Credit Enquiries & Removal of Credit Defaults:

Every time a person makes a credit inquiry, meaning, every time a person makes an enquiry about obtaining credit, this is recorded on the person’s credit file. Usually, these credit enquiries will remain on the file for up to five years. It is important to remember that if you make frequent credit enquiries, a future lender may turn down any further credit application. This is because that lender may come to the view that you have been frequently turned down by other lenders and this is a sign that you may not be a reliable debtor. Notations relating to credit enquiries do not usually illustrate which have been approved and which have been declined.

Credit Defaults are serious notations on your credit record. These usually state that you have failed in your obligations to pay back a sum of money when it was due. Usually, these notations will remain on your credit record for up to five years, but if a default is deemed serious, it may remain on your file for up to seven years.

Obviously, whether a person is an entrepreneur in need of credit to assist in their business enterprise, or a private citizen looking to buy a home to live in, it is in their interest to have a good credit history.

A bad credit history can be a great burden on a person’s ability to develop financially and may prevent him or her from establishing a secure and financially prosperous life. For these reasons, it is important to avoid defaults and poor credit ratings. Unfortunately, if for whatever reason a person has lived through a rough period of bad credit, owed money to creditors and was unable to repay them on time, these matters will likely be recorded in his or her credit file.

If these notations are genuine, there may be little that can be done to remove them. They will expire after a period of five to seven years, however if they are recorded, the best that a person can do is try not to compound the damage by extending the poor credit rating with further defaults. Two ways that this can be achieved is through entry into agreements with creditors which allow a debtor to tackle their problems more efficiently and economically. For more information, please see our sections on “Debt Consolidation” and “Debt Agreement.”

Often, however, mistakes can be recorded on the credit file which will cause problems for the individual who may be seeking credit in the future. This is because a poor credit record will have a material impact on the likelihood of future lender to lend money. For the removal and correction of mistakes form the credit file, see our sections on “Credit Rating Repair” and “Credit Repair Review.”

If you believe that you require legal advice or assistance with the removal of credit defaults, you can contact our Sydney credit repair lawyers by telephone on (02) 9233 4048 or email us at info@navado.com.au. We can provide you with legal advice and credit repair legal assistance, at affordable and very often for reasonable fixed legal fees. Our credit repair legal team often works alongside our Mortgage Brokers and have a detailed understanding of credit history and credit history problems that applicants for loans frequently or usually encounter. Please peruse our "Locations" tab for a complete list of our offices located accross Sydney.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.