Are credit file defaults standing in your way? Tips for improving your credit file!
How long can credit defaults stay on your credit file?
How long credit defaults stay on your credit file really depends on the type of infringement that it is.
A serious credit infringement is when a consumer has an overdue debt to a credit provider and cannot be contacted at their current address and has not left a forwarding address.
Serious credit infringements remain on a credit file for seven years from the date they were listed.
If you pay your debt, the length of time that it will remain on your file will revert to five years, they will not be removed just because you have paid your debt. Once your five years is up they will then be removed.
Other information that stay’s on your credit file for a standard amount of time include:
2 years – Repayment history information
5 years – Any credit enquiry
– Overdue accounts listed as payment defaults
– Overdue accounts listed as clearouts
– Writs and Summons
– Court judgments
How do I get these infringements off my credit file?
It is possible to have these entries removed if you can prove that they were listed in error or that the creditor did not make reasonable effort to contact you, they may be forced to remove the entry.
Who do I contact to get my credit file fixed?
There are plenty of credit repair companies you can contact who will help you fix your credit report.
However it is recommended that you get a written quote before you give the go ahead for the company to start proceedings on your behalf to ensure it is within your budget and worth your while to go ahead with the searches.
How do I get a copy of my credit file?
There are three reporting agency’s with whom you can get a free credit report from, however it will probably take a week or even up to two weeks to arrive.
If you want it instantly or within a day you will have to pay a fee for express delivery.
There is a possibility you may have credit file history with one or all of the credit reporting companies, depending on who the owner of the debt reported the infringement to.
There are three different credit reporting companies:
- Equifax (formerly Veda)
- Dun & Bradstreet
How do I get infringements off my credit file?
Although it is not impossible to get infringements off your credit file it is very difficult.
You will have to prove that the company has listed the infringement in error or that the creditor did not make reasonable efforts to contact you.
If you can prove this then they may be forced to remove the entry.
However you may need to enlist the help of a credit repair agency to help point you in the right direction which could be costly. So ensure you ask for a written quote before you enter into any negotiations.
Although if it improves your credit rating to help get the best deal on a mortgage or personal loan it may be worth paying the credit repair agency to work on your behalf.
What is the difference between my credit file and credit score?
Your credit score is a numerical value calculated from information in your credit file that is used by lenders to assess your credit risk.
Where-as your credit file is a summary of your financial reliability or history of paying your debts and bills.
Finally, the most foolproof way to improve your credit file rating and avoid defaults being recorded on your file is to ensure you pay your bills on time, keep your switching of lenders to a minimum, always notify companies of your address changes and only apply for credit when you need it. This will all help you to get the best deal you can on a home loan or personal loan.