If you haven’t paid your bills, or if you’ve had your power cut off, your car repossessed or skipped payments, exceeded credit card limits or defaulted, you could be refused a loan or be charged a higher interest rate by most banks and lenders.
Credit files contain records of overdue payments of 60 days or more from when you have been sent a letter notifying you of the default. They also include ‘clear out’ listings – when the credit provider has unsuccessfully tried to contact you in writing and has reported you as a missing debtor.
Bad Credit Rating
Having a bad credit file can be costly in the long term. A bad credit history will usually mean that traditional lenders see you as a credit risk and therefore, it will be more difficult to obtain finance. However, the Australian Lending Centre can provide support to those seeking bad credit loans and find the most competitive interest rate with the best terms of repayment available.
Clear up any bad credit disputes
If you believe that a creditor has unfairly listed an overdue account on your credit file, you should contact them and ask for an explanation and for the incorrect information to be corrected.
Repercussions of a bad credit file
If you have defaults or marks on your credit file it can affect a lot of your financial options, such as;
- Credit and loan applications may not be approved
- Difficulty getting approved for an apartment
- You may need to pay security deposits on utilities
- Creditors and lenders may only offer you credit on a higher interest rate
- You may struggle to get a mobile phone contract
- Your insurance premiums may be higher
- If you have overdue bills you may have to deal with calls from debt collectors
- You may find it difficult to start your own business
- Difficulty purchasing a car
If you are at a point where it has become too hard to manage your debts and make your repayments, speak to Australian Lending Centre as we may be able to assist you with debt consolidation.