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s WARNING: Do you really need a loan today?*

It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.


Check your options before you borrow:

  • For information about other options for managing bills and debts, call 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.
  • Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
  • If you are on government benefits, ask if you can receive an advance from Centrelink: www.humanservices.gov.au/advancepayments

The Australian Government’s MoneySmart website shows you how small amount loans work and suggests other options that may help you.

*This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009

Why can’t I get a loan? This is a question many people ask, usually when they have been knocked back for a loan.

Unfortunately many people are unaware of how their credit rating or bad credit can affect their borrowing power. Your credit rating can even be affected by who you previously borrowed or even enquired through!

Your credit score is what lenders use to decide whether lending to you is a safe risk and if you have had previous bad credit that may affect their chances of having their loan paid back.

SO WHAT IS YOUR CREDIT REPORT AND WHY CAN BAD CREDIT REPORTS AFFECT YOUR CREDIT RATING?

A credit report is a record of your credit history. It will give your current lender or potential lender a snapshot of your ability to repay a loan, as well as any serious infringements you have that are held on public record.

Your credit report also shows:

  • If you make timely repayments
  • How you repay your credit cards or if they are at their credit limit constantly.
  • If you have defaulted on payments previously.
  • If you have any serious credit infringements.

NOT SURE WHAT YOUR CREDIT REPORT SAYS ABOUT YOU?

There are three companies who hold credit reports on individuals. You may have entries with one or all three companies; it will depend on which company your debtor has listed your infringement with.

You should check for credit report infringements with all three companies to be on the safe side.

  • Equifax (formally Veda)
  • Dun and Bradstreet

You can get a free credit report from these companies if you don’t mind waiting for around 10 working days.

If you need your credit report sooner you can pay a fee to have your report sent through as soon as possible. You should visit their website’s and follow the directions on how to do this.

www.dnb.com.au

www.equifax.com.au

www.experian.com.au

bad credit loans

bad credit loans

THERE ARE ENTRY’S IN MY CREDIT REPORT THAT AREN’T MY DEBTS, WHAT SHOULD I DO?

There is a process you can go through to contest your credit report if you feel you have been a victim of fraud or that there are incorrect entry’s on your credit report.

The first thing you should do is speak to the company who has listed the infringement against you to try and resolve the situation and ask them to remove the infringement.

If this is not an option then you may need to contact a credit repair agency to help fix or repair your credit rating on your behalf.

You do need to be aware however that they do charge a fee for their services and you should ask them for a written quote before you agree to accept their services.

HOW DID INCORRECT ENTRY’S GET ON MY CREDIT FILE?

Incorrect entry’s can be found on your credit report through:

  • Similar or identical names
  • Incorrect information in legitimate entry’s
  • False information
  • Duplicate entries
  • Identity fraud or theft

Checking your credit rating on a regular basis is a really good idea. Not only does it help you to get a loan through your chosen lender for the best deal, but it also helps lower the possibility of fraud being used under your name because you are checking the entry’s all of the time.

Ensuring that your debt repayments and bills are made on time can help improve your credit rating.

Before going for a loan it is very important to know how your potential lender is gong to see you. If one lender rejects your application other potential lenders will be asking why the other lender said no.

A new feature to credit reporting is positive credit reporting. Credit reporting companies are now reporting on those who are paying their loans early or on time through their payment history.

This is a win for those customers out their listening to all the advice from their financial advisors on a healthy credit report!

Therefore to improve your chances of getting the best loan you should:

  • Pay your bills on time.
  • Do not switch your lenders too often.
  • Ensure you notify lenders when you change address.
  • Do not apply for credit unless you need it.

These will all help your chances of getting the loan you want.

In conclusion, if you are having trouble getting a loan there may be more than one reason that your application is not being successful so investigating the cause is the best plan of action!