Having a bad credit rating is more than just embarrassing. You can pay a lot more interest because you are seen as a “bad risk” or you may not even be offered credit at all.
If a credit provider has listed a default on your name, it can be hard to shift this without a lot of work or specialist help.
Having a debt or bankruptcy, or other information such as a debt agreement or court writ, recorded on your credit report, may hamper your chances of being approved for a loan or line of credit.
When a lender looks at your credit history, any payment defaults (missed payments) recorded on your credit file will make the loan unlikely – or at least push up the rate of interest which may be charged.
Follow these steps to help repair and potentially improve your credit file:
- Consider contacting your credit provider to negotiate paying off the debt.
- See if you can roll your debts into one consolidation loan in order to pay off your debts faster.
- If you can’t consolidate your debts, see whether you can pay off your highest interest loans first
- Seek professional advice, ideally from an independent debt solutions specialist
Under Australian law, once a debt has been paid, the lender must update the listing on your credit file. But the bad news is that a default payment can stay recorded on your credit file for five years and forms part of your credit history.
More and more people are becoming victim to identity-theft scams. Often the first time a person finds that their identity has been stolen is when they are rejected for a credit application, based on non-repayment of a loan they never had. Protect your identity by making sure you have installed software on computers, using “strong” passwords, shredding documents and being careful how you shop online.
Get Help To Fix Your Bad Credit Rating
Give us a call and talk with one of our independent, confidential Debt Solutions specialists here at Capital Debt Solutions. Together we will find the best solution and work with you and your creditors to get you back on track and rebuild your financial future.
Our Team – Understanding & Professional
When Experience Counts
The team at Capital Debt Solutions have decades of experience in dealing with creditors within the financial services industry. Most importantly, we’re independent so make sure you get the arrangement that’s best for YOU not the bank or credit card company.
Trusted and recommended by more than many Australians.