Credit Rating & Score
Will Paying an Account Remove a Default Listing?
We are often asked if paying an account will lead to the listing being removed from a credit file. This is an interesting question. Read on to find out more on this topic.
NO effect on your credit file
The way to remove a negative listing really depends on the nature of the listing itself. In the case of payment defaults and judgments, it is all about applying the correct legislation that is in place to protect the consumer against how the listing was originally entered by the credit provider.
When a credit provider enters a negative listing against someone, they are required to follow a very strict process before they are legally allowed to enter a listing on a credit report. In many cases this process is not followed and on this basis many negative listings can be removed from a credit file.
Listings such as Court Judgments are dealt with in a very different fashion. Although it is helpful to identify an inconsistency with the listing, a Court Judgment does not necessarily need to be faulty or contestable to be removed from a credit file. Much of this process is dependent on the Plaintiff being agreeable to allow for the discontinuance of the matter. For this reason it can be advantageous if the Court Judgment is unpaid as the payment of the amount outstanding can often be used as leverage for cooperation from the Plaintiff and ultimately the removal of the listing from a credit report.
So when looking to remove negative listings from your credit file, court judgments are not always as scary as they sound. Clean Credit specialises in credit repair. Our team of credit experts are highly experienced and know the relevant laws and legislation about credit reporting in Australia. We have also built strong professional relationships with many credit providers, meaning we can offer an efficient and highly successful service.
Clean Credit has helped many people remove negative credit items such as defaults and judgments from their credit files, allowing them to restore their credit rating and secure credit once again.
We are often asked if paying an account will lead to the listing being removed from a credit file. This is an interesting question. Read on to find out more on this topic.
If you have unpaid defaults, it will be marked on your credit file or result in court judgements. Not making minimum payments on your credit card or missing payment schedules for loans without speaking to the company or lender about coming to some payment arrangement for payment could damage your credit score
I recently read an article about how the Australian Retail Credit Association (ARCA) had launched a fact sheet on how people could repair their own credit files if they felt an incorrect or contestable listing has been made against them. As the director of a credit repair company, the only thought I had while reading this information was “if only it was that simple”.