June 19, 2018 0

Best Ways to Repair a Poor Credit Report

Posted by:Charles Bosse onJune 19, 2018

Whether we realise it or not, our credit report has a significant effect on our lives. It’s kind of like our health; we don’t treasure good health until we lose it. Lots of people don’t even realise they have a poor credit report until they apply for a line of credit and it’s disapproved. It can come as quite a shock to some, simply because even one missed payment that is disclosed 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 document that specifies details about your financial history with financial institutions. Recently, credit reports have been redesigned to place greater emphasis on constructive history such as paying your bills on time, but overwhelmingly, credit reports are used by creditors to evaluate your capability to repay debts by assessing your past behaviour.

When creditors review your credit report, you typically either get a pass or fail so any default regardless of its severity can have a long-lasting influence on your financial possibilities for years to come. Although finding solutions to strengthen a bad credit report can be tough, there are certain things you can do to boost it. The good news is, we’ve assembled a list of recommendations that you can try to enhance your credit report and your general financial health.

Inspect your credit report for any errors

The first step is to review your credit report to find exactly what it comprises of. You can do this by paying a modest 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 an adverse effect on your financial abilities. Read your credit report meticulously and challenge any errors that you find to make sure your credit report appropriately reflects your financial history. Some general oversights that can occur are:

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

If you uncover any mistakes, 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

Individuals underestimate how valuable 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 smart idea to get in touch with all your lenders and ask them to automatically debit your bank account each month. Generally, your lenders would be more than happy to do this as sending paper invoices is time-consuming and expensive. By putting all your bills on autopilot, you can be sure that they’ll be paid on time and in full, which will have a positive effect on your credit report

Add extra information to your credit report

There are a number of details throughout your credit report which creditors will view positively. For example, if you are married, have been working with the same workplace for over two years, or you are a property owner, then this information will boost your credit report. Creditors commonly view this information in a positive light and it can assist in future credit applications. If you discover that this kind of information is missing from your credit report, alert the credit reporting agency and ask that it be provided.

Keep away from too many credit applications

Every time you apply for a line of credit, it is noted on your credit report. Naturally, too many applications for credit will have a harmful impact on your credit report and the way in which lenders view your financial behaviours. It is crucial that you are sensible and selective when requesting credit and only apply when you are optimistic it will be approved. At the same time, if you recently had a credit application declined, wait a decent amount of time before applying again.

Take into consideration a debt consolidation loan

Generally, it can be very challenging to manage 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. Think about 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, get in contact with our friendly team at Fresh Start Solutions Adelaide on 1300 818 575, or alternatively visit our website for more information: http://freshstartsolutions.com.au/bankruptcy-adelaide

 

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