Credit History Check For Defaults
Credit Defaults can be brought about by a number of reasons:
- Loss of Income
- DV Relationships where one person controls the finance
- Loss of Employment
- Illness
- Caring for Family, unable to work
- Incarceration, or a lengthy time away from family for other reasons (Visa issues)
- Other unique situations
- Forgot to Pay – very common
Some debts are just plain silly and annoying at how easy it was to happen. Like the time you moved house and told your electricity company you were moving, and they connected their service to your new house ….. but the electricity sent the bill to the old house. Not everyone redirects their mail but this is a number one reason why many people end up with a credit fault that they were not aware of.
You were sent the bill but you did not receive it.
It is up to you to let your creditors know with updated information.
With the busy lifestyles we do lead and many of the companies we deal with using virtual correspondence such as emails – It can be easy to not remember to think about receiving a bill in the mail.
A Default On Your Credit File Can Cause Problems For Lending.
What do you do about bad credit history?
- Pay off the default over time
- Pay a lump sum of the default but negotiate a very generous discount in your favour
- Negotiate to have the default removed from your file BEFORE you pay the debt. Make sure you get this in writing
- Discuss your loan situation with us – we will be able to help with which debt needs to be paid and which debt doesn’t
- Remember that some debts may be that old that they can’t be collected
- Financial Counsellors – worth their weight in gold, and can help you work through your situation
- Consider having your Credit File cleaned up, subject to the reasons behind the default in the first place
If you need help to review your situation or would like to be referred to a Professional to assist you further (eg Financial Counsellor), please contact us and we can help you further.