7 actions you can take to repair your credit score

If you’ve been clumsy with managing your finances, or you’ve been too short on cash to pay a bill, you may have unwittingly let a pesky default or two creep into your life and onto your credit file. If this has happened to you recently, you might be wondering how to perform a credit repair to avoid future disaster, such as a permanently damaged credit rating or worse, that ‘B’ word – yes, bankruptcy. Ouch.

If you are looking to secure a loan for a new car, dream home or that snazzy new modular couch you’ve had your eye on, you’ll need a credit report. But, your dream of owning the latest Mitsubishi Triton or impressing your friends with a modular couch, may be hampered by a bad debt or bankruptcy.

If this happens to you, many banks and finance companies cringe at the thought of offering you a line of credit. You may even find it difficult to get simple things ticked off your list, such as opening a mobile phone or electricity account.

Perceptions related to a bad credit score

Many people think that getting a blemish on your credit record is the fastest way to living a little less happily; period. For many modern consumers, the thought of having bad credit can seem like a massive blow in terms of living a full and enjoyable life. The general perception is that a bad credit rating can drastically narrow a person’s options. Further, if you are in a relationship, one partner with a bad credit score can put pressure on a couple or a family’s finances.

There’s good news

But don’t worry. If you’ve been afflicted by the bad-debt-doldrums, don’t fret yet. There are actually a few simple steps you can take today, that can help restore your credit record.

Take action

While this task may not be on your list of ‘fun ways to spend your day,’ performing a credit repair might be the best few hours you spend this year.  Think of this task like one of those ‘two-minute’ jobs like changing the oil in your car. These to-dos are annoying, but completely necessary if you’d like to keep your car for future trips and keep yourself safe for road trips and running errands.

The same goes for credit. Give your credit-score a once-over now and your bank balance will thank you in years to come.  After a credit repair you’ll feel better. While you won’t skip around like you won the lottery, you will sleep better at night in the warm bliss that is ‘a better credit rating.’

How can i repair my credit history? Here are a number of steps you can take to get bad credit under control

Step one | Take action and contact a credit provider

There’s no time like today to put a credit repair into action. Research online credit providers, make a call or fill out a contact form. Start by asking the necessary questions. There are a numerous reputable credit providers who exist to serve you, and their singular goal is to help you shake off those bad debt woes.

Step 2 | Think about consolidating debts

Wrapping up all your debts into one neat bundle, will certainly bring you closer to the goal of becoming debt free. Not only will consolidating reduce the average interest rate across all debts, but also financial management will be easier.  For example, there will be less of a chance that a direct debit might default as you won’t have to watch what’s coming in and going out as often.

Step 3 |  Pay off high interest-bearing debts off first

Debts such as credit cards, which bear the highest interest, should always be paid off first. If you can’t pay the credit card off immediately, at the very least switch to a 0% interest credit card to reduce the amount you’ll be paying monthly. You can use the money you save to pay the card off faster.

Step 4 | Seek professional assistance

We are all busy in life and outsourcing problems to professionals is becoming more and more common. If you have an issue with debt, it is likely that managing finances is a weakness. Luckily, we live in an era where help is always at hand. Always consider seeking professional advice from financial services. Many such services offer free tips and advice and have no-obligation policies.

Step 5 | Check for errors

Vendors and databases make mistakes. Be sure to thoroughly check records, to make sure that your bad credit rating has not been recorded in error. Reputable credit providers can engage mediators to help you successfully resolve any information on your file, which may be incorrect. This is also important in terms of scams related to identity theft. If you believe you may have been a victim of this issue learn more about the steps you can take to reclaim your reputation or to prevent this potential threat from happening.

Step 6 | Consider a bad credit loan

Bad credit loans are offered by companies for the purpose of giving people with bad credit a chance to get a loan despite this misfortune. For example, First Rate Car Loans offers a Bad Credit Car Loan and specialize in presenting your application to our panel of lenders in the best possible light, giving you the best chance to be approved based on your personal circumstances and lending criteria. Use the quick online quoting calculator to see how easy it is to get a loan despite poor credit history.

Step 7 | Check your credit report online

There are many online reporting systems for securing your credit report and checking its status. Be sure to check these out. Such companies can also let you know when information is recorded on your credit report, which is important if, for example, a scammer might be using your name to apply for credit.

If you are looking to purchase a car in the near future, and you are worried about a bad credit history, be sure to contact First Rate Car Loans for assistance.

Important note:

In Australia, a blemish on your credit rating will stay for five years. If you’ve paid off the debt, this will also be recorded. Many lenders, especially those who deal with bad credit loan companies, will often overlook such discrepancies.

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