It’s important to make sure your credit file is in good health. Your credit file is what any financial institutions looks at to determine if they will give you a loan, credit card, mortgage or any other kind of credit. Your credit file score is used to determine how much interest you will pay for a certain product, for example, the worse your credit score the higher interest rate you will pay.

The best thing you can do to repair your credit score is to get a free copy of your credit file and review it. You can request a copy once a year, free of charge. One of the most popular company’s out there is VEDA, another company is Dunn & Bradstreet, both company’s may have different details on your credit file so make sure to check with both companies.

Once you have a copy of your credit file, make sure to look through it to see if there are any errors recorded on your file. These are surprisingly common, and getting these errors removed are one of the easiest way to undertake credit repair.

Step 1

The first thing to do is check your personal details – name, DOB, address, license number etc.

Step 2

Check the listings: Is there something listed that should have been finalized or incorrect (ie a default listed for a payment which is overdue (60 days) that you know you paid on time, or that the amount is incorrect)? Is there a loan or credit card listed that you know nothing about (Identity theft)?

If you think there is something on your credit file that is incorrect, you are entitled to have it corrected for free. If it is a simple matter, you can contact your creditor to discuss. If they agree, they will contact the credit agency and correct the error. If you aren’t happy with the outcome, you can contact the Ombudsman service, which is a free service.

Your other option is to contact a credit repair agency. They can assist you if your situation is complex; they can help streamline the process if you are unsure what to do, and they can save you time. They will act on your behalf for a fee. However you need to be aware the results are not guaranteed and the costs can be very high, approximately $1000, so if you decide to spend the money, you must be confident that the listing is an error. Don’t get yourself into more financial stress over credit repair.

Remember when making this decision, default listings and other historical information can’t be removed from your credit file unless they are incorrect. There is a mandatory period that they must stay on your file, for the reference of creditors when you apply for credit. If you are unhappy about a listing, but it is legitimate, no one can get this removed. Credit repair is possible, but ensure you do it right.

For further information on your credit file and other debt related advice head to the Debt Help Advice Centre, you will find

Kyra Pritchard
Operations Manager at Debt Cutter

Kyra has a passion for personal financial management and is a debt management expert.  She enjoys helping Australian’s take control of their finances, get out of debt and begin enjoying life again.   Kyra is a registered Debt Agreement Administrator, and mortgage broker here at Debt Cutter. Specialising in finding mortgage & refinancing solutions for challenging situations.