you defaulted.

    The government has made changes to credit laws in order to assist consumers in financial difficulty, but you need to put your hand up and own your financial problems, and you need to have a plan.

    To begin with, stop lying to yourself about how much money you actually have. To get any help, or to help yourself, you first need to know exactly how much you have left at the end of the week – or even how much you are in the red.

    If you know you can’t make your credit repayments, work out how much you can pay from what you have, and give this information to your Creditors to negotiate a financial hardship plan which may see your repayments reduced for a period of time. For more information on financial hardship variations, visit ASIC’s MoneySmart website.

    If you are not in dire straits yet, don’t wait till you’re there to do something about it. Kochie recommends starting with a plan that involves either cutting back expenses or earning extra income to balance the books. Make a goal, make a plan and get yourself there.

    * I should buy a home because that’s what grown-ups do

    Despite the ethos that everyone in Australia has the right to own their own home, buying a home is not right for everyone. Kochie argues that for some, renting and investing your savings can be a better financial option.

    For others, they may see more results being able to buy a home and focus on paying down the mortgage (creating equity) as their investment strategy.

    And some people just won’t be able to meet the big financial commitment that a home loan entails, even if they want to, and even if on paper, they look like they could. If this is you, consider that for now, you may be better off learning more about how to make credit work for you, to gain more money skills and adopt a different attitude towards money and credit before you take the plunge.

    * If I dip into my savings now I can always make up for it later

    Kochie advises it’s way more productive to leave your savings untouched and earn extra to pay for the item or experience. If you are saving for a home or business loan, then more savings means cheaper credit.

    * If I get approved for a loan or credit limit increase, I can afford it

    Kochie says this is probably the most dangerous of all lies. “Forget what the bank is offering in terms of increased credit card limits or loan amounts, only you really know what you can afford,” he says.

    Remember, the bank doesn’t have to pay your loan back – you do.

     

    Some other lies you can tell yourself about credit which you shouldn’t:

    * No news is good news when it comes to bills.

    No its not! If you think you should have received a bill and haven’t, the best thing you can do is chase it up. Nine times out of ten your Creditor thinks you should have received it, and you accrue days in arrears, meaning they may default you anyway whether you received the bill or not. This is especially important if you change addresses.

    *If I love someone, money doesn’t matter.

    Money still matters and when it comes to credit accounts, love may be blind but your Creditors are not. You need to keep your head in money matters when love is good and when love goes bad. Sometimes joint credit accounts can land you in hot water. Cover yourself and your credit file against the worst.

    * Someone else will tell me if my credit file is not accurate.

    No they won’t, it’s up to you to be proactive. There is an avenue for complaint if you think your credit file is inaccurate, but the responsibility for finding out whether everything is correct rests which the individual credit file holder. So it is really important that you do an annual credit check (which is free) through Australia’s credit reporting agencies. Don’t leave it until you’re applying for a home loan to find out you have defaults or other credit listings you don’t think should be there.

    To find out more about credit file accuracy, visit our main site www.mycra.com.au or call a Credit Repair Advisor tollfree on 1300 667 218.

    Image: Teerapun/ www.FreeDigitalPhotos.net

  • Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Media Release

    Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Some major changes have occurred to Australia’s Privacy Laws, and home buyers need to know about them before they apply for finance. A consumer advocate for accurate credit reporting warns potential home buyers they need to get up to speed with some of the main changes to credit reporting which could see more people refused a home loan in the coming months and years ahead.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says some simple mistakes made with repayments now, could see people blacklisted from credit even before the Privacy Amendments (Enhancing Privacy Protection) Bill 2012’s March 2014 deadline for implementation.

    “Potential home buyers need to know that from this point on, they need to make every credit repayment on time to avoid having late payment information show up on their credit history and potentially ruin their chances of getting the home they want,” Mr Doessel says.

    Mr Doessel explains more about this change, and other factors in Australian credit reporting which impact your credit rating:

    1. Repayment History Information

    From December 2012, whether or not a credit account was paid on time will be part of your credit history and will be used when a lender is assessing your suitability for a home loan.

    The notation will remain as part of your credit history for 2 years.

    The Government intends for these reforms to decrease levels of over-indebtedness in the market.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    But Mr Doessel is worried it could push more borrowers into higher interest rate loans due to being refused credit with mainstream lenders.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. But these late payers could find they end up refused credit, or charged thousands more in interest due to these notations,” he explains.

