MyCRA Specialist Credit Repair Lawyers

Tag: mistakes with credit

  • 5 credit accidents you want to avoid this Christmas.

    Media Release

    credit accidents5 credit accidents you want to avoid this Christmas.

    17 December 2013

    Australians must put credit issues on their radar to ensure a bad credit rating is not the surprise they get this Christmas season, warns a consumer advocate for accurate credit reporting.

    Credit repair pioneer Graham Doessel, who is now Non-Legal Director of MyCRA Lawyers – a firm focusing on credit disputes, says too many Australians are kept in the dark about their credit file, but anyone who intends to borrow money in the next five years should make it their business to prevent simple accidents from hurting their credit rating.

    “I fear many people are unknowingly making mistakes with credit right now, which will see them locked out next year,” Mr Doessel says.

    Back in September, Credit reporting agency Veda Advantage published results of a survey showing that 80 per cent of Australians have never checked their credit history and 53 per cent were not aware that they could ask for a copy of their credit file.(1)

    Mr Doessel says these statistics are severely worrying and show too many consumers are unaware of how important their credit file can be for lenders making financial decisions.

    “There are no class lines, whether rich or poor if your credit file is ‘impaired’ by negative notations, your ability to obtain credit will be affected or the interest rate you are offered will be higher,” he says.

    “I would like to say it is always cut and dried – don’t pay, get bad credit but in reality it’s not that simple.”

    There are number of ways you can make mistakes and end up paying dearly for it. Over the Christmas period the risks can be higher.

    Mr Doessel covers the 5 major credit accidents at Christmas time:

     1. Accidental late payment.

    Right now, if you make a payment late on licenced credit (being loans, credit cards and other finance) – the information is being recorded. You may not intend to actually default on your loan – but Christmas can be a busy time where payments can get overlooked by a few days. Don’t let this happen to you. After March next year, late payment information will be available to lenders on your credit report and will stay there for 2 years. So don’t put off paying your credit card after Christmas pay on time every time to make sure your credit rating isn’t impacted.

    2. Accidental default.

    If you happen to unknowingly let any bill (including your phone bill or Energy account) slip into default – (more than 60 days overdue) a default listing will be recorded against your name. You may have the funds to pay, you may have simply overlooked the account – but your credit file will carry that default listing for 5 years – and most times you will be refused mainstream credit because of it. So if you plan to go away for Christmas, make a plan to ensure all of your bills are organised prior to leaving.

    3. Being careless with your personal information.

    Scammers are out in full force at Christmas, but often people are too busy to take care with their personal information. Credit cards are used more frequently and at a variety of locations; we’re being encouraged to sign up for free giveaways; we’re giving out more details online – but you must consider the risks to your credit rating. If fraudsters are able to access your personal details they have the key to your good credit rating. They can run up credit all over town. Often it’s not until victims apply for credit in their own right and are refused because of defaults that they realise their credit file has been misused.

    4. Not forwarding new information to old Creditors during moving and transfers.

    Christmas and New Year is a very common time for transfers and other work changes to occur that could see people moving interstate. A change of address is a very common reason bills go unnoticed – along with warning notices and the result is a bad credit rating that may not be detected until you actually apply for a home loan. Before you go, tie up all loose ends at your current address, ensuring all changes of address and accounts are settled and confirmed in writing to avoid being blacklisted for credit.

    5. Overlooking errors and omissions from Creditors.

    Even creditors are affected by the silly season -with staff busy and preoccupied. The volume of transactions may increase while staff decrease, putting stress on the Creditors’ systems. For this reason it is crucial for you to keep watch on your own finances. Check your bank statements and bills at this time. Keep abreast of which bills are due and when. If you don’t receive a bill, chase it up. Busy people make mistakes – don’t let them make it with your credit rating.

    You can check what is currently reported about you at www.freecreditrating.com.au.

    Mr Doessel says education is the key to ensuring less people are making mistakes with credit. More information on credit reporting in Australia can be found at the Office of the Information Commissioner’s website www.oaic.gov.au. MyCRA also provides up to date information on trends and issues in credit reporting impacting consumers www.mycra.com.au/blog.

    /ENDS.

    Please contact:

    Graham Doessel – Non-Legal Director MyCRA Lawyers Ph 3124 7133

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

    www.mycra.com.au www.mycra.com.au/blog

    MyCRA Lawyers 246 Stafford Rd, STAFFORD Qld Ph 07 3124 7133

    MyCRA Lawyers is an Incorporated Legal Practice, focused on credit file consultancy and credit disputes. We mean business when it comes to helping those disadvantaged by credit rating mistakes.

