20/08/2016

Credit File Check & Repair

   

How to Understand the Importance of Your Credit Score and We will help you fix it.

As recent as a few years back, the term "Credit Score" was not very commonly used in our society. While there were who understood the term and its purpose, the mass majority, although realizing that there was a system out there that their credit, they did not have a term to stick to it. Today, however, due to a number of factors such as increase Identity Theft and mass media marketing campaigns there are very few who are not aware of the term Credit Score. The goal of this article is to add understanding on the personal to the recognition of that term. A Credit Score is a number between 300 and 1200 based on a statistical analysis of an individual's credit activity. It is used to represent the credit worthiness of an individual. How likely that the individual will pay his or her debts. A credit score is based on their credit report information which is typically sourced from credit bureaus and credit reference agencies, typically from the three major credit bureaus. Lending institutions, such as banks, finance companies, mortgage lenders, and credit card companies, use an individual's Credit Score to evaluate the potential risk posed by lending money to that individual. Lenders use Credit Scores to determine who qualifies for a loan, at what interest rate the loan is issued, and what credit limits are determined. The use of credit scoring prior to granting credit is a trusted system throughout the industry. Credit scoring is not limited to banks, however. Organizations, such as mobile phone companies and government departments employ the same techniques. While there are many others, such as NextGen, The most widely known score in Australia is Veda, which is most widely used in the mortgage industry. Veda, is company that provides the most well-known and most widely used credit scoring system in Australia. The Veda score is calculated by applying statistical methods, to information in one's credit file and is primarily used in the consumer banking and credit industry. Veda scores show how likely it is that a borrower will default. No public information is available to determine what the scores mean in terms of statistics, is used to indicate likelihood of bankruptcy. As stated, banks and other lending institutions use Credit Scores as factors in their lending decisions. Whether credit is denied or approved, what interest is charged, what income level and asset verification is required is all based on an individual's credit score.

Credit repair Requires credit Knowledge

1. Employment Did you know that you would be illegible for certain careers if you have bad credit? Something as small as a $300 telco or energy default could prevent you from following your dream career path. Certain careers in finance or insurance necessitate a clean credit report. In some cases if you had bad credit, and you wanted to become an accredited insurance or finance broker, you would have to look at waiting for your credit to clear before being able to go ahead with your career in these industries. 2. Finance Looking to buy a home? Need a new car for a growing family? Simply want to consolidate all your debts into one easy monthly repayment? Many of the best interest rate loans will be out of your reach if you have bad credit. If you have a default or court action, you could be paying more than double the standard rates for finance. For example, Anna wanted to buy a new apartment in Parramatta for $575,000. She had a 10% deposit and a great job that she had been at for more than 2 years. Her bank had conditionally approved her loan, but when the loan went to the mortgage insurer for approval she was suddenly rejected for the loan due to a $450 paid phone default that she knew nothing about. Unfortunately the bank had to decline her loan and advised her that she would need to save another 10% deposit before they could approve the finance, leaving her 2 years away from being able to enter the property market. Luckily, Anna came to us with her dilemma and we removed the default and she was able to apply to a different bank for the loan for which she was approved. A default or court action can seriously impede you in obtaining finance and can affect you for many years. 3. Lifestyle and renting ability Bad credit can also mean you can get knocked back for a rental property. Even if your income is above average, a bad credit score could mean that the real estate agent picks someone else’s application over yours. Wanted to rent that new home with a pool for the kids over summer? Could be an impossible dream with a bad credit rating. Overall, 1 in 3 Australians have bad credit. We can help you fix this and prevent the above scenarios from affecting you and your loved ones. Our dedicated and professional team is there ready to take your calls, and we promise you that we will offer you no win no fee credit repair where we can. Contact Mr Broker Today to help you....