    2. Types of credit

    The new laws will now allow information on the type of credit accounts you have, and when they were opened and closed to be shown on your credit history. This will give lenders more ability to determine the relevance of each listed credit account for your specific situation.

    3. Credit limit of each account.

    The credit limit on each credit account will be used to assess the potential volume of credit the potential borrower could have access to.

    But there will be no way of telling what level of debt you actually have only what you could potentially redraw to.

    “It may be worth reducing unnecessary credit limits on your accounts before you make your application,” Mr Doessel says.

    4. Beware excess credit enquiries.

    Whenever a person other than you makes an enquiry on your credit history – that enquiry is recorded on your credit file.

    Mr Doessel says some lenders will decline a finance application due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    “By all means ask questions, and do your research on the best home loan for you, but when it comes to giving over your details, and making applications, leave that until you have decided which lender suits you best, to avoid being disadvantaged,” he says.

    5. It will still be up to you to ensure your credit file is accurate.

    With all of the new information available to lenders about your credit history, it is more important than ever for that information to be accurate.

    You can apply for your credit report for free every year by making a request to Australia’s credit reporting agencies – Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (if in Tasmania).

    “It is up to you to ensure your credit file reads accurately,” Mr Doessel says, “and the saving grace for this legislation is the improvements set to be implemented in 2014 around access and correction of your credit file.”

    From March 2014, Creditors will be forced to justify disputed credit listings. Notably, your Creditor will have to substantiate the information they report on your credit file if you dispute it.

    “This change is crucial, considering the power the Creditor has to impact your ability to obtain credit for years to come. Up till now, there has been little obligation within the legislation for the Creditor to justify credit listings, nor remove incorrect data,” Mr Doessel says.

    If the dispute escalates, you can complain directly to the Creditor’s Ombudsman, and in some instances may have a right to remedy under the direction of the Privacy Commissioner.

    “Finally there is some real incentive for Creditors to take due care with adding listings to credit files and we as credit repairers ultimately have a better avenue to help our clients remedy their credit rating errors,” Mr Doessel says.

    /ENDS.

    Graham Doessel – PH 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld. 4053
    MyCRA Credit Rating Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    ——————————————————————————–

    [i] http://www.attorneygeneral.gov.au/Media-releases/Pages/2012/Fourth%20Quarter/29November-2012-FamiliestobenefitasprivacyreformspasstheParliament.aspx

    Image: vichie81/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • 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

  • Home owners with credit file defaults forking out $15,000 more in interest

    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 if they are lucky enough to get one.

    Although this week’s predicted 0.25 per cent interest rate cut did not occur, each previous one had the potential to pass on a saving of around $50 per month to the average householder for a mortgage of $300,000 if the full amount was passed on.

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

    But for those Australians who are living with credit rating defaults, last year’s interest rates cuts, and any which are predicted in the near future will be negligible.

    Our calculations show families with a $300,000 loan who are unlucky to have defaults on their credit file for 5 years, who are able to secure a loan with a non-conforming lender will be paying a staggering $417.96 more per month in interest rates.

    We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders, but this is not a reality for people with defaults. Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true.

    It is a fact in our experience that there are many families living with unfair defaults.

    It is not known for sure how many of the over 14 million credit files in Australia could contain errors or inconsistencies.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). It revealed about 30% of credit files were likely to contain errors.

    “In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the ACA report said.

    Transferring those figures from the Choice study to the number of credit files in Australia today, could take the figures to over 4  million errors, inconsistencies or flaws.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

    We feel based on the ACA study and the Choice survey that the real figure across the board is likely to be in the middle somewhere – much higher than 1%. With 14.6 million Australian Veda Advantage credit files alone 1 per cent of errors amounts to 140,000 Australians’ financial lives potentially in ruins through no fault of their own.

    Under current credit reporting legislation, it is up to the consumer to check for errors. Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

    Unfortunately consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected.

    Errors do occur, but often it is not until people apply for a loan that they learn they have an adverse listing on their credit file, but by then it is too late to correct errors and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation.

    Unfortunately many people find this process difficult at best – negotiating with creditors is not always easy for the individual to undertake.  Our job as credit repairers is to 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, at which time we advise the creditor to remove the default.

    If you want a home loan, or to re-finance, but are weighed down by credit rating defaults, contact us to see how we can repair credit fast.