    (1) http://www.veda.com.au/sites/default/files/images/ycai_launch_infographic_final_190913.pdf

    Image: Naypong/www.FreeDigitalPhotos.net

     

  • The credit slip-ups that stop you from buying a home

    Press Release

    credit slip-upsThe credit slip-ups that stop you from buying a home

    21 May 2013

    Latest housing figures show the property market is on the up and up, but a consumer advocate for accurate credit reporting warns that people can put their chances of buying a home at risk by making some basic mistakes with credit.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many buyers get caught out with bad credit at the time of finance application and are refused a home loan unnecessarily.

    “Many people are shocked that they can’t buy a home because of their credit report, as they always pay their bills on time, but there are some basic mistakes that people often make with credit that can see them refused finance – and they can be easily avoided,” Mr Doessel says.

    He says bad credit or credit impairments are currently shown on the credit file for between 5 and 7 years, and most often impact the credit file holder’s ability to get mainstream credit.

    “People can also be forced to pay a much higher interest rate because of bad credit. So it is ideal if people can avoid the mistakes in the first place, or fix them before they make a home loan application,” he says.

    The advice comes as the Australian Bureau of Statistics announced last week a recorded increase in loans during March, with investment housing commitments rising 1.4% and owner occupied rising 1.1%. [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]

    Mr Doessel says good general credit education in the community is required to take full advantage of the renewed market confidence.

    “All buying sectors, including Australia’s flailing first home buyer market, could be enhanced by demonstrating to them just what good decisions with credit are, and how people can prevent credit refusal,” he says.

    5 Crucial Credit Mistakes Which Could Cost You a Home Loan

    1. Paying bills late – even slightly late!

    Previously it would take 60 days before a repayment fell into ‘arrears’ and a Credit Provider would list a default on your credit file. This can still happen, but from December last year licenced Credit Providers are reporting other repayment history. If a payment on a credit card, loan or similar is made more than 5 days late, it will be recorded on your credit file for two years. Too many late payments could impact your ability to get a home loan. [ii]

    2. Making multiple credit applications

    When choosing credit that’s right for you, by all means do research but only apply for credit or give your personal details when you’re sure you want to proceed. Many people don’t know that all credit enquiries are recorded on your credit file, and too many will be a detriment to your approvability – so only officially apply when you’re sure.

    3. Not checking account statements

    You should check all bills and statements when they come in, and query anything you’re not sure about. This includes if you have moved or changed accounts, and you don’t a receive statement from your Credit Provider. Any discrepancy should be disputed immediately so the issue is noted with your Credit Provider prior to the account being considered ‘late’ or in ‘default’.

    4. Not Checking Your Credit Report

    Most people don’t know that every year they are able to request a copy of their credit report at no charge from Australia’s credit reporting agencies, so you can see most of what the banks see about you. The report is provided within 10 working days, and if you need it sooner, you can pay. Many people don’t know they have bad credit, so it is important to check and if you believe you have been unfairly listed, to dispute it.

    5. Taking ‘no’ for an answer.

    Bad credit means you are locked out of mainstream credit for between 5 and 7 years. So if a Credit Provider says the listing is fair, and you believe it isn’t, you should take the matter further. If you are confident you have a clear case, then you can escalate your complaint yourself to the Credit Provider’s Ombudsman. The case must be pursued based on the Credit Provider’s adherence to credit reporting law. Alternatively, you can employ a credit repairer to make a case and dispute your listing with your Credit Provider on your behalf.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

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

     

    ——————————————————————————–

    [i] http://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0

    [ii] http://www.comlaw.gov.au/Details/C2012B00077

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

  • The 7 worst mistakes you can make with credit which can lead to defaults

    What are some of the big mistakes made with credit which could lead you into battling debt and having creditors sending letters of demand and listing defaults on your credit file? We look at the 7 mistakes with credit that could increase your changes of getting bad credit history.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs.

    1. Leaving no room for emergencies

    Borrow within your budget. If you have a revolving line of credit or use credit cards you will need to be disciplined. Consider what you can afford and try to live frugally, rather than spending right up to your credit limit. It’s important to realise that you will pay at some point for the credit you use. If you are consistently struggling to make your repayments – then it’s time to take stock of things. Many people get into trouble with their repayments and end up with defaults on their credit file because – well – life happens and they haven’t left any room in their repayments for saving or for emergency funds. Try to separate wants from needs when you borrow.

