How Does Credit Repair Work?
We can repair your credit score
In times of financial uncertainty, it is vital that you have financial choices when it comes to applying for credit. You just don’t know what is around the corner.
Clean Credit is an industry leader in transparent. effective credit repair. We specialise in removing and improving negative credit listings such as payment defaults or judgements.
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What is credit repair?
People often ask: “how does credit repair work?”. But first, it is important to understand what credit repair is. Credit repair is a term used to describe the process of improving an individual’s credit report. This process is achieved through the removal or adjustment of incorrect negative credit listings from a person’s credit file. Cleaning up these listings may improve a person’s credit score. This is a score that is checked by credit lenders when someone applies for a loan. With a better credit score, a person has a greater chance of securing a loan as they are deemed as more responsible borrowers.
What is a credit score?
How does credit repair actually work?
You may be wondering, “How does credit repair work?” While there are many ways to deliver effective credit repair, success is often achieved by identifying inconsistencies in the process undertaken by credit providers prior to entering a negative credit listing on a credit report.
There is significant consumer protection in place via legislation that requires a credit provider to follow a strict process prior to entering a negative credit listing such as a payment default. A part of this requirement is to provide adequate written notice to the customer prior to entering a negative credit listing.
Why should I fix my credit rating?
Low credit rating
Difficult to acquire loan or finance
Increase your credit score
Ability to get loans with better interest rates
The credit repair process
Our goal at Clean Credit is to make sure that all our clients vastly improve their credit score. To do so, we comprehensively assess your credit file. This involves investigating your credit situation to assess whether or not you have a case against the creditors. We’ll quickly let you know how we can help you.
Step 1: Enquire
Step 2: Investigate
Step 3: Dispute
Step 4: Remove
Credit repair: placing a negative listing on your credit file
There are certain procedures a credit provider must undertake for a negative listing to be made on the customer’s credit report.
In many cases, credit providers have failed to follow important processes before listing a negative credit item incorrectly. It is not uncommon for a demand letter to state the correct notice period, being 30 days, however, the credit provider will often list the negative item before this notice period has lapsed.
The default notice must also include certain information such as the amount owed, how this amount can be paid, the time given to pay and must communicate an intention to list a payment default in the event of non-payment. This is just a small part of what is required to list a valid default.
Clean Credit Pty Ltd investigates the processes used by creditors and identifies areas where they have not complied with the legislation, deeming the default listing to be invalid.
Credit repair: recording a negative listing on your credit file
The negative credit listing itself must be recorded correctly. Items such as the amount owed, the date entered, the status and nature of the listings must be accurate. It’s very common for credit providers to enter this data incorrectly to the detriment of the consumer.
Another example is accounts that were in dispute at the time of listing. Should a consumer contact a credit provider and dispute a bill, the credit provider should not enter a negative credit listing unless the dispute has been resolved prior. It is common for credit providers to list a payment default when the account is being disputed.
Should a consumer contact a credit provider and inform them they are having difficulty making payments, the credit provider may be obliged to offer financial relief by way of freezing the account for a period of time, altering the payments or adjusting the term. If a credit provider does not offer financial relief they may be in breach of legislation and industry practices. Therefore a payment default or other negative listing should not be entered on a credit file.
In some cases, extreme hardship can also be used as an effective negotiation platform to remove a negative credit listing. These cases are treated on a case by case basis, however, situations such as serious illness or family tragedy can be considered when disputing negative credit listings from the credit file. Call us now if this applies to you. We are here to help.
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These examples only scratch the surface of the question “How does credit repair work?”. Clean Credit specialises in understanding the most effective methods to administer effective credit repair on behalf of its clients. We have helped many people repair their credit and increase their credit scores, allowing them to become financially independent once again.
We have put together the most dedicated and skilled staff in credit repair. At Clean Credit, we stand by your legal rights and believe people should not suffer as a result of the negligence and disregard of others.
Need help to repair your credit rating?
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