Given this, it is vitally important that all Consumers and non-consumer entities review their consumer and commercial credit files to ensure (i) the information that is held is accurate, (ii) that information held is not deprecating to the credit score algorithms’ used by the Credit Reporting Bureaus.
Something as simple as holding directorships in multiple corporate entities, even if there are no personal liabilities with these corporations, will be enough to crash your credit score and could cause your next Credit Application to be declined automatically.
We Fix Credit specialises in analysing Customers Individual Consumer and Commercial Credit Files along with their Corporate/Business Credit Files and assist with rectification programs to improve the way in which the various Credit Reporting Bureau’s algorithms interpret the information held on these files. For more information, please contact us today for an obligation free discussion on how we can assist you.
The use of credit scoring is not new, however started to become a tool of choice with the major retail consumer lenders such as the Commonwealth Bank, NAB, ANZ Westpac and others from early 2000. The cost of employing Loan Processing Officers saw the Banks start automating their Application Process to dispense with the cost of employing these people. Consumers were encouraged to apply on-line with the Internet for their Personal Loans and Credit Cards. The engagement of actuaries to research these lender’s historical data on current and previous loan customers to establish various profiles and develop algorithms which would, according a point score system, would either approve an application or decline it! Simple situations where a customer had three enquiries within three months or six enquiries within six months would trigger an automatic decline for these consumer products. The length of time in employment and residential history also play a part and the list goes on.
Since then the Credit Reporting Bureaus’ have refined and developed the process where the Lending Institutions now use the Credit Reporting Bureau’s data rather than their own.