Does anyone know what is involved in getting things removed from your credit file?
I was self employed for 4 years and this caused me to make several applications for credit -anything from vehicles to trade accounts, computers and mobile phones. During this, of course I was financing property.
My credit file is umm, long, to say the least -I now have a copy of this. Its strange that some banks think this is all personal credit and did not understand this was related to the business (sole trader with 4 staff mind you…)
SO, im thinking that if I can contact the relevant people who have ‘hit’ my credit file, maybe they can remove the information so that in 6 months or so when Im looking at my next deal, this wont be an issue.
What do you think?
Luke [cap]
Oh and I have been on the Baycorp website, cant find anything on there about it… Then again I am being quick cause Im at work! haha
[cap]
Hi Luke,
You may have some difficulty removing hits on your CRA file, unless you can prove the information on your file is incorrect,Unfortunately, information is held on your CRA file for Five years,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
I thought it was seven years?
I was just thinking that if I did not proceed with the finance or if the finance in question had been paid out that you could remove it.
Yet another learning curve…
Luke [cap]
Hi Luke,
Applications for Credit are held for Five Years.Bankrupt and defaults are held for Seven Years,
And Directors information is held for 10 yearsRegards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi Devil,
My understanding was that if you had a registered ABN your credit file comes as two parts, one yours and one the business entity, perhaps because you were sole trader it comes under your name only. (Steven?) Maybe if you had/have an ABN those enquiries should be moved onto that business.
In general credit file enquiries are not too bad, they are looking for defaults and the like. I’d take a pre-emptive strike with any applications to explain what the enquiries where for, it shows you are knowledgeable and perhaps less shifty.
When it comes down to it humans process the applications and sometimes it’s a judgement call, not all hard ball policies.
Stevens right though, your going to have to wait 5 years for each enquiry to drop off. Unless of course anything on there is incorrect, contacting the companies you made enquiries with won’t help, as it is their duty to disclose the information to Baycorp.
Call Baycorp on 9464 6000, maybe they can help you?
Good Luck
Liz
Mortgage Lender
Yeah, nothing dodgy on there! No defaults, late payments or anything!
Sole Trader, not split just because I had an ABN unfortunately…
Are you sure they ARE humans in there? haha[rolleyesanim]
Unfortunately we explained the hits to the mortgage insurers and it did not help… [glum] 2 banks approved my loans but the mortgage insurers said no.
I suppose the older the hits the less likely the banks[skull] / MI Companies[stitch] will get upset??
Luke [cap]
Luke,
This situation highlights the negative impact of applying for credit with multiple lenders,This problem can be avoided by enlisting a good Mortgage Broker, who will assess your situation with their lending panel before submitting the application,
Liz seems to be quite knowledgeable, and she is in your State,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
if you know there has been a lot of enquiry’s on your CRA, I would suggest you down loan your file and write an explanation against each hit.
Like just shopping around for a car went to 3 car yars , bought privatley
7 hits for finance was shopping around for best rate and best lender.
etc at least have an explanation that way your broker can cover you by explaining to the current lender that you were not denighed a loan
you where only looking. etc[buz2]
I have had a few of these and a letter of explanation before the lenders check the CRA is helpful, that way they already know whats on there and have an explanation in front of them.
hope that helps.[guilty]Luke,
My information from my bank is that they don’t care how many credit applications you’ve made- they are only interested in defaults. Have you a lot of credit cards? If so, reduce your limit amounts. I am not sure why any bank would care how much credit you’ve applied for- surely they would think you are entrepeneurial if you have bought many cars, computers etc- AND paid them back. Are you sure there’s no black marks against you?
By the way, Luke- if you are really highly geared, and need to borrow the 3,800 on a personal loan and you think your credit record won’t allow you to do so… is getting this IP right now a good idea?
kay henry
kay henry
I guess this makes a strong case for using a company, rather than being a sole trader.
Rgds.
Lucifer_auOk
Going from the last post back..
Lucifer_au – It is not always in ones best interest to set up a company, a lot of the time being a sole trader is best for the individual, as it was in my case. But, good point.
kay henry – I have only one credit card with a $1000 limit. Ive never had any late payments on anything, and definately have no black marks against my file. I dont have any personal debt except my car. (IP’s excluded of course) The IP’s are not that highly geared that I cant borrow another $3800 somewhere else. And its ALWAYS a good time to buy another IP in my eyes [biggrin] hehe
I think by the sounds of it, everyone agrees that once you have the file, thats it for 5 years. Fair enough. Im happy with that. I do have a copy of the CRA and is up to date, I will go through each and every one and make a written explanation now for future reference. At least if I show the banks this upfron there is no surprises for them and they will see that I am giving them as much info as possible and being open about my credit history.
Funny nobody teaches you this stuff in school. Valuable learning. People are going and signing up interest free, credit cards, vehicles every day of their lives and not many understand that this can and will affect them down the track if they want to do something productive with their money.
Robert Kiyosaki got it right. I never liked school anyways!
Thanks for your opinions and comments
Luke [cap]
Dev,
Can I ask which two banks said no? Because if they use the same mortgage insurer it would be no surpise they said no the second time.
And no I’m definately not sure they are humans in there… because banks don’t like to let us brokers talk to them directly[hmmm]… sometimes I think they have one of those monkey labs where they just press buttons on a computer, hence the cold heartless responses we get – like yours.
I too am exasperated to hear that even though your file is faultless your still having trouble.
A personal loan doesn’t need to go to MI so you should be right… let us all know how you go ey?[worried]
Liz
Mortgage Lender
hi there.
Rob, I know of a team of solicitors that sepcialising in removing entries from CRAA files – legally of course. They use some small mistake or technicality of the lister and threaten to sue them if they do not remove the entry. it seems to work with judgements and defaults.Liz, I had an application of mine initially reject by westpac based soley on the length of my file (not trying to boast here!). But they passed it when explained.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry,
That is a bit slack of Westpac don’t you think?
How much do these solicitors charge for such a service? They must do it on the grounds that due notice was not given.. something like that??
It must be legal if they are solicitors.
Want to share?
Liz
Mortgage Lender
Liz, Rob
I am willing to pass on their details, but am unable to find their card at present. Will ask around, please email me if I forget to get back to you.
From memory, the solicitor is located in Melbourne and they charge around $1000 to remove defaults etc. This is not so high when you consider the potential reduction in interest rates acheived when the clients are able to get into nromal loans.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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