Best Ways to Repair a Poor Credit Report

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Best Ways to Repair a Poor Credit Report

Regardless if we understand it or not, our credit report has a notable impact on our lives. It’s sort of like our health; we don’t cherish good health until we lose it. Most individuals don’t even realise 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 bombshell to some, simply because even one overlooked payment that is documented by your lender can remain on your credit report for as much as seven years.

So, what is a credit report? A credit report is a report that stipulates information about your financial history with financial institutions. Recently, credit reports have been overhauled to place greater focus on constructive history such as paying your bills on time, but overwhelmingly, credit reports are used by financial institutions to examine your ability to repay debts by assessing your past behaviour.

When creditors inspect your credit report, you typically either get a pass or fail so any default irrespective of its severity can have a long-lasting impact on your financial possibilities for years to follow. While finding solutions to strengthen a poor credit report can be difficult, there are a number of things you can do to enhance it. Luckily, we’ve put together a list of ideas that you can try to boost your credit report and your overall financial health.

Examine your credit report for any errors

The first step is to check your credit report to find exactly what it features. 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 uncommon for mistakes to be made on credit reports which can have a harmful effect on your financial abilities. Read your credit report carefully and challenge any errors that you discover to ensure your credit report appropriately emulates your financial history. Some standard mistakes that can occur are:

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

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

Pay your bills on time

Lots of people underestimate how valuable it is to pay your bills on time. Sometimes, people can be forgetful simply because they have too many bills to pay, so it’s a smart idea to speak 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 posting paper statements is time-consuming and expensive. By putting 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 specific details throughout your credit report which creditors will view positively. As an example, if you are married, have been employed by the same company for over two years, or you are a homeowner, then this information will enhance your credit report. Lenders typically view this information in a positive light and it can assist in future credit applications. If you find that this sort of information is missing from your credit report, alert the credit reporting agency and request that it be added.

Steer clear of excessive credit applications

Every time you make an application for a line of credit, it is recorded on your credit report. Evidently, too many applications for credit will have a damaging effect on your credit report and the way in which creditors view your financial behaviours. It’s important that you are shrewd and selective when making an application for credit and only apply when you are confident it will be accepted. Furthermore, if you recently had a credit application declined, wait a decent amount of time before applying again.

Consider a debt consolidation loan

Certainly, it can be very tough to oversee your debts when then you have lots of them. Overlooking just one debt repayment can become a default, which will remain on your credit report for at least five years. Contemplate a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Usually, 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 touch with our friendly team at Bankruptcy Experts Northern Rivers on 1300 795 575, or alternatively visit our website for more information: www.bankruptcyexpertsnorthernrivers.com.au

 

By | 2018-07-16T06:42:42+00:00 June 21st, 2018|Bankrupt, Blog|0 Comments

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