Bad credit exposes the negative side of the credit card industry. Having bad credit can impact on your financial future, cutting down your chances to get credit cards, personal loans, and mortgages. When you agree to have your credit history verified, you run the risk of being refused because of a bad credit history.
What is Bad Credit?
Bad credit or bad credit rating is the language used to describe your credit value. Most people have a credit file detailing their personal details and other information such as:
• credit applications or enquiries
• current credit accounts
• overdue accounts or defaults (for up to 5 years)
If you have been credit active during the past seven years, will have a credit file.
This information on your credit file is not forever on your file but is changed and deleted after five years for all credit applications and defaults with any major credit infringements and bankruptcies deleted after seven years.
How do you get bad credit?
If you aren't particularly disciplined about paying bills on time, you may possibly end up with a default on your own credit file. Default credits can result from several ways such as by defaulted on previous loans, had assets like your car repossessed, having utilities cut off, exceeded credit card limits, or not paying bills on time.
Seeing as all this information will remain on your credit file for several years, you may be limited when you make applications.
Where do I get my credit rating?
Credit files can be very helpful for individuals planning to apply for a significant loan as it gives data of your credit history, and if you have good quality credit then this highly useful.
For copies of your Credit File you will need to contact Veda Advantage at www.mycreditfile.com.au. Depending on how urgently you need a copy of your credit file, there may be a fee involved.
Once delivered check all the recordings in your credit file to make sure there are no mistakes. If there are any mistakes on your credit file, this may be what has been affecting your credit rating.
In fact, it is highly recommended to read over your credit file per annum as this is what financial institutions will assess your financial feasibility on meaning you need to make sure that all information is correct.
How do you fix errors on your credit report
If there happen to be mistakes or errors you must contact the company who made that entry and ask them to correct the admission. There may be accounts that are outstanding or even ones that have been fully paid out but still show as outstanding.
Bear in mind that default entries remain on your file for 5 years. If you do find a mistake on your credit file, report them immediately. This will be investigated by the credit reporting company. These investigation can take time, but make regular checkups to see how it is progressing.
Tips on keeping a good credit file
Maintaining a good credit file doesn't have to be difficult. You can avoid a bad credit file by:
• Paying all bills on time. On the chance that you don't think you'll be able to make a payment, contact the company and advise them and give an approximate time as to when you will be paying.
• Appraise your credit file regularly. Ensure all details in your credit file are accurate and check for fraudulent entries. If there are accounts you don't recognise, investigate the accounts to ensure that your identity hasn't been stolen.
A clear credit file doesn't guarantee approval for a loan or credit card. Most companies will have their own criteria that they use in conjunction with a credit file. Request for the specific reason that you were declined.
Finding it hard to make your credit card repayments?
If you are having issues repaying all your credit cards, there are a number of options designed to assist you consolidate debt and creating a way to pay off your credit card debt
One popular method is a balance transfer credit card. A balance transfer involves transferring the balance owing on one or more credit cards to a new credit card. There are a number of special promotions and deals on the market on balance transfers. These deals may include an introductory period where low interest or even zero interest is offered.
Other Money Saving Tips
There are great money savings tips and tricks out there that can help you to save and meet every credit repayment.
So if you suspect you have bad credit or have been declined a credit card or loan, check out your credit file and find out what the problem is. Credit ratings are the groundwork for your success in gaining approval for most applications, both personal and business. Ensure that your credit rating is working for you.
