Loans
Australia

What is a Bad Credit History and Rating

Knowing exactly what is on your Credit File is the first step. How many defaults do you have? Are the defaults paid or unpaid? How much are the defaults for? Who are the defaults with?

My Credit File Report, is a business that gives you a copy of your credit file, your credit score, or rating, and a comprehensive report on your credit health, with tips and advice on what to do to fix your credit problems.

There are different types of Bad Credit, and different lenders will lend different amounts depending on the level of the history, and a persons current history. The different levels are:

• Minor defaults (telco or utility companies) under $500 paid.
• Minor defaults unpaid.
• Major defaults (Banks, Finance companies, Payday Lenders) over $1,000 paid.
• Major defaults unpaid
• More than 2 defaults unpaid

If you are earning an income, and have surplus money each week, that you can show in a savings account, you stand a good chance of getting a loan atleast a small one with minor defaults paid from a lender.

If you are earning money, showing a surplus, and have paid major defaults, you still have a chance of getting a loan, if you can explain the default, and the other aspects of the 6 C are strong.

If you have unpaid defaults, it is going to be much harder for you to get a lender to trust that you will pay them back, and you may still get a loan that is a secured personal loan, for say a car, with a minor default unpaid, as long as it is paid, or you can show you are paying it off, and your circumstances have changed for the better.

if you have major unpaid defaults on your credit file, or multiple defaults, you are best not applying for a loan, until you have paid the defaults off.

Credit File