June 19, 20180

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 effect 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 realise they have a poor 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, considering that even one missed payment that is reported by your creditor can stay on your credit report for up to seven years.

So, what is a credit report? A credit report is a report that specifies details about your financial history with creditors. In recent years, credit reports have been overhauled to place greater emphasis on constructive history such as paying your bills on time, but overwhelmingly, credit reports are used by creditors to check 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 follow. While finding solutions to enhance a poor credit report can be difficult, there are particular things you can do to strengthen it. Fortunately, we’ve assembled a list of ideas 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 learn exactly what it comprises of. You can do this by paying a modest fee to an agency like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not rare for mistakes to be made on credit reports which can have a damaging influence on your financial abilities. Read your credit report extensively and challenge any oversights that you discover to make sure your credit report appropriately mirrors your financial history. Some common oversights that can occur are:

  • Errors in personal information
  • Wrongful defaults and judgements
  • Old defaults and judgements
  • Inaccurate information relating to your credit history

If you find any errors, inform 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, individuals can be forgetful considering that they have too many bills to pay, so it’s a smart idea to contact all your lenders and ask them to automatically debit your bank account each month. Typically, your creditors 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 sure 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 particular details within your credit report which creditors will view positively. For instance, if you are married, have been working with the same company for over two years, or you are a property owner, then this information will strengthen your credit report. Lenders generally view this information in a positive light and it can assist in future credit applications. If you discover that this sort of information is missing from your credit report, advise the credit reporting agency and request that it be included.

Keep away from excessive credit applications

Every time you apply for a line of credit, it is noted on your credit report. Evidently, too many applications for credit will have an adverse effect on your credit report and the way in which lenders view your financial behaviours. It is vital that you are shrewd and selective when requesting credit and only apply when you are confident it will be accepted. Additionally, if you recently had a credit application denied, wait a decent amount of time before applying again.

Take into consideration a debt consolidation loan

Generally, it can be very challenging to oversee your debts when then you have lots of them. Neglecting just one debt repayment can become a default, which will stay on your credit report for a minimum of five years. Contemplate a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Normally, 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 on 1300 818 575, or alternatively visit our website for additional information: https://freshstartsolutions.com.au


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