Is your New Year’s Resolution to buy a home? Check your credit rating doesn’t have a shady past first.
8 January 2013
As the calendar has rolled to the 2013 New Year, many Australians have declared their intentions to knuckle down and put together a deposit for a home – but a consumer advocate for accurate credit reporting warns – before people apply for a loan, they should check they don’t have a shady past with credit they are not aware of.
CEO of MyCRA Credit Rating Repair, Graham Doessel says there are many reasons people can embarrassed with a bad credit rating and refused a home loan at the time of finance application, and the reason is not always as simple as failing to make payments on time.
“People have got to be dedicated to be able to get together the minimum 10 per cent deposit that is generally required to buy a home today, but some people are getting to the credit check and are told they have bad credit history and they have no idea why,” Mr Doessel says.
Prospective buyers may apply for a loan, only to be refused due to credit file defaults which show up on their credit report. Any creditor is able to place a default on a consumer credit file if a repayment is later than 60 days. Credit listings range in duration from 5 to 7 years depending on the listing type.
Mr Doessel says home buyers do not always have bad credit because of something they have done wrong.
“Paying your bills on time should, but doesn’t always guarantee a clear credit file. As credit repairers, we see a multitude of instances where the creditor has made a mistake and placed a default or other listing on the consumer’s credit file when it shouldn’t be there. Often it’s not until the credit file holder applies for credit that they are made aware of it, but at that time it’s too late, they often lose the home they are buying,” he says.
“Credit file mistakes are common, and can be because of simple human or computer error but the end result is that the consumer is blacklisted from credit for at least five years unless they can prove the listing is unlawful.”
Consumers can check their credit file for free every year, by requesting a copy from Australia’s credit reporting agencies.
“It is good financial practice to request a copy each year, but there is never a more important time to make sure your credit report is accurate as BEFORE you apply for a home loan, so you don’t lose the home you have your heart set on. Credit reporting mistakes do happen, but the watchdog is you,” he says.
If a default has been listed ‘unlawfully’ you have the right to request its amendment, or removal from your credit file.
“If there is something amiss on your credit report, if you find have a shady past with credit that you believe is unfair, don’t let that one notation ruin your life. It’s not easy to dispute a credit listing, but if it shouldn’t be there, it’s a point worth fighting for,” Mr Doessel says.
People can visit http://www.mycra.com.au/credit-file-request/ for help to get their credit report.
Graham Doessel – CEO Ph 3124 7133
Lisa Brewster – Media Relations firstname.lastname@example.org
MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.
Image: digitalart/ www.FreeDigitalPhotos.net