As part of the ongoing effects of the recent global economic crisis, lenders have strengthened requirements for borrowers, making it even more difficult to obtain financing to buy a home, start a business or make necessary purchases. This has created a situation where many potential borrowers who may have been able to qualify for loans in the past could now be turned down, particularly those with bad credit.
In Australia, the credit reporting system is based solely on negative marks, which means that only bad credit is shown on your credit file. Additionally, these blemishes may stay with you for up to seven years, meaning that each time a potential lender runs a credit check, they will see every court judgment, default, past due and bad check, as well as any enquiries or bankruptcies that may have taken place during that period. This can make obtaining a credit check a stressful experience and can, in some cases, make it impossible to borrow funds. This is also why so many consumers cringe when a conversation turns to topics like the Credit Reference Association of Australia.
To complicate things further, simply paying off a defaulted account is not cause for its removal from your file. While the debt will be listed as paid, it can still affect your ability to obtain credit throughout the reporting period. Having an impaired credit status, whether still in default or marked as paid off, can make obtaining any type of loan or credit line more difficult and can result in paying more than five times the interest rate charged to borrowers who do not have credit issues.
Fortunately, there are ways to repair bad credit and take away the angst connected to hearing mention of the Credit Reference Association of Australia. Some negative listings that come up on your file when a lender performs a credit check may be unfair or disputable. If this is the case, a credit repair company can assist you in obtaining the knowledge you need to remove negative marks on your credit report and to end your fear of the Credit Reference Association of Australia forever.
If you believe you have contestable or unfair negative information on your credit file, speak to a consultant at Malouf Group Enterprises to learn how we can help.