Australian credit repair companies can help you improve your borrowing ability by correcting errors in your credit file.
If you’re looking to improve your credit rating after finding a default or court action on it, or after identity theft, one option you have is credit repair. Credit repair companies in Australia, can help repair your credit reputation and improve your chances of getting credit in the future.
These companies can initiate an investigation into questionable listings in your report. If your credit rating has been devastated by fraud or erroneous listings from credit providers, credit repair companies can help. They can also check whether your negative credit listing are correct, disputing entries that are against the law so as to clean your file and make you look more attractive to lenders.
What is credit repair?
Credit repair is the process of correcting mistakes in a credit file with the aim of improving an individual’s credit score. Your credit file contains your credit history, including certain types of current accounts and whether you have missed any payments, or had defaults, court actions, credit enquiries, bankruptcy or insolvency notes against you.
Any infringements caused by fraud may also appear on your credit file, denying you the opportunity to get credit from lenders. Credit repair is performed by various agencies who are experts in investigating listings in your credit file and removing any defaults, court actions, or repayment history indicators (RHI) listed in error.
Paying an outstanding debt associated with an adverse listings on your credit file will not in itself remove the listing automatically. Listings are removed if the credit provider has not adhered to the laws regulating credit reporting in Australia. A credit repair agency can investigate and argue for the removal of any erroneous listings or listings made in violation of credit laws.
How does credit repair work?
Ordering a free copy of your credit file from a well-known credit reporting agency is the first step toward improving your credit rating. Every individual in Australia has a right to order a copy of his or her credit file for review. Here is how you can implement credit repair on your credit file:
- Order a copy of your credit file. Get a copy of your credit file and go through it to check for any incorrect listings or signs of fraud. This can include defaults, court actions, and repayment history indicators (RHI) you were not advised about, or actions of the credit provider that you thought were unfair.
- Contact your service provider. If you notice any mistakes in your credit file, contact your credit provider and ask for an explanation. A credit repair agency can help you contact the lender in question. If the lender admits to a wrong listing, they will correct it on your behalf.
- File a credit repair application. If your credit provider disputes a listing you feel should be removed, your next option is to hire a credit repair agency to investigate and initiate an inquiry into the listings on your behalf. If the agency can help you, they will review your credit file for any mistakes and listing violations. Keep in mind that each repair company will have their own fee structure, however, some will offer a complimentary initial assessment.
- Decide what to remove. With the guidance of the credit repair agency you hire, you will determine what can be removed from your credit file. A final fee will be charged for every default that is successfully removed from your credit file, and your credit score will then be reviewed without the incorrect listings.
How to compare credit repair companies
- Transparency of fees. Credit repair agencies can sometimes charge large amounts to review and make corrections to your credit report. Ensure that the agency you choose charges reasonable fees and that they will fix problems with your credit file.
- Reputability. There are many disreputable credit repair agencies that promise to repair your credit history, but are really just out to take your money. It’s important to examine the reputation of a credit repair agency before enlisting their services.
- Customer reviews. Listening to what other customers say about a credit repair company can give you a better picture of what their services are like. Delays in making corrections, charging outrageous fees or failing to improve credit reports will definitely lead to negative online reviews, so be sure to go for an agency with a good track record and success in repairing credit reports.
How do I get a copy of my credit file?
Getting a copy of your credit file is the first step to the credit repair process. The law dictates that all lenders have a right to access credit files from credit reporting agencies whenever they wish. Most Australians request a copy of their credit file after they have been victims of identity theft or after being denied credit. However, it’s important to check your credit file regularly so as to ensure your credit score remains healthy.
Ensuring that your credit file is updated and free of errors can be your ticket to successful credit applications, so you should try and order a copy from top credit reporting agencies each year. Most reporting agencies will dispatch a free copy of your credit report to you within 10 working days, or you can pay a fee to get it dispatched to you within a day or two. Learn more about how to get a copy of your report.
Why is it important to check my credit file?
Here are the main reasons why you should check your credit file regularly:
- Looking for incorrect personal details. Information about your address, employment history, names and current employers needs to be accurate so that you are better protected from identity theft and to ensure your personal information is in order when applying for credit.
- Check for incorrect defaults. Mistakes in your credit file can be very costly, denying you access to credit for up to seven years in cases of serious credit infringements. Checking for erroneous defaults, court actions and repayment history indicators (RHI) may be a result of errors from lenders or identity theft is necessary to keeping a clean credit file.
- Initiate credit repairs. Once you pinpoint mistakes or disputed listings in your credit file, you can then hire a credit repair agency to investigate them and look for grounds for their removal.
Frequently asked questions
- How much does credit repair cost?The specific fees will differ between credit repair agencies, but you are likely to pay at least a thousand dollars to have a listing removed from your file. You normally pay per listing removed.
- How can a credit repair agency help?Trying to correct errors in your credit file on your own can be a daunting task, as contacting credit providers or providing proof of erroneous listings can be challenging. A credit repair company will have professionals who understand the legislation and so be able to point out regulation infringements use their relationships with lenders to push for faster corrections.