Finance companies rely heavily on computers to help process loan applications these days. There are still human beings inside finance companies called credit officers that often make the final decision. However, your loan won’t even get to the credit officer if you do not tick a few boxes. One key box is based on your personal and business credit file. If your credit score is too low or you have defaults listed as unpaid, the banks system will automatically decline your application.
But don’t despair all is not lost…. There are actions you can take when there are defaults listed on your file especially if they are paid or you think they were unfairly listed. Even if it doesn’t help your immediate need for finance, you will at some time in the future likely require some more finance so it is in your best interest to get it sorted. Even though you would probably prefer to go to the dentist.
Below is some steps to take if your loan is declined due to your credit score or defaults.
- Source your credit score
The first step is to source a copy of your credit file by visiting www.mycreditfile.com.au. In most cases, finance companies won’t send you a copy of your credit file or even tell you what the issues are. You can get a free copy of your personal credit file if you are prepared to wait 10 days. If you don’t want to wait 10 days or you need a business check done, you will need to pay for it.
- Read your credit file in detail
When you get the credit file, check all of the details are correct like name, address, date of birth. Make sure you made all of the enquiries listed on the file and you were not the victim of identity theft. If you have not paid the defaults it will be worth you paying the defaults if you can.
- Get incorrect information corrected
If there are any unpaid defaults on there that you have paid, call up the companies who listed the default and ask them to show it as paid. They need to fix incorrect listings by law.
- Engage the services of a credit repair agency
Yes you could fight the case yourself but you do run the risk of stuffing it up. If you take your case to the Ombudsman you only get one chance for them to hear your case. If you take it to the ombudsman and you fail you are only left with the option of taking the credit provider to court. In court you are unlikely to win due to the credit providers having far superior legal resources.
By using an expert credit repairer who understands the Ombudsman’s rules and processes, and the law and legislation that applies to your case you are much more likely to get the desired outcome.