Credit Repair - FAQ'S
What is a credit Report?
A creditor report is information about who you are, and a history of your financial behaviour. The credit report is the basis of evaluating your credit rating or credit risk. Each country/state has its own system or systems
What is In a Credit Report?
Each report usually consists of your name, address, personal details such as date of birth and a list of all the mobile phone, gas, electricity, banking, insurance and other finance providers that have enquired about your credit worthiness, in addition to a list of each time you have applied for credit, and information about any late payments, defaults or judgments you have against you and also may include addresses, employment history, current employment, clear outs, crossed or linked files and bankruptcies etc. Your credit report is a public file about your finances.
Do I have a credit report?
More than likely!. Chances are you have a credit report if you have ever applied for or even enquired about any financial product, mobile phone contract or store credit card or insurance product.
How did I get this report?
You may not know this, but when you made any enquiry or application to buy of mobile phone contract, or to apply for an interest free electrical / furniture store offer, chances are you consented for the provider (such as the mobile phone or electrical store company) to add your details to a credit reporting data bank.
Who keeps this information?
This information is kept by private companies who are in the business of collecting data about individuals and their “credit” behaviour (whenever you enquire and / or borrow money, if you pay the money back on time etc).
Is the keeping of my personal information legal?
Any one or organisation can be a credit reporting agency. There is nothing illegal about the service they provide, as long as it does not breach a range of privacy laws, consumer protection and laws about defamation.
How does my credit rating affect me?
Every time you open an account, apply for credit, or when you are late paying a bill, it all goes on your credit report. If you have “defaults” “late payments” or other negative notes on your file you are considered a “bad” credit risk so you pay more for your loans, credit cards, etc, or you may be refused credit altogether. The fees, charges and interest rate you pay are based partly on your “credit rating”. The cost of credit can be an unnecessary strain on your finances, it can affect your life style it can even affect your career prospects. Increasingly employers and employment agencies require applicants to authorise them to get a copy of your credit report.
How can I find out my credit rating?
You are entitled to get as copy of your credit report.Some providers are free, some you pay. Check your own state providers.
How can I get a bad creditor rating?
You can get a bad credit rating by simple forgetting to pay a bill on time, by disputing a bill, or by simple assuming you have paid an account if full, or when you have moved address but forget to divert the mail. It can be as simple as a cell phone company sending out your bill late, stuffing up it's administration then blacklisting you. It doesn't have to be your fault to collect a mark, so it up to you personally to keep the b....... honest.
Is my credit rating legaly binding?
A credit rating has no legal status but credit providers need to decide if you are a good risk before they lend you the money so they check your credit report. They do not need to check the report (but most do) or even rely on the report they could simple ask you questions to help them decide if they should give you credit and at what cost.
What about my privacy?
Unfortunately, privacy is a secondary issue; the law, the government and the finance industry believe that citizen’s private details can be kept by privately owned and controlled agencies, and that this information should be provided to third parties such as banks, mobile phone companies, retailers, financiers, insurers and other credit providers. However, there are laws and regulations that govern how the information should be collected, published and maintained. Some follow the the rules & some don't.
How Much Bad Credit Does It Take To Be Denied Finance?
As you may have already experienced, even one small late payment listing, may result in credit refusals. Any negative credit whatsoever can become a substantial credit obstacle.
Does Paying The Debt Restore My Credit?
You would think that would be true. But, yet again, the credit reporting system does not work that way. In some countries the system only records negative events, so there is no good credit to balance any small negatives. When you pay an old debt, the negative credit listing doesn't disappear. And, the most ironic thing is that a paid, current negative listing is not much better than an unpaid negative listing. This is not always true, but in most cases, you will not get much further by paying the old debt.
How can I repair my credit rating?
A credit reporting agency makes their money by having the largest possible data base available to their subscribers, who they charge a fee to access on a daily basis. Subscribers are encourage to add information about any dealings they have, eg when you make an application for further credit or when you are late paying an account. To repair your credit report is not straight forward because it means the credit reporting agency has to; look into the accuracy of the information they hold, it can often be very time consuming, frustrating and often without any resolution.They try to be unhelpful as their profit comes from subscribing businesses.
What happens if the rating is based on wrong information?
A credit rating based on wrong information may be defamatory and a breach of a range of laws .This is known as “contestable” credit reports. You will need to identify what part of your report causes the “bad” credit rating then argue that it is incorrect to have it repaired.
How Does a Credit Repair remove my Bad Credit Listings?
The process of repairing a disputed credit rating is achieved through relying on the individual’s rights found in both Commonwealth and State Legislation. Credit Repairing can be done with persistence & expertise.
