Wednesday, 10 May 2023

Part 2: So, you have bad credit, now what?

If you recognise some of the signs you may have bad credit it’s time to take control and get your finances back on track. It’s never too late to repair your credit history and build your credit score and doing so can help you achieve important life goals. You simply need to put a plan in place and start taking concrete action.

 

Get a free copy of your credit report

Knowledge is power. Knowing what’s on your credit report lets you proactively address any issues. Ask us for a free copy of your credit report. This will include your current credit score and a detailed explanation of the information on your report. If there is a problem, we can help you put together a plan to help remove defaults (black marks) and repair your credit rating.

 

Fix any mistakes

Although a credit default listing usually remains on your credit report for five years, you may be able to have it removed faster if you can demonstrate that the information isn’t correct. It is your legal right to contest any information that you think is inaccurate or unfair. You can do this either by yourself or enlist an expert to help you. Talk to us anytime about our credit restoration solutions.

 

Add positive information

Just as negative listings damage your credit score so positive information can help. Among the things that can help improve your credit score are a long-term, stable residential address; meeting your repayment commitments reliably; ongoing employment (two years or more is ideal); and being approved for finances such as a car loan, home loan or credit cards.

 

Get on top of your debts

If you do have a lot of outstanding debts, particularly debt defaults, then it’s important to improve this situation. You might want to consider options to put your debt into one manageable repayment, for example, a debt consolidation loan or debt agreement may help, but it’s important to understand the pros and cons of both Having a single monthly payment may make it easier to stay on top of things and you may be able to get a better interest rate too.

 

Always, always pay your bills on time

Paying your bills on time and not having defaults is essential to improving your credit rating. Prioritise bill payment and make it as easy for yourself as possible. Ideally, set up an automatic direct debit to pay bills on the date they are due. If you find you can’t pay a bill, be sure to speak to the creditor to make arrangements before the bill is 60 days past due. This way, it won’t end up as a black mark on your credit report. Most debtors will offer you some leeway on late payments if you contact them to make arrangements in advance.

There’s no time like the present to repair problems with your credit score. To find out exactly what’s in your credit history, get a free copy of your credit report today.