Best Ways to Repair a Poor Credit Report

Bankruptcy Experts Gold Coast

Whether we realise it or not, our credit report has a serious impact on our lives. It’s sort of like our health; we don’t appreciate good health until we lose it. Lots of people don’t even learn that they have a bad credit report until they make an application for a personal line of credit and it’s disapproved. It can come as quite a surprise to some, given that even one missed payment that is documented by your lender can remain on your credit report for a maximum of seven years.

So, what is a credit report? A credit report is a report that specifies details about your financial history with creditors. Recently, credit reports have been redesigned to place greater emphasis on constructive history like paying your bills on time, but overwhelmingly, credit reports are used by creditors to check your capability to repay debts by assessing your past behaviour.

When financial institutions check your credit report, you commonly 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. While finding solutions to repair a poor credit report can be tough, there are a number of things you can do to improve 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.

Examine your credit report for any oversights

The first step is to review your credit report to uncover exactly what it consists of. You can do this by paying a modest fee to a company like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not unusual for oversights to be made on credit reports which can have a harmful impact on your financial capabilities. Read your credit report extensively and dispute any oversights that you find to make sure your credit report accurately mirrors your financial history. Some common errors that can occur are:

  •  Mistakes in personal details
  •  Wrongful defaults and judgements
  •  Old defaults and judgements
  •  Inaccurate information concerning your credit history

If you find any oversights, advise 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 significant it is to pay your bills on time. Occasionally, people can be forgetful simply because they have too many bills to pay, so it’s a clever idea to get in touch with all your creditors and ask them to automatically debit your bank account every month. Normally, your lenders would be more than happy to do this as sending paper invoices is time-consuming and costly. By putting all your bills on autopilot, you can be certain that they’ll be paid in full and on time, which will have a positive effect on your credit report

Add extra information to your credit report

There are a number of details within your credit report which lenders will view positively. For instance, if you are married, have been employed by the same employer for more than two years, or you are a property owner, then this information will strengthen your credit report. Lenders commonly view this information in a positive light and it can help you in future credit applications. If you uncover that this sort of information is missing from your credit report, notify the credit reporting agency and ask that it be added.

Steer clear of too many credit applications

Every time you request a line of credit, it is recorded on your credit report. Clearly, excessive applications for credit will have a negative impact on your credit report and the way in which lenders view your financial behaviours. It is crucial that you are prudent and selective when requesting credit and only apply when you are optimistic it will be approved. Also, if you recently had a credit application rejected, wait a respectable amount of time before applying again.

Take into consideration a debt consolidation loan

Naturally, it can be very hard to manage your debts when then you have lots of them. Overlooking just one debt repayment can turn into 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. Commonly, 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, get in touch with our friendly team at Bankruptcy Experts Gold Coast on 1300 879 867, or alternatively visit our website for more information: www.bankruptcyexpertsgoldcoast.com.au

 

By | 2018-07-25T01:33:27+00:00 June 20th, 2018|Article, bankruptcy, Blog|0 Comments

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