    Image: renjith krishnan / FreeDigitalPhotos.net

    Image: digitalart / FreeDigitalPhotos.net

  • NCCP class action is passing the buck

    A class action against banks for irresponsible borrowing – seems unlikely when considering how hard it is for so many to get a home loan in this country – particularly for those people with a bad credit history.

    By GRAHAM DOESSEL CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au

    As discussed with Kevin Turner of Brisbane’s 4BC Real Estate Talk.

    Australian banks are being brought to answer under new NCCP legislation with a massive class action instigated by struggling borrowers, according to Broker News.

    The lawyers of 300,000 struggling bank customers are putting together a case alleging bank lending has put borrowers at risk. The case will be built around first home buyers and lower income households who have received loans since the onset of the financial crisis.

    It will allege that some of these borrowers are experiencing severe financial hardship through no fault of their own, through being allowed to enter a loan contract that they could not afford.

    The case is being spearheaded by retired international insurance broker Roger Brown, according to Fairfax Newspapers, who has been quoted as saying the way banks have been lending has been “irresponsible”.

    In my view, borrowers need to take responsibility for understanding the commitment they are entering. Anyone who signs a contract should not do that lightly – a loan is a serious commitment which stretches for longer than many first home buyers have been alive. Buyers need to be comfortable in it long term, allowing for future changes that no bank can calculate on.

    If people only just qualify for the mortgage with the first home buyer’s grant, and then they go and add further and further credit commitments to the mix, of course they are going to run into trouble. But how can that be the bank’s fault? The First home buyer’s grant is intended as government assistance, not as help to prop up people who would otherwise fail to qualify.

    In real terms our system makes it extremely difficult for people to get a home loan and heaven forbid them having a bad credit rating for not paying a bill on time.

    We help more and more clients with a bad credit rating every day. These people have saved for a deposit for years, only to have their dream of home ownership ripped out from under them because of something like a small Telco default.

    If the banks had in some way falsified information, then of course that would be irresponsible and deserving of a class action. But if these buyers have really just failed to fully understand their own responsibilities and the ramifications of late payments until it was too late, then I don’t believe that is grounds for suing the banks.

    What is needed is more education in general from governments and the industry, and that would be a great outcome for Australian borrowers in general.

    People need to understand credit from a young age, how it can work for them, what can go wrong and how much is too much. They need to be educated about their credit rating and how essential it is to keep a clear credit file.

    For more information on how a bad credit rating affects people’s lives, to order a free credit report or to learn how to fix a bad credit rating, visit our main website www.mycra.com.au or call us tollfree on 1300 667 218.

  • How to keep your credit rating healthy

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

    By Graham Doessel.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image: digitalart/ Freedigitalphotos.net

  • September Lending Finance Statistics, ABS

     

    The Australian Bureau of Statistics released its September Lending Finance figures today – showing a continued small percentage rise in finance numbers.

     

    SEPTEMBER KEY POINTS

     

    SEPTEMBER 2011 COMPARED WITH AUGUST 2011:

    HOUSING FINANCE FOR OWNER OCCUPATION

     The total value of owner occupied housing commitments excluding alterations and additions rose 0.8% in trend terms and the seasonally adjusted series rose 0.7%.

    PERSONAL FINANCE

     The trend series for the value of total personal finance commitments rose 0.2%. Fixed lending commitments rose 0.6%, while revolving credit commitments fell 0.3%.
     The seasonally adjusted series for the value of total personal finance commitments fell 2.5%. Revolving credit commitments fell 7.3%, while fixed lending commitments rose 1.7%.

    COMMERCIAL FINANCE

     The trend series for the value of total commercial finance commitments rose 0.3%. Revolving credit commitments rose 0.6% and fixed lending commitments rose 0.1%.
     The seasonally adjusted series for the value of total commercial finance commitments fell 10.0% in September 2011, after a 7.7% rise in August 2011. Revolving credit commitments fell 15.3%, after a 6.2% rise in the previous month. Fixed lending commitments fell 7.3%, after an 8.5% rise in the previous month.

    LEASE FINANCE

     The trend series for the value of total lease finance commitments rose 0.6% and the seasonally adjusted series rose 1.3%.

     
    FIRST HOME BUYERS RE-ENTER MARKET

    The Real Institute of Australian announced last week that housing first home buyers are dipping their feet into the market again – a drop in interest rates and reduced property prices renewing buyer confidence for the first time in two years.

    REIA housing figures for September show the number of first home buyers, as a percentage of total owner occupied housing commitments increased to 16.4 per cent compared to 15.4 per cent in August.

