June 20, 2018 Comments Closed

Best Ways to Repair a Bad Credit Report

Posted by:admin onJune 20, 2018

Regardless if we realise it or not, our credit report has a significant impact on our lives. It’s sort of like our health; we don’t treasure good health until we lose it. Many people don’t even know they have a bad credit report until they apply for a line of credit and it’s disapproved. It can come as quite a surprise to some, since even one overlooked payment that is reported by your financial institution can remain on your credit report for a maximum of seven years.

So, what is a credit report? A credit report is a document that points out details about your financial history with financial institutions. Recently, credit reports have been redesigned to place greater attention on constructive history such as paying your bills on time, but overwhelmingly, credit reports are used by creditors to check your ability to repay debts by assessing your past behaviour.

When financial institutions check your credit report, you typically either get a pass or fail so any default irrespective of its severity can have a long-lasting effect on your financial prospects for years to come. While finding solutions to repair a poor credit report can be challenging, there are particular things you can do to enhance it. The good news is, we’ve assembled a list of recommendations that you can try to boost your credit report and your general financial health.

Review your credit report for any mistakes

The first step is to check your credit report to uncover exactly what it comprises of. You can do this by paying a small 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 negative impact on your financial abilities. Read your credit report extensively and dispute any mistakes that you discover to make sure your credit report accurately mirrors your financial history. Some general errors that can occur are:

  •  Errors in personal details
  •  Wrongful defaults and judgements
  •  Old defaults and judgements
  •  Inaccurate information regarding your credit history

If you find any errors, alert 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

People underestimate how critical it is to pay your bills on time. Sometimes, individuals can be forgetful simply because they have too many bills to pay, so it’s a clever idea to get in touch with all your creditors and ask them to automatically debit your bank account every month. Usually, your lenders would be more than happy to do this as sending paper statements is time-consuming and expensive. By putting all your bills on autopilot, you can be certain that they’ll be paid on time and in full, which will have a positive impact on your credit report

Add extra information to your credit report

There are certain details throughout your credit report which lenders will view favourably. As an example, if you are married, have been working with the same company for over two years, or you are a homeowner, then this information will enhance your credit report. Lenders typically view this information in a positive light and it can help you in future credit applications. If you find that this sort of information is missing from your credit report, inform the credit reporting agency and request that it be provided.

Steer clear of excessive credit applications

Each time you make an application for a line of credit, it is mentioned on your credit report. Naturally, excessive applications for credit will have an unfavorable impact on your credit report and the way in which lenders view your financial behaviours. It is paramount that you are prudent and selective when requesting credit and only apply when you are optimistic it will be accepted. In addition, if you recently had a credit application declined, wait a respectable amount of time before applying again.

Look into a debt consolidation loan

Certainly, it can be very difficult to control your debts when then you have lots of them. Overlooking just one debt repayment can become a default, which will stay on your credit report for a minimum of five years. Look into 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, reach out to our friendly team at Bankruptcy Experts Ipswich on 1300 795 575, or alternatively visit our website for more information: Bankruptcy Ipswich

 

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