June 19, 2018 0

Best Ways to Repair a Bad Credit Report

Posted by:Charles Bosse onJune 19, 2018

Regardless if we realise it or not, our credit report has a notable impact 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 poor credit report until they apply for a line of credit and it’s disapproved. It can come as quite a surprise to some, considering that even one overlooked payment that is documented by your lender can stay on your credit report for up to seven years.

So, what is a credit report? A credit report is a record that specifies details about your financial history with lenders. Recently, credit reports have been revamped to place greater importance on constructive history like paying your bills on time, but overwhelmingly, credit reports are used by financial institutions to calculate your capability to repay debts by assessing your past behaviour.

When financial institutions review your credit report, you commonly either get a pass or fail so any default irrespective of its severity can have a long-lasting influence on your financial possibilities for years to follow. While finding solutions to enhance a bad credit report can be tough, there are certain things you can do to boost it. Fortunately, we’ve gathered a list of suggestions that you can try to boost your credit report and your general financial health.

Examine your credit report for any oversights

The first step is to review your credit report to discover exactly what it contains. 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 oversights to be made on credit reports which can have a harmful impact on your financial capabilities. Read your credit report extensively and dispute any oversights that you find to ensure your credit report appropriately mirrors your financial history. Some general oversights that can occur are:

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

If you unveil any oversights, notify 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

People underestimate how vital it is to pay your bills on time. In some cases, people can be forgetful simply because they have too many bills to pay, so it’s a smart idea to contact all your creditors and ask them to automatically debit your bank account each month. Ordinarily, your lenders would be more than happy to do this as posting paper invoices is time-consuming and costly. By putting all your bills on autopilot, you can be certain that they’ll be paid in full and on time, which will have a positive effect on your credit report

Add additional information to your credit report

There are a number of details throughout your credit report which lenders will view favourably. For instance, if you are married, have been employed by the same employer for over two years, or you are a property owner, then this information will enhance your credit report. Lenders normally view this information in a positive light and it can assist in future credit applications. If you uncover that this kind 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 apply for a line of credit, it is recorded on your credit report. Naturally, excessive applications for credit will have a detrimental impact on your credit report and the way in which creditors view your financial behaviours. It is essential that you are prudent and selective when requesting credit and only apply when you are optimistic it will be accepted. Likewise, if you recently had a credit application denied, wait a decent amount of time before applying again.

Contemplate a debt consolidation loan

Generally, it can be very complicated to control your debts when then you have lots of them. Forgetting just one debt repayment can become a default, which will stay on your credit report for at least five years. Take into consideration a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Commonly, 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, speak to our friendly team at Fresh Start Solutions Gold Coast on 1300 818 575, or alternatively visit our website for additional information: http://freshstartsolutions.com.au/bankruptcy-goldcoast

 

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