How to Fix Bad Credit

Bad credit can seriously affect your ability to borrow. It can even cause issues when getting simple things such as a phone plan or connecting utilities. Below are steps you can take to improve your credit history.
No impact on your credit score

While traditional lenders such as banks are likely to reject an application with bad credit; Australian Lending Centre’s approval criteria is more lenient, so we can look past your credit history.

However, if you would rather apply with a bank or if you’d simply like to clean your credit file up then there are a number of things you can do to fix bad credit

Heavy debt can be solved with debt consolidation

Here are some ways to fix bad credit

View Your Credit Report

First things first, it’s important to identify where the problems lie. This can be done by first checking your credit score. This can usually be done for free and will tell you the numerical value of your score between 1 and 1,200 depending on the credit reporting body.

Next it’s important to dig deeper and understand what has caused negative movement, if there is any. You can also check your credit file online, otherwise you can call us and ask for a credit health check, where we can talk you through your file in detail.

From here, we can clearly identify what needs to be done in order to fix bad credit.

View Your Credit Report to Correct Any Mistakes

How to repair bad credit

If you have any of the following items on your credit file, then there is a chance that a credit repair professional could potentially clear these for you.

  • Defaults
  • Judgements
  • Credit enquiries
  • Black marks

Credit repair professionals are trained at disputing negative listings and getting them removed from your file. Some examples of instances where professional could fix bad credit are:

  • Filing issue – you might have moved house and therefore missed any paperwork requesting final warnings.
  • Bad practise – in some cases, a black mark may have been stamped on your file without appropriate warning.
  • Incorrectly assigned – the credit reporting agency may have placed a negative listing under the wrong name
  • Compassionate grounds – serious life factors could have lead to you neglecting repayments in the past.

Pay Off Debt – Especially Those on Your Credit Report

A bad credit history can’t be repaired if you are consistently dishonouring on your current debt commitments.

If you are struggling to pay off your debt, talk to the specialists at Australian Lending Centre. You could take advantage of a Debt Agreement or Informal Debt Arrangement where a reduced repayment is negotiated with your creditors so you can pay off your debts over time, among other benefits.

Alternatively, we can discuss your options if you are looking to instead obtain a bad credit loan.

Pay Off Your Debts – Especially Those Included on Your Credit Report
Cut up your credit cards

Don't rely on High Interest Credit Cards and Store Cards

Credit cards can be a great way to build your credit score, if used responsibly (keep the balance as low as possible, avoid making minimal repayments and don’t miss repayments). However, they can also be one of the quickest ways to get a bad credit rating.

When you miss a few months of payment, your credit card provider can place black marks on your credit report which can take years to be removed.

Credit card debt is one of the most common ways to get into financial difficulty. They are relatively easy to obtain and many people rely on credit cards in times of financial stress, when they don’t have sufficient cash available to finance their desired lifestyle. Even when credit cards are paid off, it is really easy to reach their credit limit again. 

To prevent another infringement or black mark leading to a bad credit rating, try to not abuse your credit cards and do not use them without a clear direction of how you will repay them.

What to Do To fix a bad credit rating?

Bad credit history will usually mean that traditional lenders see you as a credit risk and therefore, it will be more difficult to obtain finance. However, the Australian Lending Centre can provide support to those seeking bad credit loans and find the most competitive interest rate with the best terms of repayment available. We can even discuss how to fix bad credit.

Our Bad Credit Score Loans

For more information on bad credit loans, view our bad credit loans page or contact the Australian Lending Centre today.

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