Best Ways to Repair a Bad Credit Report

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Best Ways to Repair a Bad Credit Report

Whether we understand it or not, our credit report has a serious influence on our lives. It’s sort of like our health; we don’t appreciate good health until we lose it. Most individuals don’t even learn that they have a poor credit report until they apply for a line of credit and it’s rejected. It can come as quite a shock to some, considering that even one missed payment that is disclosed by your lender can stay on your credit report for up to seven years.

So, what is a credit report? A credit report is a record that stipulates information about your financial history with creditors. Recently, credit reports have been revamped to place greater focus on favourable history like paying your bills on time, but overwhelmingly, credit reports are used by lenders to analyse your capability to repay debts by assessing your past behaviour.

When lenders inspect 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 follow. Although finding solutions to enhance a poor credit report can be challenging, there are a number of things you can do to boost it. Fortunately, we’ve put together a list of suggestions that you can try to strengthen your credit report and your general financial health.

Examine your credit report for any oversights

The first step is to review your credit report to learn exactly what it features. You can do this by paying a small fee to a business like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not unusual for mistakes to be made on credit reports which can have an adverse influence on your financial capabilities. Read your credit report meticulously and challenge any mistakes that you find to ensure your credit report accurately emulates your financial history. Some common errors that can occur are:

  •  Errors in personal details
  •  Wrongful defaults and judgements
  •  Old defaults and judgements
  •  Inaccurate information regarding your credit history

If you unmask any mistakes, alert the credit reporting agency in writing so these listings can be altered or removed to reflect your true credit history.

Pay your bills on time

People underestimate how critical 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 wise idea to call all your lenders and ask them to automatically debit your bank account each month. Generally, your lenders would be more than happy to do this as posting paper statements is time-consuming and expensive. By putting all your bills on autopilot, you can be sure that they’ll be paid in full and on time, which will have a positive effect on your credit report

Add additional information to your credit report

There are a number of details throughout your credit report which creditors will view favourably. As an example, if you are married, have been working for the same company for more than two years, or you are a property owner, then this information will improve your credit report. Creditors usually view this information in a positive light and it can assist in future credit applications. If you discover that this kind of information is missing from your credit report, alert the credit reporting agency and ask that it be added.

Avoid excessive credit applications

Each time you make an application for a line of credit, it is recorded on your credit report. Clearly, too many applications for credit will have a damaging impact on your credit report and the way in which lenders view your financial behaviours. It is imperative that you are shrewd and selective when applying for credit and only apply when you are optimistic it will be approved. Moreover, if you recently had a credit application rejected, wait a decent amount of time before applying again.

Contemplate a debt consolidation loan

Of course, it can be very problematic to oversee your debts when then you have lots of them. Neglecting just one debt repayment can become a default, which will stay 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, reach out to our friendly team at Bankruptcy Experts Kalgoorlie on 1300 795 575, or alternatively visit our website for more information: www.bankruptcyexpertskalgoorlie.com.au

 

By | 2018-07-16T06:41:07+00:00 June 21st, 2018|Article, bankruptcy, blog|0 Comments

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