Best Ways to Repair a Poor Credit Report

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Best Ways to Repair a Poor Credit Report

Regardless if we realise it or not, our credit report has a considerable effect on our lives. It’s kind of like our health; we don’t treasure good health until we lose it. Lot of people don’t even learn that they have a poor credit report until they apply for a line of credit and it’s disapproved. It can come as quite a shock to some, simply because even one overlooked payment that is disclosed by your creditor can stay on your credit report for a maximum of seven years.

So, what is a credit report? A credit report is a report that specifies details about your financial history with financial institutions. In recent times, credit reports have been remodelled to place greater focus on constructive history such as paying your bills on time, but overwhelmingly, credit reports are used by lenders to examine your ability to repay debts by assessing your past behaviour.

When lenders check your credit report, you usually either get a pass or fail so any default regardless of its severity can have a long-lasting effect on your financial possibilities for years to come. Although finding solutions to enhance a bad credit report can be challenging, there are various things you can do to boost it. Luckily, we’ve assembled a list of recommendations that you can try to boost your credit report and your overall financial health.

Inspect your credit report for any errors

The first step is to examine your credit report to discover exactly what it contains. You can do this by paying a small fee to a business 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 detrimental effect on your financial abilities. Read your credit report meticulously and dispute any oversights that you find to ensure your credit report accurately emulates your financial history. Some typical errors that can occur are:

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

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

Pay your bills on time

Individuals underestimate how vital 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 get in touch with all your lenders and ask them to automatically debit your bank account each month. Generally, your lenders would be more than happy to do this as delivering paper invoices 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 extra information to your credit report

There are a number of details within your credit report which creditors will view favourably. For example, if you are married, have been working for the same employer for more than two years, or you are a property owner, then this information will improve your credit report. Creditors generally view this information in a positive light and it can help you in future credit applications. If you discover that this type of information is missing from your credit report, inform the credit reporting agency and ask that it be provided.

Steer clear of excessive credit applications

Each time you apply for a line of credit, it is documented on your credit report. Naturally, too many applications for credit will have an unfavorable impact on your credit report and the way in which lenders view your financial behaviours. It is essential that you are shrewd and selective when requesting credit and only apply when you are confident it will be accepted. At the same time, if you recently had a credit application turned down, wait a respectable amount of time before applying again.

Contemplate a debt consolidation loan

Of course, it can be very tricky to control your debts when then you have lots of them. Forgetting just one debt repayment can become a default, which will remain on your credit report for at least five years. Contemplate a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Commonly, 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, speak to our friendly team at Bankruptcy Experts Shellharbour on 1300 795 575, or alternatively visit our website for more information: www.bankruptcyexpertsshellharbour.com.au

 

By | 2018-07-16T06:27:14+00:00 June 21st, 2018|Bankrupt, Blog|0 Comments

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