You have been rejected for a loan and the grounds given were that you have a poor credit rating.

What does this mean?

As there is a mechanism to report missing payments or judgments against you on a centralized database, anyone giving you finance can check the database and see what your history is like.

A credit repair organization offers to check your record and remove any erroneous listing, but do they actually work?

If you have a debt owing then chances are the organization that listed you is unlikely to be willing to remove it, even if you pay in full. Equally, if there is a judgment against you, unless you can demonstrate that you were not a party to the proceedings, then it is difficult, if not impossible, to have these removed as they are part of the court records. Equally, if you are a director of a company that has had an insolvent event, you will be struggling to remove these as they are court and Government records.

We often get asked if we can assist in credit repair, we don’t and we can’t. We work closely with our solicitors where there are impending judgments or claims to find an outcome. Attempts to removing listings, however, are often fraught with difficulty.

Before engaging with one of these firms, it is important to actually know the service they offer and how successful they will be. If there are debts outstanding, then coming to an arrangement with your creditors may be a better outcome than attempting to have them removed on a technicality.

For business owners, if your credit rating is shot it may be an indicator of greater problems in your business and it is never too early (or late) to have a chat with us about your options, give us a call on 1300 023 782 or email team@cdrta.au