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 meaningful impact on our lives. It’s kind of like our health; we don’t treasure good health until we lose it. Most individuals don’t even find out they have a bad credit report until they apply for a line of credit and it’s disapproved. It can come as quite a bombshell to some, simply because even one missed payment that is documented 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 points out details about your financial history with lenders. In recent years, credit reports have been revamped to place greater focus on favourable history like paying your bills on time, but overwhelmingly, credit reports are used by financial institutions to evaluate your ability to repay debts by assessing your past behaviour.

When lenders inspect your credit report, you normally 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. Whilst finding solutions to strengthen a bad credit report can be tricky, there are various things you can do to improve it. Luckily, we’ve assembled a list of recommendations that you can try to strengthen your credit report and your general financial health.

Examine your credit report for any errors

The first step is to review your credit report to find exactly what it contains. You can do this by paying a small fee to an agency like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not unusual for errors to be made on credit reports which can have a damaging effect on your financial capabilities. Read your credit report extensively and challenge any errors that you discover to make sure your credit report accurately emulates your financial history. Some typical mistakes that can occur are:

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

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

Pay your bills on time

Lots of people underestimate how critical it is to pay your bills on time. Sometimes, individuals can be forgetful considering that they have too many bills to pay, so it’s an intelligent idea to get in touch with all your lenders and ask them to automatically debit your bank account every month. Generally, 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 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 certain details within your credit report which lenders will view positively. For instance, if you are married, have been employed by the same company for more than two years, or you are a property owner, then this information will strengthen your credit report. Creditors generally view this information in a positive light and it can help you 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.

Keep away from too many credit applications

Each time you apply for a line of credit, it is mentioned 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 essential that you are prudent and selective when applying for credit and only apply when you are confident it will be approved. At the same time, if you recently had a credit application rejected, wait a respectable amount of time before applying again.

Look at a debt consolidation loan

Of course, it can be very tricky to oversee your debts when then you have lots of them. Neglecting 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. Generally, 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, contact our friendly team at Fresh Start Solutions Sydney on 1300 818 575, or alternatively visit our website for additional information: http://freshstartsolutions.com.au/bankruptcy-sydney

 

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