Tips to Clean Up Your Credit History
Has your credit history seen better days? Don't panic! We're here to give you the handy hints you need to boost your creditworthiness and improve your chances of getting that all-important cash injection.
Let's get started:
Firstly, get a copy of your credit report
You're entitled by law to get one free credit report every 12 months, or within 90 days of receiving a credit rejection. For a small fee you can also request a report at any other time.
The credit reporting bodies available in Australia are:
Get a credit card
Oddly, having no debt at all doesn't make you more creditworthy. Instead measured credit card use (and prompt on-time payments) is evidence of an ability to manage debt.
Already have a credit card? Makes sure you pay on time
Your credit card and loan — info is recorded on your report for two years, so make sure you have a reminder system in place to ensure you're never late with your repayments.
Or better yet, set up a direct debit to cover your minimum payment so you don't have to even think about it. Prompt repayments will go a long way to improving your score.
Use a variety of credit types
If you're able to manage several debts at once — say a car loan, a credit card, and a mortgage your credit score will certainly rise.
A great place to start could be with a debt consolidation loan. Not only will you be able to bring together all your debts in one, you'll be able to manage what you owe with one regular payment. This will improve your credit history no end and make your life a lot less stressful in the process. Apply for your debt consolidation loan today.