Regardless if we acknowledge it or not, our credit report has a meaningful influence on our lives. It’s sort of like our health; we don’t cherish good health until we lose it.
Lots of people don’t even learn that they have a poor credit report until they make an application for a line of credit and it’s disapproved.
It can come as quite a shock to some, given that even one missed payment that is disclosed by your creditor can remain on your credit report for up to seven years.
So, what is a credit report? A credit report is a record that stipulates information about your financial history with financial institutions.
In recent times, credit reports have been remodelled to place greater importance on constructive history such as paying your bills on time, but overwhelmingly, credit reports are used by creditors to gauge your capability to repay debts by assessing your past behaviour.
When lenders check 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.
Whilst finding solutions to repair a bad credit report can be tough, there are certain things you can do to strengthen it. The good news is, we’ve assembled a list of ideas that you can try to enhance your credit report and your general financial health.
Check your credit report for any mistakesThe first step is to examine your credit report to discover exactly what it comprises of. You can do this by paying a modest fee to a business like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not unusual for mistakes to be made on credit reports which can have a harmful effect on your financial abilities. Read your credit report extensively and challenge any errors that you find to ensure your credit report accurately mirrors your financial history. Some general mistakes that can occur are:
- Mistakes in personal information
- Wrongful defaults and judgements
- Old defaults and judgements
- Inaccurate information concerning your credit history