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Everyone knows impaired credit files immediately void a client’s application or at very least make the task of successful lending more difficult and resource-thirsty for the broker.
With time being a precious commodity these days, some brokers may lean towards abandoning a client’s application once the presence of defaults or adverse entries appear on a credit file.
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At this point, there are options for brokers to salvage some applications if the time is taken to correctly source a reliable solution. However, not all brokers are fully aware of what is available to them in terms of truly reliable and effective solutions.
Most of us in the industry are aware of credit repair services, however in recent years there has been a solid and consistent appearance of credit repairers in an unregulated industry. Due to this market saturation, as well as the presence of some dodgy operators, some brokers are not aware of what truly effective resources are actually available to fix impaired credit files.
Yes, even some of the major players in the credit repair industry operate in unscrupulous ways. These money-grabbers do nothing more than create fury among anyone they deal with and leave a frustrating void which appears may never be filled.
Quite simply, sourcing an effective and reliable credit repairer to work with you on salvaging loan applications that would normally be abandoned is often a hard, frustrating task.
Here are eight of the main faults that can be found in credit repairers:
• Dishonesty
• Pushiness or laziness
• Inexperience of lack of awareness about industry guidelines
• Huge sums of money are demanded upfront with no assurance of success
• Progress fees are charged but no real end result is achieved (these ones still tell you no upfront fees!)
• Clients are told what they want to hear instead of the truth
• Updates and feedback are lacking or nonexistent
• Successful results are few and far between
These reasons and more quite often lead to leaving a tarnished opinion of the credit repair industry with brokers, which in turn results in thousands of applications and clients being turned down or abandoned every year in Australia.
On the other hand, finding a truly effective credit repairer can salvage many applications for a broker, which will ultimately lead to a higher number of satisfied clients plus increased broker revenue. Everyone wins.
The good news for brokers is that, like any industry, there are credit repairers in Australia who provide a committed, professional, compliant and effective service to brokers. Finding them is the trick!
It may or may not be worth salvaging normally impaired applications, and only the individual broker can make that decision based on their desires and resources.
If you do believe it is worth searching for a credit repairer who can assist you with increasing the number of quality applications, there are four key points to look for:
• Make sure the repairer is transparent with a physical location and contact details
• Make sure the repairer maintains a policy of little or preferably zero upfront fees
• Most importantly, make sure the repairer can provide testimonials provided by other readily identifiable and contactable brokers in Australia
• Make sure the repairer is authorised to access Veda credit files if the need arises
If you can find a credit repairer with just these four credentials, you are well on track to securing a partner who will not only increase your results but also build your reputation of being a broker who can provide genuine solutions for clients.
Ask yourself the question: how much increased business would I generate if I salvaged 30 per cent of applications I would normally abandon because of credit file impairment?
Find a credit repairer who only profits if they succeed and everyone benefits in the end!
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