Best Ways to Repair a Bad Credit Report

Regardless if we realise it or not, our credit report has a considerable impact on our lives. It’s kind of like our health; we don’t appreciate good health until we lose it. Many individuals don’t even find out they have a poor credit report until they apply for a personal line of credit and it’s rejected. It can come as quite a shock to some, simply because even one missed payment that is disclosed by your creditor can stay on your credit report for a maximum of seven years.

So, what is a credit report? A credit report is a record that specifies information about your financial history with creditors. In recent times, credit reports have been revamped to place greater emphasis on constructive history like paying your bills on time, but overwhelmingly, credit reports are used by lenders to gauge your capability to repay debts by assessing your past behaviour.

When creditors inspect your credit report, you usually either get a pass or fail so any default regardless of its severity can have a long-lasting effect on your financial possibilities for years to follow. Although finding solutions to enhance a bad credit report can be complicated, there are various things you can do to strengthen it. The good news is, we’ve put together a list of recommendations that you can try to enhance your credit report and your overall financial health.

Check your credit report for any errors

The first step is to inspect your credit report to uncover exactly what it consists of. You can do this by paying a small fee to a company like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not rare for oversights to be made on credit reports which can have a harmful influence on your financial abilities. Read your credit report extensively and challenge any errors that you discover to make sure your credit report appropriately mirrors your financial history. Some typical oversights 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 errors, inform the credit reporting agency in writing so these listings can be modified or removed to emulate your true credit history.

Pay your bills on time

A lot of people underestimate how significant it is to pay your bills on time. In some cases, individuals can be forgetful simply because they have too many bills to pay, so it’s an intelligent idea to speak with all your creditors and ask them to automatically debit your bank account each month. Often, your lenders would be more than happy to do this as sending paper statements is time-consuming and expensive. By placing all your bills on autopilot, you can be certain that they’ll be paid on time and in full, which will have a positive impact on your credit report

Add additional information to your credit report

There are certain details throughout your credit report which lenders will view favourably. As an example, if you are married, have been working with the same company for more than two years, or you are a property owner, then this information will strengthen 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 sort of information is missing from your credit report, notify the credit reporting agency and request that it be added.

Keep away from too many credit applications

Each time you make an application for a line of credit, it is noted on your credit report. Evidently, too many applications for credit will have a negative impact on your credit report and the way in which lenders view your financial behaviours. It is paramount that you are sensible and selective when applying for credit and only apply when you are confident it will be accepted. At the same time, if you recently had a credit application declined, wait a respectable amount of time before applying again.

Consider a debt consolidation loan

Certainly, it can be very challenging to manage your debts when then you have lots of them. Neglecting just one debt repayment can turn into a default, which will remain on your credit report for a minimum of five years. Look at a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Typically, 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 Cairns on 1300 795 575, or alternatively visit our website for further information: www.bankruptcyexpertscairns.com.au

 

By | 2018-07-16T03:03:51+00:00 June 22nd, 2018|Bankruptcy, blog|0 Comments

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