Your Credit Rating and Credit History
The importance of your credit rating?
Defaults are usually preventable. If you contact the lender or creditor and make firm arrangements to pay outstanding payments over a period of time (such as $100 per month) and as long as you adhere to that agreement they will not place a default notice on your file. But it is up to you to contact them, it is not their job to save your credit rating, that is your responsibility. Note that if you are over 60 days late with a payment, the lender has the right to record a default, so act quickly. Once a default is on your credit file it will remain there for 5 years, and if it is recorded as a "clear out" then it will be there for 7 years. Talking to your lender is important, and you must speak honestly with them. They have heard every hard luck story in the book, and will spot anything that is less than truthful..
Unfortunately life isn't always rosy. Sometimes our finances get out of control, and a default appears on our credit file. If this has happened to you, you need to work hard to get your credit rating back as fast as possible so that you are not disadvantaged in the future.
The first thing you have to do is get back in control and start driving your life instead of letting others determine where you are heading. Lets look at some common credit notations and then we will suggest a way around them.
How Do You Deal With a Bad Credit Rating?
- First you need to search your credit file so that we know what we are dealing with. You can check your own file by going to MY CREDIT FILE click on "my credit file" and fill out the online application. This will cost you a fee that must be paid by credit card. However if you scroll to the bottom of the page, you can get the details required to post or fax an application. This is FREE but it will take up to 14 days to receive a reply.
- We can also perform a FREE CREDIT CHECK on your behalf at our cost, and professionally evaluate the results for you. We are happy to do this with loan applicants who feel that defaults may be recorded. Your written permission will be requested in all cases before we will perform the search.
- You may find that your file is clear of defaults etc. In that case there is no further action required. However if you have defaults on your file you need to explain the circumstances to us. If there is a reasonable explanation and we are upfront with it, it looks much better from the lenders point of view than if we try to ignore the problem. Also it is easier to decide which lender will be the most receptive to your situation, and at the best available interest rates.
- Once we have the information we can judge your prospects for a loan with our panel of lenders. This is where our years of experience come in to play. If you were to approach a number of lenders yourself who each perform a credit check, and each decline your loan application, that will decrease your chances with other lenders who can clearly see that you have already been refused credit by a number of lenders. When you are in these circumstances it is better to leave the job to an experienced broker such as ourselves. Don't make your chance of success any worse by applying through and inexperienced broker or an unsuitable lender.
- Various lenders will accept certain levels of defaults, even mainstream lenders on occasions, as long as they are approached in the right way.
- Sometimes it is possible to have defaults deleted. Judgements and Bankruptcies generally can't be altered on your file, but that doesn't mean that we can't try on your behalf.
Can I get my Default taken off my Credit File? This is usually very difficult, but it can be done. The recording of defaults is governed by strict rules. We have been successful in having defaults removed for clients if we can show that these rules have not been followed. If you have any doubt then please refer your credit file to us for evaluation. We have also established relations with a specialist credit default removal group who can often completely clean up your credit file, if the defaults have been recorded incorrectly.
There is a fee for this service, but the costs will not usually be as high as the penalty for not removing them.
If you wish to take advantage of this service, please complete a small application form, and you will be contacted to discuss what can be done and any likely costs.
APPLY FOR DEFAULT REMOVAL
In summary make the most of your opportunity by working with us. If it is not possible to get a loan instantly, we will help you work towards getting yourself in position financially to get into your own home as early as possible.
Don't waste your time with inexperienced brokers, apply with the one who has the experience, and the one who is on your side.