Even the smallest negative listing on a credit report can have negative results when trying to secure credit.
Many credit providers have become highly risk-averse and even one small credit issue such as a late payment on a phone account can make things very difficult for people to secure credit.
A credit default makes you a risk to lenders, meaning it will not only be hard for you to gain financial support, but also interest rates will be higher.
In Australia, there are over four million negative credit defaults made each year, many of which are faulty or inaccurate and therefore contestable.
The problem is in today’s market many credit providers use computer systems to determine if they will approve credit. The fact is that if a negative credit listing is detected, even if incorrect, the result is usually a decline.
If an application is declined due to a credit issue very few options are available to the consumer. Unfortunately many consumers just accept the situation as they don’t know what else to do.
The outcome for people who cannot secure credit due to negative credit listings can be severe and wide spread. Many people feel powerless in these situations and even though the negative credit listing may in fact be inappropriate and incorrectly listed, in which case, removable.
There are credit providers that will lend credit to people with a low level of credit impairment, however these facilities are often very expensive from both a fee and interest rate perspective, which can make leave you in a worse position than you started.
It only takes one small credit blemish to affect your ability to secure credit and simple credit default will remain on a credit file for up to five years.
Let Clean Credit have a look and see how we can help you.
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