Credit repair case studies
What is the ideal credit score?
Clients often ask us what their credit should be in order qualify for finance. In order to answer this question it’s important to understand the basics of credit scoring.
A credit score is displayed on a Veda Advantage Credit Report and represents the risk profile of an applicant to a potential credit provider. Other than a bankruptcy or formal debt agreement, the lowest credit score is -200 with the highest being 1200. The lower the score, the higher the risk is considered to be by a credit provider.
Typically a credit provider will look at three things on a credit report when assessing an applicant’s risk profile:
- The credit score
- Past credit applications/enquiries
- Negative listings such as defaults etc.
While credit scoring has been in existence for some time in other parts of the world, such as the United States and Europe, it’s a relatively new concept in Australia. The idea behind a credit score is quite simple; it is designed to provide a credit provider with a tool to quickly assess risk.
Many credit providers set an automated credit system, meaning that once a credit score drops below a certain level the credit provider will consider the risk too high and most likely decline the application. Unfortunately it is the negative listing itself that credit providers react to, so regardless of who listed the default, the amount, or even if it has been paid, the answer remains the same – “declined”.
While a score of 600 or more does not guarantee credit will be approved, it’s clear that a credit score under 600 will most definitely represent a real problem for people trying to gain finance approval.
Effective credit repair has the potential to change people’s financial future, as when a negative listing is removed from a credit file, the credit score instantly improves as if the listing never existed.
With this in mind let’s take a look at some real life case studies of how Clean Credit has helped people regain their credit score and reaffirm their financial independence.