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Best Ways to Improve a Poor Credit Report

Whether we realise it or not, our credit report has a considerable impact on our lives. It’s kind of like our health; we don’t cherish good health until we lose it. Many 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 surprise to some, simply because even one missed payment that is reported by your lender can remain 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 creditors. In recent times, credit reports have been revamped to place greater focus on favourable history such as paying your bills on time, but overwhelmingly, credit reports are used by creditors to calculate your capability to repay debts by assessing your past behaviour.

When financial institutions review your credit report, you commonly either get a pass or fail so any default regardless of its severity can have a long-lasting effect on your financial opportunities for years to come. Even though finding solutions to repair a bad credit report can be tricky, there are a number of things you can do to boost it. Luckily, we’ve compiled a list of suggestions that you can try to improve your credit report and your overall financial health.

Review your credit report for any errors

The first step is to inspect your credit report to learn exactly what it features. You can do this by paying a small fee to a firm 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 an unfavourable effect on your financial capabilities. Read your credit report meticulously and dispute any mistakes that you discover to make sure your credit report appropriately emulates your financial history. Some standard errors that can occur are:

  •  Errors in personal details
  •  Wrongful defaults and judgements
  •  Old defaults and judgements
  •  Incorrect information relating to your credit history

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

Pay your bills on time

Individuals underestimate how valuable 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 get in touch with all your creditors and ask them to automatically debit your bank account each month. Generally, your creditors 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 sure 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 a number of details within your credit report which creditors will view favourably. For instance, if you are married, have been working with the same employer for over two years, or you are a homeowner, then this information will improve your credit report. Creditors usually view this information in a positive light and it can assist in future credit applications. If you discover 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 apply for a line of credit, it is mentioned on your credit report. Naturally, excessive applications for credit will have a harmful impact on your credit report and the way in which creditors view your financial behaviours. It is crucial that you are vigilant and selective when requesting credit and only apply when you are optimistic it will be approved. At the same time, if you recently had a credit application turned down, wait a respectable amount of time before applying again.

Take into consideration a debt consolidation loan

Certainly, it can be very tough to oversee 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 at least five years. Take into consideration a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Generally, 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 touch with our friendly team at Bankruptcy Experts Cassowary Coast on 1300 795 575, or alternatively visit our website for additional information: www.bankruptcyexpertscassowarycoast.com.au