Can I Get Defaults Removed From My Credit History?
Whether you’re fully aware of the impact of defaults on your credit history or have only just found out about defaults giving you a bad credit score, it can be daunting to confront.
You may be wondering how you can improve your situation, whether you can raise your credit score, and most importantly, whether you have the chance to get defaults removed from your credit history.
We have years of experience helping people with bad credit get defaults removed, so speak to us today to find out how we may be able to help you.
What is credit history?
Your credit history directly affects your credit score—which is what lenders will look at when deciding whether or not to approve you for a loan.
Your credit history is collected from the very first credit application you make. It should be seen as a record of your ability to repay debts and demonstrates how responsible you are in your repayments.
Some of the things included in your credit history are:
- The amount and type of credit accounts you hold
- The length of time each credit account has been active for
- Amounts owed across your accounts
- Amount of available credit that you have used
- Amount of recent credit inquiries and applications
- Whether or not your bills are paid on time
If you have any major events such as bankruptcies in your financial history, these will also be on your credit history. We can help get started with a free credit check to you know where you stand.
How is credit history collected?
You may be wondering how one company can find out so much about you and where your credit history has come from. It’s a good question to ask and it’s interesting to know how your credit history is collected.
There are credit reporting agencies who will collect the information that comprises your credit history. They will be contacted by a lender who will request to see your credit report if you have made an application to borrow from them.
Can you get defaults removed?
Firstly, it’s good to get a copy of your credit report (which details your credit history) to ensure that the information it contains is correct. If there are genuine errors and incorrect defaults listed on the report, you can ask for these to be removed.
Generally, it can be difficult to remove defaults from your credit history, however, there are certain circumstances and it’s worth talking to us if you need help. We have years of experience working with people with bad credit.
Circumstances when you may be able to get defaults removed from your credit history include:
- When the default listed has become statute barred (this means that it is no longer legally enforceable due to the prescribed period of limitation having lapsed)
- When there is a default listed but you have now entered into a new arrangement with the credit provider
- When the default listed was the result of an unavoidable error—as well as the errors mentioned above, this can include circumstances such as a natural disaster.
How to get defaults removed from your credit history
The best thing to do is to get in touch with the company which has created your credit report. To initiate a dispute, you are generally directed to their Resolution Centre who will be able to give you more information about whether you are able to get the defaults removed from your credit history.
What to do if you can’t get your defaults removed
If you can’t get defaults removed from your credit history, you’ll need to work with and around them.
Try to consider the remainder of your credit history—if this is strong you may be able to use it to show lenders that you are still a responsible borrower. There are many things you can do to improve and raise your credit score and it’s always good to have documents including:
- Proof of residency
- Proof of employment
- Proof of address
Approaching companies who work with people with bad credit will help you to get in touch with loan providers who will be appropriate for your needs and who will be understanding of your situation.
How to borrow if you have defaults
Don’t panic—there are ways to borrow money even if you have defaults. Defaults do not have to mean that you can never make a successful credit application, and there are many lenders out there who work with people with bad credit.
If you need help with credit because of defaults or a bad credit history, speak to us today to find out what bad credit loan options are that are available to you. We have years of experience helping people with bad credit history to find the right loans for them.
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