Credit Repair - It is Possible
The Scams - Watch out
While Credit Repair is possible it is important to look out for the scams, to find info on what to watch out for click here.
Credit repair
Contestable And Disputable Listings Can Be Removed From Your Credit Report There are over 13 million credit reports held in Australia, 1.5 million of which contain defaults on them. Research has found over 30 percent have errors on them (choice magazine, january/february 2004).No doubt the error percentage is just as bad in other countries if not worse.
The adverse effects of a bad credit rating can be intense, a small default or late payment can stop you from getting a personal loan, credit card, a phone on a contract or even increase the interest rate of your home loan.
Managing debt can be very stressful.
Managing debt you cannot afford may jeopardise your life style, career and health.
The cost and the terms of the debt is determined by a range of factors including your credit rating.
Private company’s collect your personal information and set up a file on you, to record every time you enquire about a financial product from a mobile phone contract, interest free retail offers to credit cards.
On your file they also record every time you are late (usually beyond 28 days) when making a payment or when you simply forget to pay a small outstanding amount on an account you thought was closed. These are known as defaults and give subscribers who read your file the impression that you have a “bad” credit rating.
There are over 2 Million default listings on Australian credit reports, God knows how many in the US or Europe. A default listing usually means a bad credit rating. Many do not even know they have a “bad credit” rating until they go to borrow money or apply for a job.
Your credit report affects every aspect of your financial life.
Every time you apply for any loan such as credit cards, home loan, mobile phone contract or even a car leasing your credit rating is checked.
Your credit rating determines how much interest you will pay for the home loan, car loan and credit card.
A “bad” credit rating means higher fees, charges, interest rate or even a refusal to provide you with any credit.
The cost of living with a “bad” credit rating may not be obvious at first. Your credit rating determines all your “fees and interest charges” that you will find buried in your monthly repayment statement.
Your credit rating determines your cost of living!
If you have a “bad” credit rating then chances are you are paying too much for credit.
So if you are shopping around for discounts, on food, clothing household goods, travel, forget it, any savings you may make you will pay for it with the high interest fees and charges caused by your credit rating.
Frequently Asked question
For a list of the most common and frequently asked question about credit repair check here.