    2. Thinking you need a large credit limit

    Ignore what the card company or bank sets for your limit – what can you comfortably afford to repay? If you intend to apply for further significant credit in the future, you will need to consider that a lower credit limit looks better to a prospective lender – so if you don’t need it – consider reducing it.

    3. Redrawing on your loan

    If you have a redraw facility on your loan – the temptation can be high to borrow against it. But you should tread carefully here. Remember you are going to be paying interest on this money – you may be better to just save it from your wages. Credit cards can also offer cash advances, but do bear in mind the interest charges on this money are exorbitant. Cash advances are a common way people can blow out their credit card debt to epic proportions leaving them no way to pay, and with defaults which destroy their ability to get new credit for 5 to 7 years.

    4. Choosing the wrong kind of credit

    Make sure your credit suits you. Make it work for you, not the other way around. What kind of payer are you? What do you need the credit for? There’s no point getting a line of credit if you are the big-spender type – you are certain to get into trouble. These types of facilities only work if you are disciplined with your spending. When you choose a credit card – consider what you need it for. If you are going to use it a lot – perhaps the rewards points could be a deciding factor. But if you are only going to use it sporadically – maybe the annual fees should be more important.

    The same goes for any big ticket item you purchase using credit – like houses and cars. What does it need to do for you? What can you actually afford? How long will you need it for? Remember a car always depreciates in value. And whilst houses can make you money in the right market, and possibly a 4 bedroom ensuite home might be a good long term investment – can you actually afford to live comfortably with this debt? If you need to go down to one income at some point – how will your repayments look then? It can cost you thousands in agent’s commission, stamp duty and legal fees to sell if you decide you have bitten off more than you can chew after you move in. Or if you default on your repayments you will probably be unable to borrow for years to come – so choose wisely.

    5. Repaying only the minimum amount

    On credit cards, you should pay off the entire credit card balance within the interest free period to avoid the high interest charges. If you don’t, you will be charged interest right back to the date you purchased each item. You not only lose the interest-free period on those past purchases, but until you pay off the balance there will be no interest free period on anything you spend in the future. This can see some people come unstuck and their credit card debts can snowball with interest until they reach the point where they are unable to pay and begin to get into arrears.

    You can find low interest credit cards, but it is still advisable to pay more than the minimum repayment amount each month. If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate. There may not be as many ‘perks’, but the lower interest rate should mean the carried over debt is more manageable for you, and will prevent possible bad credit history.

    Likewise on any other type of loan that you actually want to pay off – paying the minimum amount will not get you there. You will need to pay a significant amount more to start paying into the principle – especially in the early days of the loan.

    6. Not Checking Statements

    You should check that your credit and debit card statements are correct every month – and query anything you’re not sure about. Maybe you were charged twice for an item, or charged too much. It is a good way to be alerted early to identity theft as well. You should also check your bank account statements in the same way.

    Checking your statements will also allow you to get a good handle on just where you’re spending too much and allow you to adjust your spending next month to compensate.

    7. Not Checking Your Credit Report

    Most people don’t know that every year they are able to request a copy of their credit report for free from Australia’s credit reporting agencies. This report is important, because it shows you how you will be viewed by lenders if you ever apply for a loan. You should check that all of your personal details are correct. You should check the credit enquiries are valid (id theft risk). You should also check to see whether you have any negative entries against your name. Defaults, Clear-outs, Judgments, Writs can all mean you will be refused credit if you apply.

    If you don’t believe the credit listing should be there, if you didn’t know about it or you think there might be a mistake, then the worst thing you can do is leave it there. It will mean you are locked out of mainstream credit for between 5 and 7 years – depending on the listing type. It will often mean you are told by Creditors and the agencies that the bad credit is there to stay for the term – it can’t be removed. But this may not be true.

    For professional advice on how to tackle Creditors and the credit reporting agencies about a listing which should not be there, a credit repairer will be able to determine whether your circumstances would allow for repairing the credit rating and actually negotiating the removal of the bad credit history from your credit file.

    If you want to see what is said about you on your credit file, you can contact MyCRA Credit Rating Repiars to request a free copy of your credit report. We can also help to repair bad credit history, or give you more information on your credit rating. Visit our website www.mycra.com.au or call MyCRA Credit Rating Repairs tollfree on 1300 667 218 for more details.

    Image 1: adamr/ www.FreeDigitalPhotos.net

    Image 2: David Castillo Dominici/ www.FreeDigitalPhotos.net