You want that new car. That new house. You may even want to have children or start a business. It can become frustrating when you see friends and family are flying ahead while you’re feeling stuck and left behind.
To move forward, you may have tried taking out a home loan, personal loan or applied for a new credit card, but you just keep getting knocked back.
If you're wondering why life seems to be pulling away, it could be a bad credit rating.
Applying for a loan when you have a bad credit rating is a challenge. And bad credit loans can be even more costly when you are already in debt.
Rather than take out another loan, it may be better to find a way to manage your existing debts, make regular payments and improve your bad credit rating.
If you’ve got a bad credit rating, it’s likely that you’ve got too many overdue debts. These overdue debts are recorded as ‘payment defaults’ on your credit report.
Before creditors lend you money or give you a new credit card, they double-check your credit report first. This is to make sure you can pay back what you owe.
There are a lot of common reasons why you might be unable to pay your debts. These reasons may not necessarily be poor money management, overspending or overborrowing.
Sometimes intense life events occur suddenly, and you can’t control them.
There’s no need to feel embarrassed or ashamed.
If you’re in a hurry to take out a loan, here’s the truth about fixing a bad credit rating: there are no shortcuts to repairing bad credit.
The only way to fix your credit report is to get your finances under control so you don’t fall behind in your payments ever again.
Any default stays on your credit report for five years. Paying off your debts mean the status of the debt is updated to ‘paid’. But the defaults still hang around as part of your credit history.
We want to help you develop a good credit history through on-time payments, so you can fix your bad credit rating.
We’re keen to get you to a financial position where you can take out loans and move your life forward.
All you need to do is meet with us. A consultation session with us is completely FREE of charge.
If you want to check your credit report, you can request a FREE copy from any of these reporting agencies.
● CheckYourCredit.com.au (Illion, formerly Dun and Bradstreet)
● Experian Credit Report
● Tasmanian Collection Service
Be sure to check your credit report on a regular basis to make sure there aren’t any errors in it.
If there are loans or payment defaults in your credit report you know nothing about, it’s possible someone has stolen your identity to take out those loans.
In the case your identity has been stolen or if defaults have been incorrectly added to your credit report, we can inform your creditor and reporting agency for you.
We can also escalate errors to the appropriate ombudsman.
In worst-case scenarios, you’ll have a bad credit report because you arranged a formal debt agreement or filed for bankruptcy sometime in the past.
Formal debt agreements and bankruptcies aren’t taken lightly and are looked upon poorly by creditors.
Another reason you have bad credit is that you’ve had to make an appearance in court to settle a debt. This appearance and the court’s judgement will be listed in your credit file.
If you need help resolving these situations, give us a call on 1300 300 922.