How do You Get a Credit Default?
To start off, you need to understand exactly what a credit default is. This is something that could come from the non-payment of a bill, credit contract, or other sources. If you happen to end up 60 days overdue on any payment that you owe on a credit obligation or a contract, the provider could decide to put out a default notice through Veda Advantage.
When this happens, your credit report will be marked as having non-payment on a bill. If you do pay it, or go into some sort of arrangement with the creditor, they will be required to contact Veda Advantage with any updates, or if the bill gets paid.
How does it Affect a Credit Rating?
A credit default could hinder your ability to file credit applications to get loans in the future, so it is always best to remain up to date with credit commitments. If there is some sort of issue with paying a bill, you should think about talking with your credit provider so that you can make arrangements to avoid the payment that is overdue from making it onto your credit file.
You have the ability to obtain a copy of the credit file under your name through www.mycreditfile.com/au. You will find a free version that will take a few weeks to be sent out to you, along with an express version that can be emailed to you or faxed out within a few hours. Express is going to cost you about $57. Some of the things you may find on your credit file include:
- Any inquiries on your credit
- Court judgements, defaults or any applicable bankruptcies
- Company directorships
A listing will usually be on your credit file for a total of five years, however it can vary. If you have a bankruptcy, it may be held for up to seven years on the credit file.
Can a Credit Report be Cleaned?
There are several companies today who offer removal of credit defaults from your file. Some will be very successful in getting rid of these listings and defaults for you, it just depends on what it was for, whether or not it has been paid, and so on. When you want to gather information on these companies, all you have to do is search for credit repair and make a selection from the list that comes back.
After the Global Financial Crisis, lenders and banks have been tougher on credit defaults. This will not mean that you cannot get a home loan, as there are some lenders or banks that have tolerances for smaller credit defaults. However, if you have many defaults or larger ones, there can still be options with home loans for the credit impaired. You may just find that they will be a bit expensive.