By Daniel Walker (Guest Writer)
In Australia, a good credit score is important to be able to obtain finance, competitive interest rates, and financial opportunities. A bad credit score conversely can create difficulties in obtaining home loans, business loans and other forms of credit.
If you're looking to improve your credit score, there are a few easy steps you can take to help increase your score and nurture it, starting with a credit score check.
This article will guide you through essential actions. By following these steps, you'll be on your way to enhancing your creditworthiness and paving the path to a brighter financial future.
1. Free Credit Score Check
Obtain Your Free Credit Report from ALL Credit Reporting Bodies
Begin by requesting a free copy of your credit report from the below credit reporting bodies. You can access your report usually once per year for free. It provides a comprehensive overview of your credit history, including your credit accounts, payment history, defaults, and enquiries.
Equifax: www.mycreditfile.com.au
Illion: www.creditcheck.illion.com.au
Experian: www.experian.com.au/consumer/order-credit-report
2. Review Your Credit Report for Errors
Carefully examine each section of your credit report for any inaccuracies, discrepancies, or outdated information. Look out for incorrect personal details, unfamiliar accounts, incorrect payment statuses, or any signs of fraudulent activity. Highlight any items that seem incorrect or require further investigation.
3. Contact Lenders to Address Inaccurate Data
Once you've identified incorrect information on your credit report, you can contact the lenders or credit providers associated with those entries. Provide them with the relevant details, explaining the discrepancies and requesting that they rectify the errors. Be prepared to provide supporting documents or evidence to support your case.
4. Negotiate the Removal of Inaccurate Data
When contacting the lenders or credit providers, take the opportunity to negotiate the removal of any incorrect or unfair entries from your credit report. Explain the circumstances surrounding the disputed information and present your case for its removal. Lenders may be open to negotiation, especially if you have valid reasons and supporting evidence.
5. Stay Persistent and Follow Up
If you encounter resistance or delays in resolving inaccuracies, remain persistent. Keep detailed records of your communications, including dates, names, and reference numbers. Follow up with lenders regularly to ensure progress is being made in rectifying the errors.
6. Adopt Responsible Financial Habits
Beyond addressing items already listed on your report, it can be much easier to protect your credit score than repair it. Aim to pay your accounts and credit obligations on time but if you can’t – consider speaking to your credit provider to see if they provide you with alternative solutions. You can also use a finance broker to avoid excessive enquiries being left on your credit report.
7. Consider Engaging a Credit Repair Company
Repairing your credit score can also be quite challenging if you are not sure what you are looking for, so you can also consider engaging a Credit Repair company to help you work through your file. All credit repair companies must hold an Australian Credit Licence and be a member of the financial ombudsman (AFCA) – so before you do, make sure you are working with a credible credit repair company.
Summing up
To sum up, improving your credit score requires a proactive approach – By ordering your free credit report from the credit reporting bodies, thoroughly reviewing it for inaccuracies, and promptly contacting lenders to address errors, you can take control of your creditworthiness.
Remember to negotiate the removal of incorrect data and persistently follow up until the necessary corrections are made. Coupled with responsible financial habits, these actions will help you pave the way for a stronger credit score, opening financial doors to better financial opportunities and a more secure financial future.
Take charge of your credit score today and set yourself on the path to success.
More about the author.
Daniel Walker is a director of Bon Voyage Credit Repair with extensive experience in credit repair.
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The information and content contributed by guest writers are their own, and not of Fairlane Finance. Fairlane Finance and its associates are unable to warrant its accuracy or completeness, and you should not rely on this information without doing your own due diligence. Furthermore, the information on this website is general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from appropriate advisers. We disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.