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How to clean up your credit file

Discussion in 'General Property Chat' started by Colpio79, 27th Feb, 2016.

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  1. Colpio79

    Colpio79 Member

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    Hi there.

    I have some marks on my credit file from arrears interest thanks to a bad investment I made a few years ago. Have managed to pay out the interest arrears , however it is still on my credit file.

    Am wanting to know what tips you have to remove any black marks or how can I get borrowing again?

    Have got a small $1,000 credit card which I pay off regularly, does that build up points on the new system veda has?

    Any tips appreciated as I want to look at buying a property one day
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Wait is really all you can do unless those credit marks have been listed unfairly or incorrectly
     
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  3. Colpio79

    Colpio79 Member

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    No they are fair listings. I fell into arrears unfortunately and had to sell my properties.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Time is your friend - you'll either need to wait for the defaults to drop off or go with a non conforming lender.

    What size are the defaults?

    Cheers

    Jamie
     
  5. Colpio79

    Colpio79 Member

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    Its just a few arrears which were mended when I sold assets to cover it. I was 6 months in arrears.
     
  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    there should be a default amount noted, or collections access note on the file.

    Best to access your file to see the amounts and when they are dated.
     
  7. retire@45

    retire@45 Active Member

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    For what it's worth and speaking from first hand experience, just wait it out, at the time it seems unfair and takes forever but if you have defaults and can get finance you will really pay through the nose on interest and unfavourable terms etc.
     
  8. TMNT

    TMNT Well-Known Member

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    I thought the latest credit changes and the score were supposed to stop the banks severely punishing you for a single or few problrms that could have happened years ago
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    There are lenders that are willing to lend to people with defaults. You pay through the nose though, the exact amount depends on the number of defaults and the LVR needed. It's not pretty.

    @TMNT Most lenders will easily forgive a single small problem that was a one off. Utility bills are common in this category. 6 months arrears on a mortgage isn't a trivial thing though. You need to either go to a non-conforming lender and suck up the costs, or wait until it drops off the CRAA in 5 years.
     
  10. TMNT

    TMNT Well-Known Member

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    Obviously 6 months arrearas is a big thing
    But i was under the impression that many lenders wont touch you with even one default.
    Unless its under 100.

    Its pretty easy for you to move house. Let the company know of your new address. They stuff up and send it to the old address or letter goes missing in mail and the phone bill is like 120 and years later its 1000 dollars and stoos you getting a 500k loan for 5 years
     
  11. Ted Varrick

    Ted Varrick Well-Known Member

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    A colleague I once associated with, who I haven't heard from in a long time, might associate a solution in the form of changing your name by deed poll.

    I don't know if this would help or not though, having never been in your situation, and being quite happy residing in my current location.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Changing your name doesn't change who you are. Your CRAA has the provision for an alias.
     
  13. Ted Varrick

    Ted Varrick Well-Known Member

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    Thanks, Peter, I wasn't aware of this, but one would assume that the masters of CRAA have staff actively monitoring all changes of name just in case, (and I only use this as an example), recalcitrant members of the building and labour hire industries cannot continue phoenixing their businesses at the expense of numerous flavours of creditors, both old and new?
     
  14. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    @Ted Varrick if they didn't track alias' it would be a very easy way to steal a lot of money without prior warning to the banks.

    1. Change your name several times, getting an ID in each name.
    2. Apply for a bunch of loans getting cash out across multiple alias'.
    3. Leave the country before the loans go into default and you get caught.

    Obviously your credit record will alert the banks to this before you get too far, so I wouldn't recommend trying it.
     
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  15. Joshwaaaa

    Joshwaaaa Well-Known Member

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    We just got 2 marks removed from my partners file. Both unpaid bills from moving out of a shared rental 6 years ago. But the amounts were still unpaid and we used this as a bargaining tool, pretty much told them we were only going to pay up if they removed it, otherwise we will be happy to wait the 5 years for it to clear. Which seems to have done its job.

    Obviously wont help in this situation but yeah
     
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  16. Elives

    Elives Well-Known Member

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    how did that work they showed you that they had removed it and then you paid them?
     
  17. datto

    datto Well-Known Member

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    Any tips on how to clean up a police dossier?
     
  18. Joshwaaaa

    Joshwaaaa Well-Known Member

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    We just made sure we had everything in writing that was agreed upon before making any type of payment.
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Spent convictions legsation means certain lesser offences drop off your record after a.certain time period. Similar to the credit file.
     
  20. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Changing names can possibly 'help' the unscrupulous person who could gradually acquire id in the new name without linking to the old. You can also change the spelling of your name by 1 letter and get away with it sometimes. Its getting hard to do now.

    You may see ex.bankrupts who have done this including one that promotes investment related things.