The FBAA has joined forces with MyCRA Credit Rating Repairs to help educate brokers and consumers on issues around credit reporting accuracy and the benefits for loan qualification.
The FBAA's president, Peter White said there was a need within the finance industry for broker members to access help for clients who are blacklisted from credit due to the black marks on their credit file which shouldn't be there.
"This partnership could provide an opportunity for our members to deal with a long term industry player to help ensure those consumers who should qualify for a loan, are given a loan. We hope to see better outcomes for consumers such as less borrowers excluded from mainstream credit, and to reduce the interest rates for those who may otherwise not need to go into non-conforming loans," Mr White said.
MyCRA Credit Rating Repairs is focused on providing a commitment of both service and education to the brokering and finance communities.
Graham Doessel, who is also one of the driving forces and key member of credit rating repair industry body, the Credit Repair Industry Association of Australasia (CRIAA), and has been a frequent media spokesperson on credit reporting issues as they affect consumer and business credit files.
"With credit checks still so vital for obtaining home, business and car loans, the partnership is an avenue for finance professionals to openly discuss and endorse credit rating repair - ensuring their clients are given the best chance at having their credit file accurately reflect their ability to service a loan," Mr Doessel said.
His company MyCRA Credit Rating Repairs checks for errors and inconsistencies on consumer and business credit reports, particularly when those inaccuracies impact on the person's ability to obtain credit, such as a home loan.
Currently most credit reports hold negative data for a period of 5 to 7 years, depending on the listing type. Most negative data including too many credit enquiries can stop people from getting a loan. But Mr Doessel said in the past many brokers have found their hands are tied once the credit check shows negative listings.
"Often times it's not until the broker has done a significant amount of work with the client that the credit check shows up with defaults, clear-outs or court listings, negating the broker's hard work and denying the client credit,” he said.
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