What are my Credit Repair options?
This is what Veda has to say about having a listing on your credit file.
As veda confirm that a credit provider has listed a default on your credit file you may be wondering if you, or a third party, can perform a credit repair.
Having a debt or bankruptcy, or other information such as a debt agreement or court writ, recorded on your credit report, may hamper your chances of being approved for a loan or line of credit.
For instance, you may apply for a business loan with a Brisbane bank, or attempt to set up a new electricity account with a Sydney provider. When the lender reviews your credit history, their decision to accept your application could be impacted if you have a payment default recorded on your credit file.
Please feel free to complete the form below and we will start the process to take the burden of your credit defaults from you and tailor a suitable solution.
You really have 6 options to consider
Stick your head in the sand and do nothing about your credit issues. This really sounds like an easy option but you will forever be in a battle to obtain finance. We do not recommend this option and if you are on our page, at least you are aware and we know you want to do something about your credit history, which is great.
Consider contacting your credit provider to negotiate paying off the debt. Your credit provider will either agree to your negotiated repayment, or not. The problem here is, you generally get into a negotiating match where you end up on a repayment plan you can't afford, and makes life even more difficult. Either that, or you don't stick to the repayment and cop even more fees and charges along with more harassment calls from debt collectors.
Debt consolidation where you can consolidate all your debts into one nice repayment sounds great, but it is not easy, almost impossible with credit issues on your Veda file, unless you either have equity in property (refinance and debt consolidation loan) or you go into a part 9 debt agreement, not recommended.
Part 9 debt agreement - You are basically going into a form of bankruptcy called part 9 of the bankruptcy act, you end up paying 30% in the dollar over 5 years (yes 5 years) and while under a part 9 debt agreement you will not get finance anywhere, and 5 years is a long time to wait.
Bankruptcy - Possibly the last step you want to take, that being said, it's a lot more common these day and does extinguish your debts, but also may mean you lose assets too. Also registered forever with ITSA so all lenders will know you have been previously bankrupt.
Informal Debt Agreement/ Debt Negotiation - This is where we step in and help you to either negotiate a lower repayment on current debts, consolidate all debts into one manageable repayment amount, or a combination of the two, along with ability to negotiate removal of any defaults that should not be on your credit file.
Having a third party look after your credit issues is overwhelmingly nice, so our clients say.
Whatever option you take, please call us on 1800223273 first and let's have a chat and just make sure you are taking the option best suited to your current circumstances.
More from Veda
The law in Australia states that once the debt has been paid, the lender must update the listing on your credit file as soon as is practicable. However, even after you have paid it off, a default payment will stay recorded on your credit file for five years. This forms part of your credit history.
It may be useful to be aware of identity-theft scams, as often the first time a person finds that their identity has been stolen is when they are rejected for a credit application, based on non-repayment of a loan they never knew had been taken out. You can take steps to help protect your identity, simple steps like installing anti-virus software, putting a lock on your mailbox, and shredding documents.