    The REIA says although this proportion is well below the long-run average of 20.1 per cent, it indicates a modest return of first home buyers to the market.

    “The latest figures show that buyers are gradually returning to the market and we should expect modest increases to continue after the decision on interest rates in November which has made housing more affordable for first home buyers,” concluded REIA Acting President, Pamela Bennett.

    First home buyers wishing to take advantage of more affordable conditions need to know there is more to applying for finance than wages and savings records. Many will neglect one vital check which may mean their finance application is rejected.

    Anyone applying for a home loan should obtain a credit report prior to making a finance application, regardless of whether they think they have a good credit rating or not.

    The last survey on errors within credit files was conducted by the Australian Consumer Association (now Choice magazine) in 2004. The study found that 34% of the credit files of those surveyed potentially contained errors of some kind.

    “In our view, there are serious, systemic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the report said.
    The possible volume of errors on credit files means every buyer should make obtaining a credit report one of the first steps to securing a home loan.

    Buyers can obtain a credit report for free every year, but most don’t know it.

    They are also seldom aware that if they find defaults, writs or Judgments which they believe have errors, are unjust or are completely innacurate, they have the right to have them removed. This is possible in a number of ways, but for most people who are time poor or not familiar with credit reporting legislation, they can contact a credit rating repairer to do the job for them.

    To request a credit file check or have existing errors repaired, contact MyCRA Credit Repairs on 1300 667 218 or visit our website www.mycra.com.au for more information.

    Image: Idea go/FreeDigitalPhotos.net

     

  • Gen Y could be hazardous to their parents’ credit health

    Media Release
    4 August 2011

    Parents who piggy back their children into the property market are not only risking their financial health by doing so, but their good credit rating, a national credit repairer warns.

    Director of MyCRA Credit Repairs, Graham Doessel says the trend of placing the family home as collateral to assist kids into the property market could easily see people up against credit problems if loan repayments aren’t met.

    “There is no doubt it is very difficult for Gen Y to break into the property market, but it is essential that parents understand the risks involved in going guarantor on their child’s home loan. The decision can affect their finances and their ability to obtain credit in the future if things go bad,” Mr Doessel says.

    This comes as the Herald Sun revealed on Sunday Gen Y is using any means possible to break into the property market – one method of which is to use their parent’s property as collateral for their purchase in what is known as a ‘Family Equity Loan.’

    “Aussie Carnegie mortgage broker Mark Daly said family equity loans, which can allow applicants to borrow the entire value of a home and avoid costly mortgage insurance, were becoming more popular with younger cash-strapped buyers,” the article says.

    But Mr Doessel says the risks are often very high on this type of loan. The guarantor is liable for repayments should they not be met, plus all interest, fees and charges, so if the child fails to make repayments, the family home and the parent’s credit file could be put at risk.

    “In instances where repayments are not met, the creditor can place a default on both credit files. Often parents are not made aware the repayments are late until they find the default on their credit file. By then it is too late for their credit rating, and they face being blacklisted from obtaining credit in the future,” Mr Doessel says.

    He says defaults remain on a person’s credit file for 5 years.

    “So for 5 years both parties are unable to obtain further credit and often unable to take out even a mobile phone plan. Parents who may have been close to financial freedom are now facing debt, and a shaky retirement,” he says.

    He says the situation is amplified if the guarantor is unable to cover the repayments.

    “The bank begins to use the property the guarantor put forward as collateral, to recover lost debts. There is a danger the guarantor can lose their home.”

    “By far the most important question parents need to be asking is ‘could we make the repayments on this loan should our child be unable to?’ If there is any doubt of this don’t go guarantor,” Mr Doessel says.

    The Sydney Morning Herald’s Personal Loans Smart Guide provides some other points to consider when making the decision whether or not to go guarantor on a home loan:

    •How much is being borrowed?
    •How responsible is the borrower?
    •How stable is their employment?
    •Does the borrower have any other means of repaying the loan should he or she fall ill, be injured or become unemployed?
    •Can I afford to repay the total sum of the loan?

