“Negative listings that are correct cannot be removed, however incorrect ones can,” Cole said.
“It is a complex, time-consuming process. You might have to . the credit reporting agencies [Equifax, Experian and Illion] as well as credit providers such as banks, telcos, and credit card providers.”
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Cole said you had to know which people to speak to in these organisations and provide them the right .rmation.
“In other words, you have to know which bureaucratic buttons to push,” he said.
Cole said he worked with hundreds of mortgage brokers across Australia and he knew the frustration a broker experienced when they watched a deal collapse because the lender found a black mark on the client’s credit report.
“In those situations, it makes sense for the broker to refer their client to a reputable credit repair agency to see if the problem can be solved,” Cole said.
“If the agency finds the client’s credit report contains incorrect negative listings – which is a lot more common than you might realise – the credit repair agency can take steps to have those listings removed.
“That should then improve the client’s credit score and hopefully give the broker a chance to bring the deal back to life with either with the same or different lender.”
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Cole said brokers wanted to work with consumers with high credit scores as it meant they were loan-worthy with a strong track record of managing loans, bills and other forms of credit.
“Lenders want to do business with those kinds of people because they are reliable,” he said.
“As a result, lenders are more likely to approve their loan applications, charge them lower interest rates and offer them special deals. Conversely, a client with a low credit score is seen as being less reliable, so lenders are more likely to reject their loan applications and charge them higher interest rates and less likely to offer them special deals.”
Cole has three pieces of advice for brokers who consider working with a credit repair agency.
“Firstly, do it, as when you encounter clients with credit problems they will be grateful if you can help solve their problem by referring them to a reputable credit repair agency,” he said.
“Secondly, make sure the credit repair agency’s pricing is transparent otherwise your clients might get burnt – only work with agencies that offer a no-win, no-fee guarantee.
“Thirdly, do your due diligence as t. are many good credit repair agencies, however t. are bad ones out t.. Make sure the company you select has lots of experience with mortgage brokers, has received positive client testimonials and has won independent awards.”