June 19, 2018 0

Best Ways to Improve a Poor Credit Report

Posted by:Charles Bosse onJune 19, 2018

Regardless if we acknowledge it or not, our credit report has a notable impact on our lives. It’s kind of like our health; we don’t cherish good health until we lose it. Most people don’t even know they have a bad credit report until they make an application for a line of credit and it’s rejected. It can come as quite a bombshell to some, simply because even one overlooked payment that is disclosed by your creditor can remain on your credit report for as much as seven years.

So, what is a credit report? A credit report is a report that stipulates details about your financial history with lenders. In recent years, credit reports have been remodelled to place greater attention on constructive 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 financial institutions inspect your credit report, you commonly either get a pass or fail so any default regardless of its severity can have a long-lasting impact on your financial possibilities for years to follow. Whilst finding solutions to boost a bad credit report can be tough, there are specific things you can do to improve it. Luckily, we’ve assembled a list of ideas that you can try to boost your credit report and your overall financial health.

Review your credit report for any errors

The first step is to inspect your credit report to uncover exactly what it consists of. You can do this by paying a small fee to a firm like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not uncommon for mistakes to be made on credit reports which can have a harmful impact on your financial abilities. Read your credit report extensively and dispute any errors that you find to make sure your credit report appropriately reflects your financial history. Some typical errors that can occur are:

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

If you discover any errors, 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

People underestimate how crucial it is to pay your bills on time. Occasionally, individuals can be forgetful considering that they have too many bills to pay, so it’s a wise idea to contact all your creditors and ask them to automatically debit your bank account each month. Typically, your lenders would be more than happy to do this as delivering paper statements 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 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 example, if you are married, have been employed by the same employer for more than two years, or you are a homeowner, then this information will improve your credit report. Creditors typically view this information in a positive light and it can assist 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.

Avoid too many credit applications

Each time you request a line of credit, it is recorded on your credit report. Evidently, too many applications for credit will have an unfavorable impact on your credit report and the way in which creditors view your financial behaviours. It is crucial that you are reasonable and selective when requesting credit and only apply when you are confident it will be approved. Furthermore, if you recently had a credit application declined, wait a respectable amount of time before applying again.

Think about a debt consolidation loan

Certainly, it can be very difficult to oversee your debts when then you have lots of them. Forgetting just one debt repayment can turn into 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. Commonly, 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, speak with our friendly team at Fresh Start Solutions Darwin on 1300 818 575, or alternatively visit our website for more information: http://freshstartsolutions.com.au/bankruptcy-darwin

 

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