What is Credit Repair?

A credit report contains information such as; your address, current and past employment history, credit applications, overdue accounts, defaults, judgments, clearouts, crossed or linked files, past names and bankruptcies etc.

Your credit report may be checked every time you apply for any loan such as credit cards, mobile phone contract or even a car leasing. These are called enquiries and may also be listed on your report.

Credit Repair is the term used to describe the removal or correction of the above listings and information to improve your “credit rating”.

It is important to remember that paying your debts may only update negative information on your credit report such as defaults, judgments and overdue accounts to a paid status. This is not what we call credit repair. Credit Repair Australia™ aims to help remove these negative listings which may allow you to obtain finance.

The difference between your credit report and your credit rating is that your credit report lists information about you and is sometimes used to determine your credit worthiness. Your credit rating is described in broad terms as being the score you get when you apply for credit.

Most credit providers have a minimum credit score or requirement you must reach to be eligible or to be approved for a loan (this varies amongst all creditors). This score may also determine your interest rate and or fees/chargers.

Your address, current and past employment history, overdue accounts, defaults, clearouts, credit applications, judgments, crossed or linked files, enquiries, past names and bankruptcies all have the ability to affect your credit score.

This is why it is important to ensure that this information is correct, up to date and accurate before you make an application for finance.

Choice magazine released an article in January/February 2004 stating that “there are over 13 million credit reports held in Australia, 1.5 million of which contain adverse listings.” This same report found quite a large percentage of files to contain errors.

Credit repair is when these errors are removed or updated to reflect the correct position, which may allow you to obtain finance, lower your interest rate and fees or charges, where you may have been restricted from doing so in the past.

If your shopping around for bargains and discounts on food, clothing, household goods and travel then forget it because any savings you might make could be swallowed by high interest, fees and charges caused by your bad credit rating.

Credit Repair Australia™ can help you obtain a free copy of your credit report.