If I don’t pay, what can happen? Will it affect my credit score? What is a credit score? Can we default the debtor? Do we need to remove the default?
I am asked questions like this by debtors and creditors respectively.
For debtors: If you don’t pay a creditor, then the creditor can take steps to report the default in payment. This can affect your credit score which will cause problems when applying for credit.
For creditors: credit reporting needs to be accurate and not misleading be careful with listing defaults if there is a dispute about the debt.
A great article recently published by ASIC and Moneysmart tells you all you need to know about the new credit reporting regime and how it might affect you (if you’re a debtor) and how you might report debtors (if you’re a creditor).
Click here to read the article.