Best Ways to Repair a Poor Credit Report

Bankruptcy Port Macquarie

Regardless if we realise it or not, our credit report has a significant effect on our lives. It’s sort of like our health; we don’t appreciate good health until we lose it. Lots of people don’t even find out they have a poor credit report until they apply for a personal line of credit and it’s disapproved. It can come as quite a surprise to some, given that even one missed payment that is reported 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 record that specifies information about your financial history with financial institutions. Recently, credit reports have been remodelled to place greater attention on favourable history like paying your bills on time, but overwhelmingly, credit reports are used by lenders to gauge your ability to repay debts by assessing your past behaviour.

When creditors check your credit report, you usually either get a pass or fail so any default irrespective of its severity can have a long-lasting effect on your financial opportunities for years to come. Whilst finding solutions to boost a poor credit report can be difficult, there are various things you can do to improve it. Luckily, we’ve compiled a list of ideas that you can try to enhance your credit report and your overall financial health.

Examine your credit report for any errors

The first step is to inspect your credit report to find exactly what it contains. 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 uncommon for errors to be made on credit reports which can have a damaging impact on your financial capabilities. Read your credit report carefully and dispute any oversights that you find to make sure your credit report accurately mirrors your financial history. Some general mistakes that can occur are:

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

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

Pay your bills on time

People underestimate how vital it is to pay your bills on time. Sometimes, individuals can be forgetful considering that they have too many bills to pay, so it’s an intelligent idea to speak to all your creditors and ask them to automatically debit your bank account every month. Typically, your lenders would be more than happy to do this as sending paper invoices is time-consuming and costly. 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 effect on your credit report

Add additional information to your credit report

There are specific details within your credit report which lenders will view favourably. For example, if you are married, have been working for the same company for over two years, or you are a property owner, then this information will boost your credit report. Lenders usually view this information in a positive light and it can help you in future credit applications. If you see that this type of information is missing from your credit report, alert the credit reporting agency and ask that it be added.

Avoid too many credit applications

Every time you request a line of credit, it is documented on your credit report. Naturally, excessive applications for credit will have a negative effect on your credit report and the way in which creditors view your financial behaviours. It is imperative that you are reasonable and selective when requesting credit and only apply when you are confident it will be accepted. Additionally, if you recently had a credit application declined, wait a decent amount of time before applying again.

Think about a debt consolidation loan

Certainly, it can be very complicated to control your debts when then you have lots of them. Neglecting just one debt repayment can become a default, which will remain on your credit report for at least 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 fairly 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, speak to our friendly team at Bankruptcy Experts Port Macquarie on 1300 795 575, or alternatively visit our website for further information: www.bankruptcyexpertsportmacquarie.com.au

 

By | 2018-06-29T05:57:27+00:00 June 20th, 2018|Bankrupt, blog|0 Comments

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