Have you applied for a loan recently and had it declined? It may be because you have a credit default recorded against your name

Thousands of Australians are applying for loans everyday, and the sad reality is that not all applications are accepted.

More than likely, if you have been refused for a loan it would be one of two reasons, either you don't service ie: make enough money compared to the amount of debts you have, or you have a black mark on your credit rating, known in the industry as a bad CRA , which is short for Credit Reporting Agency.

Having said this, we were astounded when we found out how many people had no idea what a CRA is. We would like to make you aware of a few things that may affect your ability to borrow funds.

Firstly, you should get a copy of your credit report from the Credit Reporting Agency, once you get this report, you should show your R&W Consultant so they can assess your situation and find a lender to suit.

Secondly, you must never apply for multiple loans at the same time. What I mean by this is, filling in more than one application and then submitting them to different lenders in one go. While it may seem like a clever idea at the time, it is a big mistake!

Applying for multiple loans at the same time and your CRA

Whenever you make an application for credit, the lender will check your CRA for your credit worthiness, this action is recorded on your CRA and when a different lender looks at the amount of times you applied for the loan, they will brand you an APC (aggressive pursuer of credit) put simply, in their eyes you will look too desperate to get money, and this sounds warning bells.

Why do they have a CRA? and who has access to it?

Credit Reporting Agencies were put in place for banks and other non bank lenders to basically see if you have been good or bad when it comes to borrowing money. For example, if you default on a loan, the lender will list list you on the CRA so when you go for another loan the new lender is advised of your actions. Your CRA information is accesable to any person performing a financial transaction on your behalf and ofcourse to you should you wish to view it.

The most common cases are where people dispute a telephone, pay tv or utility bill, and out of principal refuse to pay until they receive a letter from a collection agency. Even when they finally pay their bill reluctantly, the company has reported them to a Credit Reporting Agency, they only find out about this when they apply for another loan and get refused.

Can I get a copy of my CRA?

Getting a report of your CRA is a free service from Veda Advantage which takes around 7 days, otherwise you can get the premium service where you pay $40 and you will receive it within 24 hours either by Post, Fax or email, it's your choice. Payment can also be charged to your home phone or credit card.

Visit the Credit Reporting agency Here