Credit Repair

Credit repair means improving your credit rating so your credit applications look more attractive to potential lenders. To do this, your credit report is viewed and any negative listings that could be affecting your credit score are investigated. Steps are then taken to help improve or remove those listings.

Credit repair involves identifying what data is recorded on your credit file, identifying the data that is incorrect, and having the incorrect data improved or, if possible, removed. It’s important to note that if the information is correct, it cannot be removed, no matter how much you pay someone to do it.

Many credit repair agencies will promise they can repair your credit ratings. Debt Negotiators knows that only around 20-40% of Australian credit files have inaccurate data that can be corrected. In most cases, a debt recovery plan will need to be created to help you repair your financial situation and fix your credit rating.

Yes, you can apply to have your credit file corrected if you believe you have inaccurate personal information, genuine unfair listings, disputes on your credit file, or information that you believe should never have been listed.

If you find listings on your credit report that are inaccurate, and they are corrected, they will no longer impact your credit score. When negative listings are removed from your credit report, your credit score improves thereby improving your chances of successfully applying for loans and gaining more favourable terms.

There is no guarantee your credit report can be repaired as there may be no inaccuracies, you may just have to sit tight, seek free financial advice and put a plan in place to improve your credit rating through improved financial management and behaviour. Remember, this process won’t happen overnight. It will take time and patience to make a difference.

If your credit report is accurate and there is nothing to correct, you can still improve your credit rating over time by employing better financial practices, for example:

• Try and limit the number of times and amount of credit you apply for at any given time.
• Only take credit when you can afford it and only apply for as much as you can afford.
• Make an effort to pay your bills and make repayments on time.
• Let your creditors know you are having trouble making repayments so the debt isn’t automatically registered as a default. They may be willing to negotiate an informal or formal debt agreement with you.
• If you are currently struggling with unmanageable debt, seek free financial advice. There may be better options available rather than defaulting on payments, for example, you may be able to bring all your debt together into a Consolidation Loan with one affordable repayment, or you may be able to refinance your home loan.
• Keep up to date with your credit report and take action to correct data if necessary.

The first step toward credit repair is finding and correcting inaccurate data. It’s important to have all the details so that you can regain financial control.

1. Request a copy of your credit report from the three main credit reporting agencies. It can anywhere between a few days to 30 days to receive your report.
2. Review your report, including your personal information, any arrears, credit applications, defaults or other credit infringements, thoroughly and look for any inaccuracies. If you find any, make a note of them.
3. If there is a mistake in your personal information, or if there are duplications such as a debt being listed twice, contact the agency to have this corrected.
4. If your credit history has been incorrectly reported, for example, a credit default is listed when you didn’t default, a default was listed when it was in dispute or you see a fraudulent account listing, contact the creditor and ask for it to be removed. If they agree with you, they will request the credit reporting agency to update your report.
5. If you aren’t happy with the responses you receive, you can make a complaint with the appropriate Ombudsman on the  Australian Securities and Investments Commission (ASIC) website.

Although seemingly simple, the process of credit repair can be complex and lenders might dispute what you believe. Debt Negotiators specialises in supporting people through the credit repair process. Contact us if you need support or advice.

How long does this process take?

It takes approximately 35 working days to review your credit report and request changes, whether the credit repair application is successful or not.

Credit repair is able to help you fix:

• Errors in your personal information such as your name and address
• Duplication of records such as debts
• Debts that have been wrongly recorded against your name
• Incorrect or inaccurate repayment details such as defaults.

The time required to repair your credit will depend on what needs to be done. Correcting data inaccuracies can take anywhere up to a year or more. Where data is correct, you can still work towards improving your credit rating, however, this may take longer. Frequent payment defaults, for example, can stay on your credit file for up to five years. To improve this, you will need to put a plan in place to stop defaulting on payments and will then have to wait until the defaults are removed.

If you are feeling overwhelmed and despondent, give our friendly experts a call and we can help you assess your situation and plan a course of action to get you back on your feet.

Yes, you can. Simply follow the credit repair process and you can fix any credit inaccuracies yourself for free. If you’d like help to ensure that your credit repair process is as easy as possible, you can also choose to work with a credit repair company, such as Debt Negotiators.

A credit repair service will help repair your credit report on your behalf. In other words, they will assess your credit report, investigate any negative listings and refute any inaccurate data on your behalf. They will liaise with the relevant credit reporting agencies, creditors and where necessary, negotiate any court proceedings.

Although you can do this yourself, getting help from a trusted credit repair company gives you access to experts in credit legislation. Reputable credit repair companies will also have well-established creditor relationships in place.

Performing credit repair yourself is free. Credit repair companies will charge a fee to work on your behalf.

Before choosing a credit repair company, make sure you do your research.

• Ask for their fees
• Be clear on what services are being offered for the fee
• Understand their process before agreeing to pay
• Be careful of companies who ask for a lump sum upfront, as they don’t really know how much effort will be required or how much of your credit file is inaccurate.

A note of caution: Never respond to unsolicited emails offering you free credit reports. These are often credit report scams trying to trick you into giving out your personal information.

Debt Negotiators offers professional impartial advice on credit repair and finance management. Our friendly team specialise in helping you identify the right debt relief solutions based on your personal circumstances, including debt consolidations and debt negotiations. Contact us for a free consultation.

No, we cannot guarantee that we can repair your credit file as there may not be any inaccuracies to correct. If we do dispute records with a creditor and our application is rejected, we will review it and attempt to resubmit it for you.

Our team has achieved a higher than average success rate in dealing with the removal of unjust listings in credit reports. Our professional team has the contacts, knowledge and expertise needed to assist with your credit repair.