Best Ways to Repair a Poor Credit Report

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Best Ways to Repair a Poor Credit Report

Regardless if we realise it or not, our credit report has a significant influence on our lives. It’s sort of like our health; we don’t treasure 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 surprise to some, given that even one missed payment that is documented by your financial institution 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 points out details about your financial history with financial institutions. In recent times, credit reports have been remodelled to place greater emphasis on favourable history such as paying your bills on time, but overwhelmingly, credit reports are used by lenders to check your capability to repay debts by assessing your past behaviour.

When creditors check your credit report, you normally either get a pass or fail so any default regardless of its severity can have a long-lasting impact on your financial opportunities for years to come. While finding solutions to improve a poor credit report can be difficult, there are various things you can do to improve it. Luckily, we’ve gathered a list of suggestions that you can try to enhance your credit report and your overall financial health.

Check your credit report for any oversights

The first step is to check your credit report to discover exactly what it features. 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 out of the ordinary for mistakes to be made on credit reports which can have a negative impact on your financial abilities. Read your credit report meticulously and challenge any mistakes that you find to ensure your credit report accurately mirrors your financial history. Some typical errors that can occur are:

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

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

 

Pay your bills on time

A lot of people underestimate how critical it is to pay your bills on time. In some cases, people can be forgetful considering that they have too many bills to pay, so it’s a wise idea to contact all your lenders and ask them to automatically debit your bank account every month. Normally, your creditors would be more than happy to do this as sending 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 impact on your credit report

 

Add extra information to your credit report

There are particular details throughout your credit report which lenders will view favourably. For instance, if you are married, have been working for the same workplace for more than two years, or you are a homeowner, then this information will enhance your credit report. Creditors typically view this information in a positive light and it can assist in future credit applications. If you discover that this type of information is missing from your credit report, inform the credit reporting agency and request that it be added.

 

Steer clear of too many credit applications

Each time you request a line of credit, it is noted on your credit report. Obviously, too many applications for credit will have a negative effect on your credit report and the way in which lenders view your financial behaviours. It is essential that you are sensible and selective when applying for credit and only apply when you are optimistic it will be approved. Likewise, if you recently had a credit application rejected, wait a respectable amount of time before applying again.

 

Consider a debt consolidation loan

Naturally, it can be very hard to manage your debts when then you have lots of them. Neglecting just one debt repayment can turn into a default, which will stay 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. Usually, interest rates on debt consolidation loans are fairly low, and you’ll eliminate any further defaults which will have a positive effect on your credit report. If you’re interested in a debt consolidation loan, speak with our friendly team at Bankruptcy Experts Frankston on 1300 795 575, or alternatively visit our website for more information: www.bankruptcyexpertsfrankston.com.au

 

By | 2018-07-16T02:08:35+00:00 June 20th, 2018|Bankruptcy|0 Comments

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