How does credit repair work?
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In times of financial uncertainty, it is vital that you have financial choices. Our initial consultation to discuss credit repair services is free of charge.
Clean Credit is an industry leader in transparent, effective credit restoration services. We specialise in removing and improving your credit report removing negative listings such as payment defaults or judgements. With our 97% success rate with credit repair.
What is credit repair?
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 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 lenders when someone applies for a loan. With a better credit score, a person has a greater chance of securing finance as they are deemed as more responsible borrowers.
What is a credit score?
A credit score is a number that represents the information contained within your credit report. It is used by lenders to assess your creditworthiness. The higher the score, the more likely you are considered to be able to repay loans and finance.
For example, if you want to apply for a credit card, and you have a default plus several enquiries from other banks, the provider may decline your application. Clean Credit repairs a customers listings, where ever possible, so you have the best change of being approved.
How does credit repair actually work?
While there are many ways to deliver effective credit restoration, success is often achieved by identifying inconsistencies in the process undertaken by credit providers prior to entering a negative 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 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 find credit fix solutions fast so that credit repair can work for you.
Step 1: Enquire
Step 2: Investigate
Step 3: Dispute
Step 4: Remove
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, 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, which can result in bad credit.
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.
We investigate the processes used by creditors and identify areas of non-compliance with the current state and federal legislation, deeming the default listing to be invalid. This means we can fix your credit report more easily.
Removing a negative listing on your credit file
The negative 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 creditors 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 creditor and dispute a bill, the provider should not enter a negative credit listing unless the dispute has been resolved prior. It is common for creditors to list a payment default when the account is being disputed.
Should a consumer contact a creditor and inform them they are having difficulty making payments, the 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 creditor 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 report.
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 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 how credit repair works. Clean Credit specialise in understanding the most effective methods to administer credit fix solutions on behalf of our clients. We have helped many people repair their credit file and increase their score, allowing them to become financially independent once again.
We have put together the most dedicated and skilled staff in credit repair. We stand by your legal rights and believe people should not suffer as a result of the negligence and disregard of others. Our solutions are transparent, quick and simple. With our help, you get back on track and able to confidently apply for finance again.
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