Bad credit is like a bad smell that hangs around. It causes significant discomfort and reduces your quality of life, especially when you to try and get a loan.Your credit score is critical asmost lending institution use this as a tool for measuring the likelihood that you will pay your debt back and on time, they will use your score to determine if they will provide you with a loan or not. More interestingly, your credit score will also dictate what interest rate the lending institution will give to you as they try to cover their risks if you stop paying part-way through. A poor credit score is the deciding factor between the cold-shoulderand good mortgage rate. Undertaking credit repair can improve your chances of being given a loan, and being given a good deal.
Despite claims to the contrary, credit repair is possible. In fact, there are various steps you can take to rebuild yourcredit history. In case of a huge debt, then the first thing youcan do is to contact yourcredit provider to negotiate on how you can pay off your debts, a number of professional companies will be able to negotiate this on your behalf. A number of people choose to consolidate their debt into one easy repayment, allowing them to pay of their loans faster. Make sure to seek financial advice before consolidating your debt to ensure you won’t be placing yourself in worse situation.
Make sure you are checking your credit score at least once a year, despite all of the checks and balances in place, mistakes do happen, and regularly checking your score will help you pick this up. If this does occur to you, make sure contact the complainant, be it a bill provider or financial institution, ask for them to remove this error. If they will not remove this listing contact the Financial Service Ombudsman within your state and make an official complaint to them. This should have the issue corrected for you.
Identity-theft is another big issue to be aware of when it comes to your credit score. When applying for loans or other forms of finance you may be turned down for credit due to debts you have not heard of. It is importantyou access a copy of your credit file straight away in order to see what debts have been put against you name. You should act immediately and:
- Check your bank statements for unauthorized transactions
- Cancel your credit cards
- Contact your bank
- Change your email
- Change all your passwords
- File a report with police
- Place a ban on your credit report
When trying to repair one’s credit, it is important to check get your free copy of your report every 12 months. This enables you todetect and correct any possible mistakes in your credit score. It is not possible to remove all forms bad credit from your file, any company who makes this claim is falsely advertising themselves. All professional debt agreement company’s act within the code of conduct to ensure they are handling your finances and your credit score ethically.