What's On My Credit Report That Should Make Me Worried?

Is shopping around for credit going to hurt my credit report? –

Every time you apply for credit, your credit report is updated. Any inquiry can be recorded on your credit report whenever you apply for credit and a lender obtains a copy of your report. This includes any loans, mortgages, or utilities applications you may make. Credit providers might have a negative perception of a large number of queries in a short period of time, which can harm your chances of obtaining credit.

However, just one of the factors a lender may take into account while evaluating your credit application is the number of inquiries recorded on your credit report. Lenders consider a variety of information including your application form, as well as your credit report and their own lending criteria to assess you.

Is it possible for me to have a negative impact on my credit file if I pay my phone or electricity bill late? –

It is possible. When a debt is more than 60 days overdue, it can be reported on your consumer credit report if it is at least $150 in arrears. Please keep in mind that unless you are 60 days or more in arrears, information about whether or not you have paid your account on time cannot be listed by a telco or utility provider.

A default must be listed with a credit reporting body before the credit provider may do so. The creditor must have given a written notice seeking payment of the overdue debt and another notification stating that the default might be submitted with a credit reporting organization.

Once you’ve paid the past due invoice, the credit provider is required to change your credit report entry to “paid” as quickly as possible.

If the overdue debt is considered a serious credit violation, where you have left or appear to have left your prior known address, the creditor must first have published a default and had no contact with you for the previous six months.

The legislation does not apply to commercial defaults and clearouts, which means credit providers are not required to adhere to consumer default and serious credit infringement provisions.

Will failing to pay the minimum balance on my credit card each month have an effect on my credit report? –

Yes, it is possible. Starting March 2014, your credit report may contain information on whether you make credit card and loan repayments on time. Although one late payment may not have a significant impact on your creditworthiness, a number of late payments might be an indication that you are in financial difficulty and could negatively affect your credit score.

What should you do if you are unable to pay your bills or repayments on time? –

If you can’t keep up with your payments, it’s critical that you act fast. First and foremost, talk to your credit providers and inquire whether they have any methods in place to assist borrowers facing financial hardship. You may avoid having an outstanding debt shown on your credit report if you contact them before you default. There are a number of free services provided by community organizations, community legal centers, and some government agencies that might be of assistance if you require financial advice or legal counseling.

What happens if I’m turned down for credit? Will it appear on my credit report? –

If you’ve been turned down for credit by one credit provider and keep making numerous applications, your credit report will be marred with negative inquiries. From March 12, 2014, information regarding when an account is opened and closed can be kept on your credit report. This, along with your repayment history, may help lenders better understand your financial obligations in considering whether or not to approve you for a new credit card.

If you’ve been turned down for credit, you have a legal right to obtain your consumer credit report within 90 days of being denied.

At Clear Credit Solutions, we want to help you understand the difference between your credit score and credit report. Your credit report contains all of the detailed information about your credit history including any negative marks such as defaults or missed payments. We can help remove these negative listings from your file so that you have a clean slate and improve your chances of being approved for finance in the future. If you would like more information about our service or would like to get started on credit repair, please don’t hesitate to contact us today.