Best Ways to Repair a Poor Credit Report

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Best Ways to Repair a Poor Credit Report

Whether we understand it or not, our credit report has a considerable impact on our lives. It’s kind of like our health; we don’t treasure good health until we lose it. Many individuals 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 rejected. It can come as quite a bombshell to some, given that even one missed payment that is disclosed by your financial institution can remain on your credit report for up to seven years.

So, what is a credit report? A credit report is a report that points out information about your financial history with financial institutions. In recent times, credit reports have been remodelled to place greater importance 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 financial institutions check your credit report, you normally 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. Although finding solutions to strengthen a bad credit report can be tricky, there are a number of things you can do to boost it. Luckily, we’ve compiled a list of ideas that you can try to strengthen 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 comprises of. You can do this by paying a small fee to a business like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not uncommon for oversights to be made on credit reports which can have a harmful influence on your financial capabilities. Read your credit report meticulously and challenge any errors that you find to ensure your credit report appropriately mirrors your financial history. Some general mistakes that can occur are:

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

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

Pay your bills on time

A lot of people underestimate how vital it is to pay your bills on time. Occasionally, people can be forgetful considering that they have too many bills to pay, so it’s an intelligent idea to call all your creditors and ask them to automatically debit your bank account every month. Usually, 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 in full and on time, which will have a positive impact on your credit report

Add additional information to your credit report

There are particular details within your credit report which creditors will view favourably. As an 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 improve your credit report. Creditors typically view this information in a positive light and it can help you in future credit applications. If you find that this type of information is missing from your credit report, notify the credit reporting agency and ask that it be provided.

Steer clear of too many credit applications

Each time you make an application for a line of credit, it is noted on your credit report. Clearly, too many applications for credit will have a harmful impact on your credit report and the way in which creditors view your financial behaviours. It is imperative that you are prudent and selective when requesting credit and only apply when you are confident it will be approved. Moreover, if you recently had a credit application turned down, wait a respectable amount of time before applying again.

Contemplate a debt consolidation loan

Naturally, it can be very complicated to control 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. Take into consideration 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, get in touch with our friendly team at Bankruptcy Experts Adelaide on 1300 795 575, or alternatively visit our website for further information: www.bankruptcyexpertsadelaide.com.au

 

By | 2018-07-16T06:42:04+00:00 June 21st, 2018|bankrupt, blog|0 Comments

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