Your credit is the most important factor a potential lender views when considering you for any
type of loan or credit, and it can have a direct effect on your approval for the loan.
involves removing contestable listings and
clearing bad debts from your credit report. Your credit report contains a complete history
of your financial life. It is important to safeguard your credit report and to take steps
toward improving it if it paints a less than favorable picture of you.
A credit report contains such details as addresses, past and current employment, defaults,
clear-outs, bankruptcies, credit applications, judgments, and linked or crossed files. Simple
actions like applying for a new credit card, signing a mobile phone contract or signing up for
an interest-free offer at a store all appear on your credit report. All of these actions can
also have serious effects on your credit report.
According to Veda Advantage, of the 14.7 million Australian credit files, over 3.47 million
contain negative listings. Many negative listings are inaccurate, and these listings may be
contested in order to repair an individual's credit. In fact, experts believe that as many as
40% of credit reports contain errors. However, most people know little about their credit
report, and many have never even seen it. They do not understand that they have a right to
access this information, and that they can also work to contest and remove negative
Erroneous and disputable information on credit reports may include overdue accounts, judgments,
multiple identities, and much more. By removing this negative and incorrect information, you
can receive approval for more and better credit and loans as well reduce your interest rates,
fees, and repayments. All of these can save you thousands of dollars. Therefore, if you have a
bad credit report, it is worth it to attempt credit repair.
The first step in credit repair is to obtain a copy of your credit report. You should examine
it for accuracy, noting any unfamiliar or incorrect information. Verify that the information is
indeed incorrect, and then take steps to challenge it. This requires contacting the credit
bureaus as well the various parties involved in contested listings. You will have to provide
evidence that the listings are incorrect. This can be a long process with specific forms and
procedures to follow. A good credit repair agency can assist you a great deal during this
Once your credit report is accurate, bad debts may still remain in it. Credit repair agencies,
debt consolidation companies, and providers of financial counseling can all assist you in
continuing to repair your credit. By systematically organizing your repayments, developing a
repayment schedule, and steadily following it over a long period of time, you can eventually
pay back all you owe plus any accumulated interest. The repayment of your debts will be noted
on your credit report. You can then establish a new and improved credit history through smart
money management and the prompt payment of bills.