Credit-Reports

What is in a credit report?

Your personal credit report may include details like; past addresses, previous employment history, current employment, credit applications, overdue accounts, judgments, clear outs, crossed or linked files, name changes and bankruptcies etc.

You can sometimes Improve your credit report by disputing mistakes and they do sometimes contain unfair mistakes. This may allow you to obtain a loan you would be otherwise refused, lower your current interest rates and lower upfront and ongoing fees.

Many people believe that credit ratings can be improved by borrowing small amounts, obtaining low interest credit cards or even paying back debt.

Unfortunately, Australia is one of the few countries in the world that follows a negative credit reporting system.

The Australia. system only records negative occurrences, there is no positive credit to balance any small negatives. When you pay your old debts, the negative credit stays. It’s like a life sentence.Therefor, your paid negative listing is no better than anyone else’s unpaid negative listing.

This means a person will not get much further by doing the right thing and paying the old debt.Then, when it comes time for you to apply for credit, the credit provider taps your name into their computer to determine your suitability for the loan and bingo, there you are for something that happened years before.

The whole process can be assessed by algorithms, with limited human input and the result is often a ‘no‘ with no way for you to reason with the person giving you the bad news.When your name pops up on the computer screen with the smallest of blemishes the provider can reject you if you, even a missed phone bill can stop you getting a loan sometimes.

It’s a little known fact that when you make any application for a mobile phone on a contract, or maybe apply for an interest free store offer, you may have consented for your particulars to be given to a credit reporting agency.These enquiries include almost every application for credit including personal loans, credit and store cards.

22,953 bankruptcies were declared in Australia during 2005. The reality is that many bankruptcies are avoidable, this is due to a variety of options now available to debtors that many people know little about. It is possible to stop the harassing phone calls and letters, freeze the interest on your loans, postpone your payments and most importantly recover from a stressful life of debts.

There are over 13 million credit reports held in Australia, 1.5 million contain defaults.

What is a debt agreement?

A debt agreement resolves your debt without you becoming bankrupt. It’s a legally binding arrangement with creditors and stops the harassing phone calls and letters. You can freeze payments and interest upon acceptance, release you from your debt and pay less than you owe, put a hold on payments and even transfer assets or property such as cars, from your name to your creditors.A debt agreement may also allow the repayments to become affordable.