A poor credit score does not define you. It simply means that you overused your credit card a few times or forgot to pay the instalment promptly. None of this indicates your value as a person.
That said, it can still create a hitch in your well-thought-out plans, whether it is getting a mortgage or availing of a personal loan. Although, as it turns out, you can still get a personal loan with bad credit.
But you know, what might be better?
Carefully track your credit score and improve it along the way! And it isn’t as challenging as you think it is.
And no, it does not include reaching out to a company that claims to wipe out your credit report. Because the information is accurate, it is improbable that anyone can clear your past slate.
Are There Credit Errors You Can Correct for Free?
Well, some errors in your credit report that you can quickly fix are:
Error on the Part of Credit Reporting Agency
Sometimes a credit reporting agency might create a mistake on your report.
Some of these errors might pertain to your name, address, date of birth. Additionally, the company might have listed your debt twice or stated the wrong amount of debt.
Reach out to the credit reporting agency. They might fix it without any trouble or guide you in the right direction to help you get the information fixed.
Errors on the Part of the Credit Provider
A credit provider may seemingly report wrong information sometimes. For example, here are some of the mistakes that a credit provider may make –
- List incorrect payment of $150 or more due for over 60 days
- Forget to notify about the unpaid debt
- Create a wrong account as a result of identity theft or mistake you for an incorrect account
- State an overdue debt that you might be in talks about
- Forget to inform you about the change in contract
- Forget stating the difference in payment plans as decided priorly
Contact the credit provider. If the credit provider agrees to their mistake, they may reach out to a credit reporting agency to fix your credit report.
If they don’t seem to agree, you can reach out to the Australian Financial Complaints Authority for dispute resolution. Or meet a financial counsellor to help you.
Improving your Credit Score
To get a personal loan with bad credit is still possible. Although, you might need to pay higher interest than regular loans.
Another way is to fix your credit score all by yourself. So next time, your loan might get approved without a hiccup!
Just employ a couple of these ways, and you can be at the top of your credit report!
- Consider lowering your credit card limit.
- Consider paying your credit card on time every month. You can either pay in full or fulfil the minimum repayment requirement.
- Consider paying your mortgage or rent well within time.
- Consider paying your essential bills like water, gas, electricity in due time.
- Check out by limiting the number of applications you make for credit.
Final Words
Repairing your credit score isn’t rocket science. Just a little check-in with yourself every month and a little financial care for your record will be all.
So, keep a checklist and be timely with your credit repayments. Then watch as your credit score begins to improve for the better!