Frequently Asked Questions
Do you pay your bills on time?
Payment history is a major factor in credit scoring. If you have paid bills late, have collections or bankruptcy, these events won’t reflect well in your credit score.
What is your outstanding debt?
It is important not to use all your available credit. If your credit cards are maxed out, lenders will use this information and compare it against your credit limit to determine that you are not managing your debts wisely.
Do you have or have you had a business or company?
The status of your business or companies in the past or present will affect your personal ability to obtain credit. You must check these business reports in addition to your personal credit reports. We have not included company and business details in this credit report summary.
Do you have a long credit history?
Generally speaking, the longer your history of holding credit accounts is, the more trusted you will be as a borrower.
How long have you been at your address?
If you frequently move addresses, this will affect your credit score. As a rule of thumb, if you have been at your address for more than 2 years, this may improve your score. It is important that your personal details, including current and previous addresses, are correct.
Have you changed your name or moved interstate?
If you have applied for credit after changing your name or moving interstate, it is possible that you could have another credit report under a different name or licence number. This can affect your ability to obtain credit.
Have you applied for credit recently?
The credit application and enquiries can make up approximately 50% of your credit score so you need to be mindful and if you have a number of recent enquiries this can be construed as being negative by the credit reporting agencies. Only apply for credit when you really want it.
How long have you been employed?
The length of time you have been with your employer indicates to lenders the stability of your financial situation and your ability to repay a loan.
What is a credit reporting agency?
A credit reporting agency is a company that collects and maintains your credit information and provides it to lenders, creditors and consumers in the form of a credit report. There are several credit reporting agencies in Australia, but we’re most concerned with the big three: Equifax, Experian and illion.
What is a credit score?
A credit score is a number generated by a mathematical formula that is meant to predict creditworthiness. Credit scores range from 0 to 1,200. Some credit reporting agencies also have negative scores which may occur where you have an account that is currently more than 3 months overdue, or where there is public information such as court actions or bankruptcy recorded on your credit report. Simply put, the higher your credit score, the better your credit profile looks. A low credit score may cause creditors to see you as a higher risk, meaning you may be declined for credit or have credit approved at a higher interest rate than someone with a good credit score. This means having a high credit score could save you thousands of dollars in interest.
What is a credit report?
A credit report contains information about who you are and a history of your financial behaviour. In many cases, the credit report is the basis of evaluating your credit rating or determining your credit worthiness
What is on my credit report?
Each report usually consists of your name, address, current employer, date of birth, a list of lenders you’ve applied to, any late payments, defaults or judgments, clearouts, crossed or linked files, directorships and bankruptcies, etc.
How was my credit report created?
The first time you applied for credit, the lender will have likely given your details to a credit reporting body that now holds your credit report.
How does my credit report affect me?
Every time you apply for credit, or when you are late paying a bill, it all goes on your credit report. If you have black marks (like defaults or late payments), you may be considered a “bad” credit risk, even if they have been paid. When you apply to borrow money, the lender will check your credit report and may decline your for finance based on the negative information on your credit report.
Does paying the debt fix my credit rating?
Paying your debt attached to your default listing will not remove it from your report, it will however update it to paid and remain on the report for five – seven years.
Can I just do it myself?
Yes, it is possible; however, you will need to identify a breach within the legislation before the default was listed or identify a contestable reason for removal.
Are you lawyers or financial advisors?
No, we are not financial advisors, lawyers or solicitors.
Do you provide a refund if you’re not successful?
Yes, if we are not successful you may be entitled to a full refund subject to our standard terms and conditions.
Have you been very successful with this process?
Our success rate is between 90%-97%.
How long does credit repair take?
It is inappropriate for anyone to promise a particular time frame, however many clients experience a result within 1-8 weeks. Results depend on your individual situation.
What is a Debt Agreement or Part IX?
A Debt Agreement, otherwise known as a Part IX, is a way to come to an affordable arrangement with your unsecured creditors which is legally binding and will (if your creditors accept it and you complete your obligations) release you from that unsecured debt. A debt agreement can be proposed for a maximum of 3 years or 5 years in certain circumstances.
Is it the same as Bankruptcy?
A Debt Agreement is an alternative to Bankruptcy. However, by submitting a Debt Agreement proposal you are committing an “Act of Bankruptcy”. If the proposal is not accepted by creditors, a creditor can use this to apply to the court to make you Bankrupt.