    Mr Doessel recommends parents seek third party and or legal advice before proceeding. He also recommends a few other policies be put in place:

    1. Insist children have adequate insurance to cover anything that may go wrong during the term of the loan, such as life insurance and income protection insurance.
    3. Set a specific amount that will be guaranteed, and ensure there is an ending to the time period of the guarantee –otherwise the guarantor could be liable for the loan for years to come.
    4. Ask that a copy of all bank statements be provided during the course of the guarantee, so that parents are aware of any late payments. This way, payment problems can be addressed while the parent’s good credit rating is still intact.
    5. If the need for a guarantor is purely due to black marks on the child’s credit file, they may still be able to access credit on their own terms. If the credit file contains a default listing which has errors, is unjust or simply should not be there, under current legislation they do have the right to have that inconsistency removed. This would result in a clear credit file and negate the need for a guarantor.  People can contact www.mycra.com.au for more information.

    /ENDS

    Please contact:
    Lisa Brewster – Media Relations    Mob: 0450 554 007 media@mycra.com.au
    Graham Doessel  – Director   Office Ph: 07 3124 7133

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD.

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

    Links:
    http://www.heraldsun.com.au/money/young-bank-on-family-home-for-loan-security/story-e6frfh5f-1226133621971
    http://www.smh.com.au/money/tools-and-guides/step-4-going-guarantor-20100529-wmcd.html

    Image: Ambro / FreeDigitalPhotos.net

     

  • Found a better home loan? Check your credit file before applying to refinance

    Media Release

    25 August 2011

    Home owners refinancing in the wake of the government’s scrapping of home loan exit fees should consider the health of their credit file before they make a new application, according to a national credit repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says existing home owners should exercise their right to a free credit report from the major credit reporting agencies prior to making any enquiries on a new home loan.

    “People who already have a mortgage probably haven’t considered how important a clear credit rating is – even second time around. Regardless of whether people have been diligent payers, creditors can and do sometimes make mistakes with people’s credit files and some people end up with black marks against their name that shouldn’t be there,” Mr Doessel says.

    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. Even too many credit enquiries can blow someone’s chances of finance approval, so it really is important for people to know what is said about them on their credit report before they go in to refinance,” Mr Doessel says.

    This comes as The Telegraph reported earlier this month existing home owners are staying put and refinancing in high levels.

    It reported mortgage broker Australian Finance Group’s figures of about 39 per cent of their July mortgages were from people refinancing. AFG attributed this trend to the major banks competing very aggressively on fees and price since exit fees were banned.

    “If you have a home loan at the moment, it’s the best time in 20 years to be looking for a better deal,” AFG spokesman Mark Hewitt said.

    Mr Doessel says many of his clients have been in the middle of refinancing, whether to reduce their repayments or to get a better deal – when the bank has performed a credit check and found defaults against their name.

    “Sometimes people don’t know their good name is compromised until they apply for finance and are refused. Many times if they had checked their credit file they may have had the chance to rectify any errors or save themselves the embarrassment prior to applying for the loan,” he says.

    Mr Doessel says approximately 63% of the clients who contact his company for credit repair would be people who 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 a 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,” he says.

    Under current credit reporting legislation, consumers have the right to a free credit report from the credit reporting agencies once a year.

    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.

    Consumers also have the right to have any inconsistencies on their credit file rectified.  Defaults can be marked as paid if the account has been settled.

    But Mr Doessel says 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,” he says.

    /ENDS
    Please contact:
    Lisa Brewster – Media Relations   Mob: 0450 554 007 media@mycra.com.au

    Graham Doessel – Director  (07) 3124 7133 http://www.mycra.com.au

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

    Link: http://www.dailytelegraph.com.au/money/better-mortgage-deals-beckon-as-banks-create-more-deals/story-e6frezc0-1226108846876

    Image: renjith krishnan / FreeDigitalPhotos.net

  • Australians are reigning in their debts and focusing on home ownership

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

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

    JUNE KEY FIGURES

    May 2011 Jun 2011 May 2011 to Jun 2011
    $m $m % change
    TREND ESTIMATES
    Housing finance for owner occupation(a) 13 752 13 882 0.9
    Personal finance 6 852 6 891 0.6
    Commercial finance 30 544 30 443 -0.3
    Lease finance 401 394 -1.7
    SEASONALLY ADJUSTED ESTIMATES
    Housing finance for owner occupation(a) 14 131 14 127 0.0
    Personal finance 7 050 6 993 -0.8
    Commercial finance 31 984 29 897 -6.5
    Lease finance 403 374 -7.2
    (a) Excludes alterations and additions

     

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

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

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

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

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

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

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

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

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

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

    (1) Obtain a copy of their credit file

    (2) Check for any inaccuracies

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

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

    Contact MyCRA Credit Repairs for information on credit repair.

    Image: jscreationzs / FreeDigitalPhotos.net