I was reading this interesting article on how some two million Aussies are unable to buy a home because their names have ended up on a credit black list, but it assured me that this was changing thanks to a new service offered by Credit Reboot because it can offer their clients a new app that helps repair their credit file.
It was talking about how the Credit Reboot app, created by us – a team of ex-debt collectors – is a DIY approach taking potential home buyers through a series of questions to identify where the faults lie in their credit file, the app then runs an automated search through the complex Credit Reporting Code to identify where the credit provider has made errors in marking the consumers the credit file. Documents are then electronically prepared and sent off to credit providers to repair their credit file.
Broker Network Manager ******, said the app allows our clients to navigate the labyrinth of Credit Reporting Code and come out with a clean file.
“We find many first home buyers have poor credit scores because of bad debts acquired after school or uni,” said Mr Broker Manager, “People are often unaware their file contains a black mark and that stays on the file for more than 5 years. Once we discovered a credit default we have to make that difficult phone call, tell them their finance application is declined and leave it with them to sort out the problem. When they attempt to resolve the problem they are confronted with a maze of regulations, decide it’s all too hard, end up turning to payday loans and renting for another 5 years.”
I was also reading into a recent survey that showed younger adults are more affected by credit problems and only discover the extent of the issue once they attempt to buy their first home.
A credit default which originated from an unpaid $150 mobile phone account can stop you from obtaining finance from any main stream lender, exposing them to alternative lenders with expensive application fees and higher interest rates.
“We have been reluctant to recommend private credit repair agencies as they can charge thousands to repair one default. ASIC recently slammed them for their unregulated charging practices. We have recommended Church and government funded financial counselors, which is a free service, but these people do important work helping people through very difficult financial hardship; our client showing up with Telco default of a few hundred dollars is consuming limited resources and can take time,” Mr Broker Manager explained, “Through Credit Reboot our clients are using the same tools as the professional counselors but this is DIY application which makes more accessible for our clients in terms of cost, time and resources. Credit Reboot fills an important gap in consumer services, between private agency financial counseling and charity based financial hardship services.”
Broker Network Manager ****** said the app can offer a solution for first home buyer stuck because of a poor credit score by addressing the following:
- DIY credit repair: Guides consumer through the maze of regulations to help identify errors on their credit file made by credit providers.
- Helps consumers: Communicates where the errors are on their file using the same compliance jargon used by credit providers.
- Avoiding future problems: Provides extensive tips and hints to help avoid future debt problems.
- Costs: Typically the process takes one month to fix black credit cards marks and costs $199, however depending on the condition of the file and access to documents, this process can take a few more months – with a monthly subscription fee of $49.