The Credit Repair Industry - What To Look For in a Repairer

The goal of Australia’s credit repair industry is to assist consumers in improving their credit scores and removing inaccuracies from their credit reports. These issues, which might include errors, inconsistencies, or negative listings, could hinder someone’s ability to receive credit. Businesses that specialise in credit repair help consumers find and challenge errors on their credit reports, settle debt, and generally improve their credit standing. These services are particularly beneficial to anybody trying to get loans, mortgages, or other forms of credit, as having a clean credit history is essential for financial success. However, it’s crucial for customers to exercise caution when selecting a credit repair business and to make sure they are respectable and in compliance with every relevant regulation, like industry leader Clear Credit Solutions.

How Do Credit Repair Companies Work?

Most credit repair companies such as Clear Credit Solutions, Credit Repair Australia, Credit Fix Solutions and Clean Credit Australia will follow a similar process which can be seen across the whole credit repair industry.

This process involves:

Obtaining a copy of your credit report: A credit repair company can obtain a copy of your credit file, or alternatively, the consumer can get a free copy of their credit report from Equifax here: www.mycreditfile.com.au
Revision of your credit report: Credit repair companies will have to review and assess all of the information on your credit file to make sure that there is no inaccurate and/or misleading marking on your report that would damage your credit score.
Contest inaccurate/misleading information: If it is discovered by the credit repair company that your credit report contains inaccurate information, they will dispute the information with the relevant credit bureaus. Such as Equifax, Illion and Experian
Conduct negotiations with the creditors: If necessary, the credit repair companies will negotiate the remaining debt on your behalf, aiming to settle the debt for less than the amount that is owed.
Provide advice: The final step for credit repair companies once they have successfully removed the markings on your name, they will be able to provide advice on how to manage your credit in the future so that you do not end up in the same position.

Is the need for credit repair increasing?

Across the credit repair industry, it is being reported that credit repair companies are seeing more impaired and defaulted clients than usual.

Australia’s current economic climate is in a state of flux. Although the economy is still growing, unemployment and low wages are increasing and in combination with inflation and high interest rates, this puts an immense amount of pressure on lower and middle-class household budgets.

Inflation is at a 20-year high and does not seem to be coming down anytime soon. In the 12 months up to March 2023 alone, Australia’s CPI (Consumer Price Index) rose 7.0%, with notable rises across housing, gas and electricity, health and medical services, food, education fees, insurance and other financial services.

The cost of living crisis is having a tremendous impact on millions of Australians. Making it extremely hard for people to afford basic necessities and also save for their future, with many Australias forced to choose between food and housing. This has unfortunately led to Australians being forced to take out loans that they cannot afford or racking up debt on credit cards without being able to pay them back, which will leave a lasting impact on their credit report and score, meaning that more Australians are seeking the services of the credit repair industry.

Although the government is taking some steps to address the issue, such as providing tax breaks and subsidies for low-income households. However, more needs to be done to help Australians cope with the rising cost of living.

Therefore, when it comes to maintaining and improving your credit report and, consequently, the road towards your financial goals, working with a reputable credit repair company can make all the difference. To find out what makes us different click here.

How do I know which company to choose?

The credit repair industry can be confusing with all of the different companies, it can be tough to know who to choose. Here are a few tips on how to choose the right repairer:

Double-check the legitimacy of the company: Make sure that the company has all of the correct credentials. Such as making sure that the company has a credit license and is registered with ASIC.
Read customer reviews: Read online reviews to see how other customers found their service. You should also pay attention to how the company responds to their negative reviews. To see why Clear Credit Solutions was voted ‘Best Credit Repairer’ by ProductReview for 5 years in a row click here.
Get a free consolation: Most credit repair companies offer consultations so that you can learn more about their services and see if they are a good fit for you.
Ask your finance broker: It is always worth an ask to your finance broker to see if they know any industry professionals that they would recommend.
Only use a credit repair company that offers you a refund guarantee. Otherwise, if the credit repair company is unsuccessful, you will be out of pocket and you will still have bad credit.

How do I maintain my credit report?

Here are a few things that you can do to make sure that you maintain and improve your credit score, from the credit repair industry:

Avoid making too many enquiries for finance: You are only allowed 3 enquiries for finance a year, any more than this will damage your credit score.
Avoid opening too many credit accounts: If you have too many accounts open and available credit lines it can make you look like a potential liability to the next lender.
Pay all of your bills on time: The best way to build and maintain your credit score is to make sure all of your bills are paid on time, otherwise, you might be marked with a late payment, which will damage your score.
Check your credit report regularly: Checking your credit report regularly can ensure that no incorrect information is put onto your credit file. Consumers are entitled to a free credit report every 90 days from the credit reporting bureaus

By following these tips, you can improve your credit score and improve your chances of getting approved for all types of finance.

Clear Credit Solutions empowers you to take control of your credit repair journey. By following these credit repair steps and partnering with our expert team, you can enhance your chances of securing affordable loans and credit cards in the future. Remember, a clean credit history is the foundation for long-term financial success. Trust Clear Credit Solutions to help you pave the way to a brighter financial future.

Contact Us

At Clear Credit Solutions, we are the credit repair experts and can help when it comes to negative listings on a credit file.

Get in contact with our friendly staff for a free credit repair assessment today. No admin or investigation fees, no charge per default and a full refund guarantee so there is no risk! You can either call 1300 789 783 or fill in our enquiry and we will call you today.