Best Ways to Repair a Bad Credit Report

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 mistakes

The 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

If you unveil any errors, notify the credit reporting agency in writing so these listings can be modified or removed to emulate your true credit history.

Pay your bills on time

Lots of people underestimate how critical it is to pay your bills on time. In some cases, people can be forgetful considering that they have too many bills to pay, so it’s a wise idea to speak to all your creditors and ask them to automatically debit your bank account each month. Often, 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 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 example, if you are married, have been working with the same employer for more than two years, or you are a property owner, then this information will enhance your credit report. Lenders commonly view this information in a positive light and it can assist in future credit applications. If you see that this type of information is missing from your credit report, notify the credit reporting agency and ask that it be provided.

Keep away from excessive credit applications

Each time you make an application for a line of credit, it is documented on your credit report. Evidently, 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 vital that you are reasonable and selective when requesting credit and only apply when you are confident it will be accepted. Furthermore, if you recently had a credit application rejected, wait a decent amount of time before applying again.

Look into a debt consolidation loan

Naturally, it can be very tricky to control your debts when then you have lots of them. Neglecting just one debt repayment can turn into a default, which will remain 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 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, get in contact with our friendly team at Bankruptcy Bundaberg on 1300 795 575, or alternatively visit our website for further information: www.bankruptcyexpertsbundaberg.com.au