Best Ways to Repair a Poor Credit Report

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Best Ways to Repair a Poor Credit Report

Whether we acknowledge 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. Lot of people don’t even realise 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 bombshell to some, simply because even one missed payment that is documented by your lender can stay on your credit report for up to seven years.

So, what is a credit report? A credit report is a record that points out information about your financial history with lenders. 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 analyse your capability to repay debts by assessing your past behaviour.

When lenders inspect your credit report, you generally 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 come. Whilst finding solutions to boost a poor credit report can be difficult, there are particular things you can do to boost it. Fortunately, we’ve put together a list of suggestions that you can try to strengthen your credit report and your general financial health.

Inspect your credit report for any mistakes

The first step is to check your credit report to learn exactly what it contains. You can do this by paying a small fee to a company like ‘Check My Credit File’ (https://www.mycreditfile.com.au). It’s not uncommon for oversights to be made on credit reports which can have a harmful impact 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 errors that can occur are:

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

If you uncover any mistakes, advise 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

A lot 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 smart idea to speak to all your lenders and ask them to automatically debit your bank account every month. Usually, your lenders would be more than happy to do this as posting paper invoices is time-consuming and expensive. By putting all your bills on autopilot, you can be sure 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 within your credit report which lenders will view favourably. As an example, if you are married, have been working with the same company 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, inform the credit reporting agency and ask that it be included.

Keep away from too many credit applications

Every time you apply for a line of credit, it is noted on your credit report. Naturally, too many applications for credit will have a negative impact on your credit report and the way in which lenders view your financial behaviours. It is crucial that you are sensible and selective when making an application for credit and only apply when you are optimistic it will be approved. At the same time, 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 tough to manage your debts when then you have lots of them. Forgetting just one debt repayment can become a default, which will stay on your credit report for a minimum of five years. Look at a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Generally, 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, get in contact with our friendly team at Bankruptcy Experts Alice Springs on 1300 795 575, or alternatively visit our website for additional information: www.bankruptcyexpertsalicesprings.com.au

 

By | 2018-07-29T23:42:07+00:00 June 21st, 2018|article, blog, brankrupt|0 Comments

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