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Best Ways to Repair a Bad Credit Report

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Best Ways to Repair a Bad Credit Report

Regardless if we understand it or not, our credit report has a significant influence 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 apply 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 disclosed by your lender can stay on your credit report for as much as seven years.

So, what is a credit report? A credit report is a report that stipulates details about your financial history with financial institutions. Recently, credit reports have been overhauled to place greater attention on favourable history like paying your bills on time, but overwhelmingly, credit reports are used by creditors to examine your capability to repay debts by assessing your past behaviour.

When lenders review your credit report, you typically either get a pass or fail so any default regardless of its severity can have a long-lasting impact on your financial prospects for years to follow. Whilst finding solutions to repair a bad credit report can be tricky, there are particular things you can do to boost it. Fortunately, we’ve gathered a list of recommendations that you can try to boost your credit report and your overall financial health.

Check your credit report for any errors

The first step is to review your credit report to learn exactly what it comprises of. You can do this by paying a small fee to a firm 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 a negative impact on your financial abilities. Read your credit report meticulously and challenge any oversights that you find to make sure your credit report accurately emulates your financial history. Some common mistakes that can occur are:

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

If you find any errors, advise the credit reporting agency in writing so these listings can be amended or removed to reflect your true credit history.

Pay your bills on time

People underestimate how valuable it is to pay your bills on time. Sometimes, people can be forgetful considering that they have too many bills to pay, so it’s a clever idea to call all your creditors and ask them to automatically debit your bank account every month. Often, your lenders would be more than happy to do this as delivering paper invoices 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 extra information to your credit report

There are particular details within your credit report which creditors will view favourably. For 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 boost your credit report. Lenders commonly view this information in a positive light and it can help you in future credit applications. If you discover that this kind of information is missing from your credit report, notify the credit reporting agency and request that it be included.

Steer clear of excessive credit applications

Each time you request a line of credit, it is mentioned on your credit report. Evidently, 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 imperative that you are shrewd and selective when requesting credit and only apply when you are confident it will be approved. At the same time, if you recently had a credit application turned down, wait a decent amount of time before applying again.

Consider a debt consolidation loan

Generally, it can be very difficult to control your debts when then you have lots of them. Forgetting just one debt repayment can become a default, which will remain on your credit report for a minimum of five years. Contemplate a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Generally, interest rates on debt consolidation loans are fairly 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 contact with our friendly team at Bankruptcy Experts Emerald on 1300 795 575, or alternatively visit our website for additional information: www.bankruptcyexpertsemerald.com.au

 

By | 2018-07-16T05:52:36+00:00 June 20th, 2018|Article, Bankruptcy, Blog|0 Comments

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