As you are no doubt aware, credit reporting reform is well and truly underway and credit files are slowly changing to contain more data as a part of the move to a more positive reporting platform.
In 2015 Australia will begin a new system of credit reporting that will benefit those who have good credit behavior. Before it was only bad credit behavior that was reported and it would outweigh any good behavior that was not being reported on my credit file.
Historically, Australia has operated under a negative credit reporting system for the purpose of assessing financial and credit worthiness. This meant that an individual’s credit report only included information such as past credit enquiries, delinquencies and other major and minor financial infringements.
Despite how important an individual’s credit report may be, the majority of Australians have never checked their report. Not knowing what your credit report holds can lead to paying higher interest rates on credit cards and loan accounts, and can impede your chances of getting an affordable home loan.
There have been a number of changes to credit reporting legislation recently. Many of these changes are in my opinion positive and were well overdue. For the most part they have been welcomed by credit providers and the general public but having said this, change is never easy and reform with credit reporting has generated its fair share of uncertainly and controversy.
It has now been a number of months since Veda Advantage implemented changes to credit reporting, the question is are these changes proving to be positive?
Improving your credit score has tremendous implications for all areas of your life. A poor credit score can lower your chances of obtaining finance, but remember that this is not a dead end situation.
A credit file is simply an elaborate history of the money an individual has borrowed, the credit used and also whether that individual has cleared debts and made bill repayments within the allotted time.
Many people may wonder, “how important is my credit file?” Your credit file is among the first documents that most lender goes through before approving loans or credit. Your credit file will contain your credit score.
There has been many changes to the credit reporting platform recently. One of a largest being the provision for a lot more information to be contained in a person’s credit file. Prior to these changes a credit file had little information for a credit provider to base a decision on if to approve or decline an application.
I am happy to announce there has been a rethink on the recording of late payments on a credit file. As you may be aware, there has been significant changes to Australia’s credit reporting platform recently.
Is Positive Credit Reporting Really Positive? This is a hotly debated question. Will the changes to credit reporting be a good thing or a bad thing for consumers?
Many people who have problems with their credit file don’t know where to turn or where to get help.
One the most important documents when researching a default listing is the demand notice. A credit provider must provide a correctly structured demand notice to the borrower prior to listing a negative credit listing with a credit reporting agency.
Always communicate with the credit provider. If you have fallen on hard times and are struggling to manage all your bills – call the credit provider and explain the situation.
How can defaults be listed sometimes years after an account has fallen behind?
Various industry Ombudsman have expressed concern with the credit repair industry recently.
Presently the minimum amount a credit provider may list as a default is $100.00. When people become aware they have a default recorded on their
There seems to be a growing trend where credit providers are asking for payment to produce documents that relate to their clients affairs.
This is a question we are often asked. I can understand that from a consumer’s perspective it must seem confusing that information can differ between credit reporting agencies. After all, aren’t credit reporting agencies meant to only record accurate information?
We are often asked about the problems with Australia’s credit reporting platform and comment on how many incorrect or faulty credit listings there really are.
We were recently featured on channel seven’s Today Tonight; the topic was how credit applications can damage people’s credit files. Click here to view
There are over 14 million credit files in Australia and these contain over 3 million negative listings (Veda Advantage 2008).
It is common for people to approach us regarding credit repair with accounts that are overdue, the whole reason a default is listed is due to an account being behind. What many people don’t realize is in many cases these debts can be significantly reduced given the credit provider is approached in the correct way.
While many people know that a payment default is listed in a credit report for a five year period, few know that a credit provider can record these events sometimes years after the account fell into arrears.
Unfortunately like many industries credit repair has its fair share of questionable operators and as is often the way, the entire industry is often judged on the practices of a small group. The dishonest conduct exercised by some has caught the attention of the Australian Securities & Investment Commission ASIC and it would appear that regulation may not be far away.
At Clean Credit we see two common types of default listings appearing on our clients’ credit files. These are a ‘payment default’ and a ‘clearout’ or ‘serious credit infringement’. Here is some valuable information about what these listings mean.
Even though a negative credit listing should be removed from a credit report if it is found to be faulty or inaccurate regardless of whom the credit provider was the reality is the process of arranging the removal of a credit listing can be as much to do with who the credit provider is as facts surrounding how the listing was entered.
The Australian credit market is among the most interesting in the world as it remains among the most robust and active. While credit markets elsewhere in the globe dips into troubled territories, credit market in here have remained robust.
We are regularly contacted by mortgage brokers and other industry professionals regarding their client’s credit files. One thing we hear regularly is my client has no defaults or judgments but they have been refused finance, what’s going on?
For the consumer it is important note that not all credit repair companies are credited equal. Unfortunately, like most industries credit repair has its
In Australia, just like in most other nations, credit reporting is considered the primary method for credit worthiness assessment of individuals.
