Credit repair companies in Australia are available to help you get out of debt.
While there are lots of companies that claim to do credit repair, you should research each of them carefully before choosing one to give your business. Since you will have to share your personal and financial data with the company and its representatives, it makes sense to have absolute trust in them. Once you have handed over the financial reigns to one of these agencies, they will look into your credit file and look for ways to improve it.
There are many credit repair companies in Australia. Be sure to ask them many questions about how they work, and seek professional financial advice before agreeing to pay them for their services.
One such company is Princeville. They’re based in Sydney, and can review your credit file on a complimentary basis. They’ll look through your credit file before they decide whether they can help you or not. All you need to do is supply them with your credit file and they will tell you how they can assist.
How does the credit repair process work?
The process that companies will take you through will generally run along the same lines whoever you work with, and the usual steps you will follow are:
- Read your file. Look at your credit file so you can see what defaults or other adverse information is showing. From there you can figure out any that you feel are unjust and these can be pursued.
- Get a complimentary assessment. The credit repair company will typically assess your credit file on a complimentary basis and advise if they can assist you or not.
- Fill in credit repair application. If the repair company can assist you, you will need to provide details of any of the faults you want investigated.
- Pay an initial fee. The company will then usually take an initial fee before reading and reviewing your application. At this stage they prepare your case to the credit provider who listed you.
- Negotiation. The company will start to negotiate on your behalf with each credit provider. The company will usually take a fee at the beginning of the negotiation for each adverse listing that you want removed.
- Success. If successful, you will be advised of the black marks, and will pay a final success fee. If unsuccessful, the negotiation fee will be refunded, and the success fee will of course not be chargeable .
- Loan Ready. Once your credit file has been repaired, you will be able to access credit and often at a lower rate than if you were credit impaired.
How does a credit file work?
The only way any lender can viably lend money is to look into the financial background of potential borrowers, mainly to see whether they appear to be trustworthy enough to lend to.
The resource that lenders use to research customers financial histories is a credit file.
What can they see?
Every financial connection that you have is listed in some way on your credit file. Details of any bank accounts you hold, your credit card information, details of any store cards or personal loans you have, home loan information, and any other form of credit account is listed.
Details of how much you have borrowed, how much you have paid back, whether you have missed or been late with a payment will all be visible on your file. These are not the only details that can be viewed on your credit file however.
If you have defaulted on a simple household bill like your telephone, or electricity bill, this will show up on your file. Other things that will appear on your file are details of any credit application you have made, as well as any financial dealings associated with your property.
Why was my application rejected?
There can be a number of reasons that you may fail a credit application. Some of those reasons can be overcome, whilst others are a little harder to fix. This can include the lender believing you won’t be able to make payments or afford the loan, or problems relating to your credit file. Look specifically at why your credit card application may have been rejected.
Credit repair frequently asked questions
- Can I use credit repair companies if I have overspent my credit cards and I am in deep debt? Typically a credit repair company can help you fix your credit when it has been damaged due to defaults, court actions, repayment history indicators (RHI) or fraud. They can also assist with complaints about irresponsible lending as you may have been given more credit than you could comfortably repay. You may also have been in hardship and this has affected your ability to pay. However, sometimes the assistance of a debt counsellor can be used to help you figure out the most effective way to clear off your debt and to learn budgeting skills.
- If I have been a victim of identity theft, can these agencies help me? Yes, in cases of fraud or identity theft, a credit repair company is one of the strongest lines of defence. They understand how to work with credit card and other companies to repair the issues caused by fraudulent accounts and charges. You should not have to live with a bad credit rating because of some fraudsters’ misuse of your identity.
- I have tried to fix errors on my report myself but got nowhere. Can a repair agency help me? Yes, credit repair agencies have a better understanding of how to deal with the credit providers, ombudsman services and credit reporting bureaus and get errors wiped from your credit file. Through their relationships with these companies, and knowledge of the rules that govern credit reporting, they can prove that data is in fact mistaken and work to get your good credit rating restored.
- Do a lot of Australians have errors on their credit files? Indeed, more people than you think have errors on their credit files and they usually do not know it until they are denied a credit card or a loan. It is estimated that 15 percent of credit active citizens have errors on their credit report. These errors need to be dealt with by credit repair professionals.
If you are researching credit repair companies, be sure to get opinions of people that you trust. You will probably be surprised to find out how many of your friends and family have had credit error problems that they needed assistance to get fixed. Once you start the process be patient because it will take a bit of time to get your credit file back on track. While these companies will try their hardest to get your file repaired as fast as possible, they are by no means a quick fix to your credit problem.
Is the credit repair process worth it?
This depends on what you need the credit for. If you are in a situation where you just want a credit card with a limit of a few thousand pounds to go shopping, then the process is probably quite expensive and unnecessary. If on the other hand you are a family who are desperate to buy a home then the money you spend to clear your file is worth laying out.
The cheapest way to have a clean credit file is keep a regular check on what is going on with your scoring, and to make sure you do not ever default, or miss any bill payments. Should you run into trouble there are avenues that exist to help you.Back to top