When you apply for any form of credit or finance with any financial institution; the first action they will undertake is to review your credit history file and your credit rating.
This is a financial record held by the Credit Reporting Bodies (CRB) that contains information about your past financial activity; such as applications, any overdue accounts that may have been listed with the CRB’s, your previous credit applications weather approved or declined, court proceedings undertaken against you being either a summons to appear or a Default Judgement, and any commercial data; such as public record data for instance directorships, previous directorships & Bankruptcy.
With Australia moving towards a ‘Positive Credit Reporting System’, any late payments towards your accounts is now recorded and will now also form a part of your overall credit rating and formulate your Credit Score.
The national average for Australia is 699. Anything under this can inhibit your chances of obtaining the credit or finance that you seek. You may also be required to pay a higher rate of interest than other applicants due to your overall score; your relative risk indicators based upon the population; or adverse data being present upon your credit history file.
Credit File Investigation or External Audit Services can potentially help and assist you to recover your credit rating and can potentially increase your overall score, and secure a more favorable outcome with lenders by decreasing the interest they request as you are not at the higher end of the spectrum of potentially defaulting.
When lenders look at your credit report, they assess the risk of supplying you with a line of credit or finance. If you have a positive rating or score – meaning you have made timely repayments and avoided defaults and limited the number of applications you have made within a specific industry or timeframe – then lenders will see you as being low risk, and offer decent terms on loans saving you thousands of dollars over the life of the line of credit or finance.
On the other hand, having adverse data present, being defaults, court actions or numerous applications within a limited timeframe or industry type gives your potential lenders the impression that you are more of a risk to loan money to; that you are at a higher risk of defaulting in the future; and that due to the number of applications that may be present, that you have been shopping around for credit or finance. At present, Australia is transitioning towards a ‘positive reporting system’, however we are not there yet, due to this; a future credit provider or financier will only see applications that you make or have made; not weather you have been approved or declined; so they will always lean towards you have been approved for all applications and may potentially be financially over-committed.
Due to this, they may decline your application, request a higher interest rate to cover the risk you present, meaning that you will pay thousands extra just in interest over the life of a loan contract or even request security or that a guarantor be added to the contract. Some pay day lenders charge 48% interest…..who can afford this???
So; a negative credit rating effects not only your ability to secure loans from lenders you wish; but also your ability to obtain lines of credit in the future. If you do manage to secure credit, it will most likely come with less desirable terms of repayment adding up to potentially thousands of dollars due to higher interest rates.
Professional Credit File Investigation services can help you to properly evaluate your credit history file, and determine if; due to your individual circumstances; the correct credit management process has been undertaken or even if the applicable financial hardship has been applied; and make a plan to restore your credit rating and open up new avenues of financial freedom to you and your family.
During the investigation process, we may even be able to reduce the amount that your creditors are requesting potentially saving you thousands.
At Debt Negotiators, we can potentially reduce outstanding balances, potentially remove incorrect and unjust adverse listings such as defaults and court actions; increase your overall credit score making you more appealing to potential credit providers, and all this will secure your financial future and freedom.
You will gain more options, products and services available to you for future loans; and secure the best available deals on any line of credit or finance and enjoy a stress-free life knowing that if you were to apply, you have nothing standing in your way.
The Credit File Investigation process has several steps, each designed to release you from the burden of a bad credit rating: Believe it or not, many credit reports are actually riddled with error – as many as 20-40%.
Meticulously check them for potential errors. You can challenge listings which you believe to be incorrect. If they are deemed to be incorrect, they can potentially be removed from your credit history file, improving your standing, your overall score and lowering the risk you present of defaulting.
At Debt Negotiators we have the industry experience and knowledge that allows a unique insight into the correct credit management process that has been undertaken regarding your account. After discussions and analysis with you, we will determine if the appropriate level of care has been provided to you given your individual circumstances, from this we can then formulate a dispute to your creditors contesting the listing.
After in-depth analysis of the circumstances that surrounded the adverse listing being applied to your credit history file; we dispute the listing on your behalf. We outline any errors or inconsistencies that may have occurred to your creditors.
Should your creditors for any reason not agree with the dispute that we present to them, we have the option of involving the credit reporting bodies or the industry specific ombudsman to assist in the mediation of the dispute as they act as a ‘referee’.
After successfully disputing or contesting your listing, Debt Negotiators can on your behalf see resolution in as little as 30 days dependent on the circumstances that lead to the listing. At times this may take longer should we need to have a CRB or Industry Ombudsman assist.
During the course of the investigation Debt Negotiators can also attempt to negotiate the amount that you may be requested to repay potentially saving you hundreds or thousands.
Debt can be repaired on your own, but is much easier with the help of professionals and industry leaders who understand your financial situation, and how to get you back on track. Debt Negotiators have a tried and tested methodology that we tailor to your individual situation and circumstances, to provide you with lasting credit file and repayment solutions.
With our help, you can live a life free from debt and have the freedom that you so wish for. Contact us today to arrange a free consultation with one of our friendly consultants.