June 21, 2018 Comments Closed

Best Ways to Improve a Poor Credit Report

Posted by:admin onJune 21, 2018

Whether we realise it or not, our credit report has a meaningful impact on our lives. It’s sort of like our health; we don’t cherish good health until we lose it. Many individuals don’t even know they have a bad credit report until they apply for a personal line of credit and it’s disapproved. It can come as quite a surprise to some, since even one missed payment that is disclosed by your lender can stay 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 lenders. In recent times, credit reports have been remodelled to place greater emphasis on favourable history such as paying your bills on time, but overwhelmingly, credit reports are used by financial institutions to check your capability to repay debts by assessing your past behaviour.

When lenders 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 prospects for years to follow. While finding solutions to repair a poor credit report can be complicated, there are a number of things you can do to boost it. The good news is, we’ve compiled a list of suggestions that you can try to improve your credit report and your general financial health.

Inspect your credit report for any oversights

The first step is to inspect 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 unusual for errors to be made on credit reports which can have a damaging influence on your financial abilities. Read your credit report meticulously and dispute any oversights that you discover to ensure your credit report accurately mirrors your financial history. Some standard errors that can occur are:

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

If you unveil any oversights, inform 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

Individuals underestimate how crucial it is to pay your bills on time. Occasionally, people can be forgetful simply because they have too many bills to pay, so it’s a wise idea to speak to all your creditors and ask them to automatically debit your bank account each month. Normally, your creditors would be more than happy to do this as sending 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 impact on your credit report

Add extra information to your credit report

There are particular details throughout your credit report which lenders will view favourably. For example, if you are married, have been employed by the same company for more than two years, or you are a property owner, then this information will strengthen your credit report. Creditors commonly view this information in a positive light and it can assist in future credit applications. If you uncover that this sort of information is missing from your credit report, inform the credit reporting agency and ask that it be provided.

Keep away from excessive credit applications

Every time you make an application for a line of credit, it is mentioned on your credit report. Clearly, 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 imperative that you are sensible and selective when making an application for credit and only apply when you are confident it will be approved. Moreover, if you recently had a credit application declined, wait a decent amount of time before applying again.

Look at a debt consolidation loan

Certainly, it can be very difficult 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 a minimum of five years. Think about a single debt consolidation loan which will accumulate all your debts into one, single, monthly repayment. Typically, 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 touch with our friendly team at Bankruptcy Experts Mount Isa on 1300 795 575, or alternatively visit our website for additional information: www.bankruptcyexpertsmountisa.com.au

 

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