How To Repair Your Credit
Whether it’s to pay off bills or simply to make ends meet, securing a loan has been the go-to fix for most people to meet their emergency cash needs. Sometimes though, paying off a high acceptance rate loan may need be as easy as getting one. There are reasons beyond your control that may affect your ability to pay, but what’s certain is a credit that is left unpaid may cause a default listing against your name.
This is why most individuals turn to a credit repair company to settle a default listing on their credit record once they have paid off a debt. It is important, however, to arm yourself with the right information about credit repair and if availing yourself of one can indeed remove a default listing against your name.
Know the law
The Australian law stipulates that once a debtor have paid off a debt, the lender is required to reflect this payment on the debtor’s credit record. This means the debtor’s credit file must be updated to show that he or she has already paid off the debt.
What most people don’t know is that even when they have settled a debt, the default or negative listing against the debtor doesn’t simply go away. The record of default payment remains in one’s credit file for about five years.
A bad credit record is the last thing you need when you’re seeking approval for, say another loan from direct lender. The default listing against your name will affect your ability to secure a bigger same day loan in the future (e.g., a home or car loan) and may even make it tougher for you to rent a home. It may also cause you to pay more for a lot of things, such as your car insurance.
This is the reason why there are credit repair companies out there that promise to help in removing default listings. Before you head off to one, it is a must to know if a credit repair company can indeed be trusted to settle your default listing without a hitch.
Key things to consider before hiring credit repair company
Whether they call themselves “credit repair experts”, “credit fixers”, or “debt solution specialists”, be wary when a credit repair company makes alleged claims that it can wipe your credit history clean in an instant. The truth is a default listing cannot be immediately wiped out even if you have paid off the debt. Such information must go through a stringent process that includes proving that you have indeed paid off the debt.
In addition, it is important to make a clear distinction between a “credit repair company” and a “credit reporting agency”. There are credit reporting agencies that can go as far as look into your credit file to help your default listing removed for free. A credit repair company, on the other hand, doesn’t offer its services for free.
Hiring a credit repair company may cost you at least $900 to get the job done. This fee covers, among others, getting in touch with your lender to talk about your credit situation and coaxing the lender to get your default listing removed by virtue of some personal excuse (e.g., unemployment). When worse comes to worst, your hired credit repair company may even resort to making some inexcusable threats when the lender doesn’t adhere to the request, like filing a complaint at the Credit Ombudsman Services, which you yourself can actually do for free.
Sure, such threats may get you what you want, since no lender would want to go through the hassle of having to shell out additional dollars as a penalty or being reported to the authorities. When you think long and hard though, you have just paid for a service that doesn’t operate professionally.
What you can actually do to settle your default listing
Keeping these things in mind, there are legitimate ways you can do yourself to get your default listing removed. First, get a copy of your credit report from Veda or Dun & Bradstreet to see if there are inaccuracies on your record. If inaccuracies are present, talk to your lender and work out some arrangements. Incidentally, if you have bad credit and need to borrow money, consider getting a no credit check loan. You can apply with Perfect Payday.
If your lender doesn’t cooperate, that’s the time you can file for complaint at the Credit Ombudsman Service. Remember that this service is free of charge to the public.
If you’re still taking into consideration the services of a credit repair company, why not do more research and decide if this is indeed the road you want to take? Read reviews and comments online about how credit repair companies are making false claims and deceiving the public about their so-called services that they offer for unreasonable prices. While you’re at it, research more about credit repair by visiting the Credit Ombudsman Service.
The choice is yours, but remember that it is better to be armed with the facts before letting go of your hard-earned money. Apply for payday loans with Perfect Payday if you need emergency funds.