A person’s credit history can be obtained thorough inspecting their credit file. The credit file is a document that contains all essential information relating to your history and the administration of this file is subject to strict privacy laws in Australia. A credit report outlines your credit-activeness; it includes personal identification information as well as details of any applications for finance and defaults on loans or payments. Payment histories are however not listed in the credit file.
Credit reports are usually checked by lenders whenever a person applies for a loan to purchase an asset such as a home or a car. Poor credit reports can therefore lead to a loan application being declined, the imposition of higher interest rates or some other onerous condition. People who have a bad credit rating are therefore significantly disadvantaged if and when they try to get their lives and businesses back on track. The information that is contained on a credit record may include:
- A person’s name and name changes;
- Date of birth;
- Car license;
- Address and any changes in address;
- Employment history;
- Current employment;
- Credit applications;
- Default accounts;
- Court judgments;
- Clear-outs (when a creditor has tried to contact you but your contact details are no longer current);
- Cross-linked files; and
Unfair, contested and disputed entries in relation any of the above can be legally removed, in some cases.
Unfortunately, a bad credit record that is correct cannot be deleted, but it may become redundant with time. Depending on the type of negative record, that time can be between five to seven years. Some typical entries and the time they remain on the credit file, are as follows:
- Credit enquiries, remain on file for five years;
- Current credit accounts, remain on file for five years;
- Overdue accounts, remain on file for five years (if a debt is not paid for 60 days, this undischarged debt can be listed on your credit record);
- Clear-outs, remain on file for seven years (when a creditor has tried to contact you but was unable to reach you at the last known contact details you supplied to them);
- Court judgments and actions, remain on file for five years; and
- Actions under the Bankruptcy Act, remain on file for seven years (this includes debt agreements).
Removing errors can improve a person’s chances in obtaining a loan approval, reduce interest rates, fees and repayments and generally save on a person’s expenses that could amount to thousands of dollars yearly. As an example, a loan for only $300,000 at 13% interest calculated monthly for a 30 year period is an amount of $894,695. Reducing this loan to 10% interest paid monthly over the same period results in an amount of only $647,777. This means that if your higher interest rate is the result of a poor credit rating, and that rating contains unfair, disputed or contested information, you may be needlessly paying an additional $246,918 in interest over the period of the loan.
Correcting a person’s credit history is therefore essential to ensure that a person’s chances of obtaining a loan are not hampered, and secure smooth business and credit transactions where fees and repayments are kept to a minimum.
If you need legal advice in relation to your credit history or need any assistance in querying any item on your credit history, you can contact our credit repair lawyers in Sydney for assistance. We can provide you with legal advice in relation to your credit history at affordable and very often for reasonable fixed legal fees. Our credit repair lawyers often work side by side with our Mortgage Brokers and have a detailed understanding of credit history and credit history problems that frequently or usually arise. You may wish to contact us by telelphone on (02) 9233 4048 or email to email@example.com to make an appointment at our head office in Syndey CBD. Alternatively, we may see you in one of our branch offices. Please peruse our "Locations" tab for a complete list of our branch offices.
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.
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