Bad credit can rob you of many different opportunities. That is why, if you have a bad credit score, you must start acting fast to increase your credit score.
The question, however, is how to repair bad credit in Australia.
We will cover 6 different tips that can help you repair bad credit.
1. Get a free credit report
Without the latest credit report, you wouldn’t know where to start when repairing credit. Agencies like Equifax, Experian, and Illion are the credit reporting agencies that monitor your financial activity and provide a free credit report every 90 days. Get a credit report and go through it carefully.
2. Spot and get any errors fixed
You might often spot errors in the credit report lowering your credit score. Examples of such errors include:
- Non-reflection of payment of dues
- No report of the closure of loans
- Erroneous application of new loans
Once you notice any such errors, send an online application and email the credit reporting agency with all relevant records for correction. This alone will increase your credit score significantly.
3. Do not apply for credit
If your credit score is bad, you won’t be able to get new loans or credit cards. The likelihood of getting rejected is high. Even if you get rejected, the score will drop by a few points on each new application. That is why it is best not to apply for new loans, credit cards etc.
4. Ensure timely payments
One of the ways to at least prevent lowering your score further is to make timely payments. Ensure timely payment for all your financial obligations:
- Mortgage payments
- Rent payments
- Utility bill payments
- Credit card bills
Timely payments will improve the percentage of payments that have been successfully paid on time. After a few years, …