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. Normally this score is expected to be anywhere above 600 to be considered good. However, around five to six million Australians are scored either negatively or badly. This can take you out of the loan market for up to five years and can seriously impact all your long term plans, and may even hamper your existing credit procurement. So, the answer to “how important is my credit file?” is “Very”.
Negative Listings on My Credit File
There are some procedures that lenders have to abide by before they should put a negative listing on a credit file. For example, only defaults that exceed 60 days from payment should be on the list. However this is often not the case. A lot of the times the update happens as soon as your lender faces a default. Sometimes a simple misunderstanding, a faulty listing like this can still impact your credit file and lower your credit score. The good news is that these faulty listings do not have to be permanent. Clean Credit specialises in removing negative listings such as these and can help you improve your credit rating.
My Credit File and the Credit Reporting System
The reporting system in Australia has some inherent flaws. If you happen to be in the market for loans and apply to more than one source, this can negatively impact your credit score. Even if it is to only check for the best deals, it gets reported to the credit reporting agencies and will affect your credit file. That means that even if you just make enquiries, you can land in trouble.
Clean Up My Credit File
There are some things that can be removed from your credit file. Entries that are incorrect, or that have been filed in too early can be removed from your credit history. This will instantly improve your score. Also, as of March 2014, a new comprehensive reporting system has been designed to include payment history, as well as defaults.
Credit Repair as a Life-Long Investment
A clean credit file and a good score can give you the upper hand and help you in:
- Seeking a mortgage
- If you require a home loan, a high credit score will ensure that you get a low-interest loan
- Applying for the best possible rates on credit cards
- Getting easy approvals on business loans
- Reducing deposits on utilities
Repairing your credit file can help you obtain a better score, which has a two-tier effect. It will not just help you get short term credit with credit cards, but also make it easier to obtain a loan that could big enough to finance a house, a medical emergency or even a business opportunity.
Want to find out more about Clean Credit? Repair my credit file now!