Credit File ‘Gotchas’

Almost all who need finance for medical equipment will have ‘clean’ credit histories.  In fact, I’ve had only one for whom their credit file had an issue.  But, as a broker for personal loans, I have encountered several cases of credit file problems, some of which are minor and easily fixed.

‘Footprints’ in your credit file are mainly placed by credit providers in response to an application for credit, and it doesn’t matter if the credit was or wasn’t approved.  Because some lenders don’t like to see a lot of credit enquiries, it’s a good idea to use a broker to help you decide on the right lender, rather than making multiple applications.  Also beware the convenience of making credit applications online.  Other sources of footprints are failure to pay or late payments on a commitment, defaults, judgments, directorships, and court actions, even if resolved in your favour.

All footprints remain for five years, so it’s a good idea to check your file periodically.  If you find something inaccurate or trivial (i.e., late phone payment), there are services that specialise in cleaning up credit files.

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