Find out the ways through which you can repair your credit history

If you have had one or more financial misfortunes in recent times and now you have less than the desirable credit score, then you need to consider going for a credit repair. Credit scores of many Australians have dwindled in recent times because of the effect of the global recession and unfortunately for these people, their credit history will determine whether they get new credit loans and at what Interest rate such loans will be repaid.  Here are some ways you can repair your credit history.

Make sure any errors in your credit report are fixed

Your bad credit report might have resulted in the mistakes you made in the past but it will be unfair if you get penalized for the errors you didn’t commit. About 65% of credit reports in Australia have such errors and yours might be one of them. You can fix errors on your credit report by getting a comprehensive report on your credit information.

Upgrade your unsecured credit card if you make prompt payments

Try as much as possible to pay your full balance on monthly basis and apply for a regular bank credit card within 6-12 months. You can easily upgrade your unsecured card to a secured one if don’t miss out your monthly dues.

Do not close credit cards you have had in a long time

Closing a credit card you have been using a for a very long time can have a negative impact on the length of your Credit history. If you want to migrate from a card with a fee to a non-fee card, simply request for a switch but never close down the old card especially if its credit rating is good.

Make a budget and allocate a substantial part to pay off your debts monthly

You don’t have to use your credit card all the time; as a matter of fact it is very important that you pay your utilities and some other debts with cash. Your credit report will automatically fix itself when you promptly repay your debts on regular monthly basis.  You need to keep in mind that your total outstanding debt will constitute more than a third of your credit rating, therefore the earlier you repay such debts, the quicker you can fix your credit report.

Consider the opportunity of consolidating your debt through a fast loan. With these personal loans, you can merge your existing high interest debts into a single low interest loan, effectively making it easier to repay.

Make sure you keep some of your credit accounts opened

Don’t close more than one or two of your credit accounts within 6 months because a sudden display of some financial recklessness on your accounts shows how unstable you are in your finances. Make sure you keep one or two of your old credit accounts – your oldest accounts is one of the most prominent factors that determine your credit history rating. Paying your outstanding debts in full on monthly basis will help you escape from the payable late payment fees.

Be disciplined

You may want to keep your credit cards at home sometimes if you don’t want to be tempted to use it at stores. Make sure you stick to your monthly budget spending to avoid bad credit ratings.

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