Things to remember about repairing your credit
Everybody who has previously applied for credit will have a credit record. Our credit report affects our ability to apply for credit and may even prevent you from being approved for any form of credit. Many people have clean records so applying for further credit should not be a problem, but others have bad credit histories which affect them negatively. As the burden of debt is becoming increasingly widespread across Australia each year the demand for credit repair services is growing. Unfortunately, with extremely bad credit problems there is nothing you can do to accelerate your credit repair. The keys to credit repair are patience and prevention.
Managed correctly, credit repair will occur with time. However, in the interim you can check your credit report to ensure its accuracy. Should any errors appear on your report it is possible to dispute them and even have them removed.
Challenging comments on your credit report
It is possible to challenge any listing that appears on your credit report if you believe that it is inaccurate. If the remarks on your credit report are found to be false then they can be removed from your record. This system works in the consumer’s favour as listings on your credit report that cannot be substantiated must be removed.
If negative information appears on your credit report that is factual, only in time will you see this information removed. Negative information appearing on your credit report has the ability to significantly impact your ability to apply for credit. This information is removed from your credit report when it expires, for example details of bankruptcy will be removed from your report 7 years from the date of your bankruptcy. In the long term, the only way to prevent yourself from having a negative credit report is to act in a more responsible way and take action to remedy your financial health.
Time heals, but there is more to financial health than that
Credit repair requires time but for long term results it also requires you to avoid poor financial management. By doing this you can prevent yourself from ever having a negative credit history again. It is important that you avoid any activity that will make a money lender contact a credit reporting agency. This includes:
- Bankruptcy
- Credit Card and Loan Defaults
- Late Utility Bill Payments
- Court Judgments
In the long run these actions can seriously damage your ability to apply for mortgages, loans and credit cards in the future. In worst case scenarios you can be deemed a high credit risk, a label that can prevent you from qualifying for a staggering 95% of the financial products available in the marketplace. This includes the products that have the lowest interest rates and the most favourable terms.
The more of a risk you are to lenders, the higher the interest rates available to you will be. Consequently bad financial habits often lead to a cycle of debt that seems inescapable. The only way to break this cycle is to develop good financial practices.
Develop good financial practises
Developing good financial habits is the only way you can be assured that you will no longer be accumulating negative listings on your credit report. Some simple ways of developing good financial practices are to:
- Start budgeting
- Spend less than you earn
- Cut up your unused, high interest credit cards
- Switch your expensive debt into cheaper credit facilities
- Allocate your savings to debt repayment
These are just a few things that can lead to better management of your finances. For example by simply spending less than you earn you will always have money to allocate to debt if necessary and to pay any unforeseen bills. The key to keeping a clean credit report is to stay financially healthy. If you do this there will be no need for credit repair. As with many things prevention is better than cure.
If you would like to find out more about how you can repair your credit record then fill in the following form or call Debt Relief on 1300 658 662 and our staff will assist you in finding the most effective way to repair your credit and reduce your debt.
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