Best Ways to Repair a Bad Credit Report

/, Design/Best Ways to Repair a Bad Credit Report

Regardless if we realise it or not, our credit report has a substantial effect on our lives. It’s sort of like our health; we don’t appreciate good health until we lose it. Many people don’t even find out they have a bad credit report until they make an application for a personal line of credit and it’s rejected. It can come as quite a surprise to some, simply because even one overlooked payment that is documented by your financial institution can remain on your credit report for as much as seven years.

So, what is a credit report? A credit report is a record that points out information about your financial history with creditors. Recently, credit reports have been revamped to place greater attention on constructive history like paying your bills on time, but overwhelmingly, credit reports are used by creditors to gauge your ability to repay debts by assessing your past behaviour.

When financial institutions review your credit report, you usually either get a pass or fail so any default irrespective of its severity can have a long-lasting effect on your financial possibilities for years to come. Even though finding solutions to boost a bad credit report can be complicated, there are various things you can do to strengthen it. Luckily, we’ve assembled a list of ideas that you can try to strengthen your credit report and your overall financial health.

Inspect your credit report for any errors

The first step is to check your credit report to uncover exactly what it comprises of. You can do this by paying a small fee to an agency like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not rare for errors to be made on credit reports which can have an undesirable impact on your financial capabilities. Read your credit report meticulously and dispute any mistakes that you find to ensure your credit report accurately reflects your financial history. Some standard oversights that can occur are:

  • Mistakes in personal details
  • Wrongful defaults and judgements
  • Old defaults and judgements
  • Incorrect information relating to your credit history

If you uncover any errors, inform the credit reporting agency in writing so these listings can be altered or removed to mirror your true credit history.

Pay your bills on time

Individuals underestimate how vital it is to pay your bills on time. Occasionally, people can be forgetful considering that they have too many bills to pay, so it’s a smart idea to speak to all your lenders and ask them to automatically debit your bank account each month. Often, your creditors would be more than happy to do this as posting paper statements is time-consuming and costly. By placing all your bills on autopilot, you can be sure that they’ll be paid on time and in full, which will have a positive impact on your credit report

Add extra information to your credit report

There are a number of details throughout your credit report which lenders will view positively. As an example, if you are married, have been working for the same employer for over two years, or you are a property owner, then this information will boost your credit report. Lenders generally view this information in a positive light and it can assist in future credit applications. If you discover that this sort of information is missing from your credit report, inform the credit reporting agency and request that it be included.

Keep away from too many credit applications

Each time you make an application for a line of credit, it is mentioned on your credit report. Clearly, excessive applications for credit will have a damaging effect on your credit report and the way in which creditors view your financial behaviours. It is essential that you are vigilant and selective when making an application for credit and only apply when you are optimistic it will be accepted. Moreover, if you recently had a credit application turned down, wait a respectable amount of time before applying again.

Look into a debt consolidation loan

Certainly, it can be very complicated to oversee your debts when then you have lots of them. Neglecting just one debt repayment can become a default, which will remain on your credit report for a minimum of five years. Consider a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Normally, interest rates on debt consolidation loans are quite low, and you’ll eliminate any further defaults which will have a positive impact on your credit report. If you’re interested in a debt consolidation loan, speak with our friendly team at Bankruptcy Advice Perth on 1300 879 867, or alternatively visit our website for further information: www.bankruptcy-advice.com.au/perth

 

No comments yet.

Leave a comment

Your email address will not be published.