5 Easy Steps to Rebuild Your Credit Score
Removing negative information from a credit report is not an easy task, but it is not impossible either. The best way to start with it is to continue monitoring your credit report as well as your score. The sooner you find out about identity theft or credit report issues, the easier it will be for you to solve them.
Having unfavorable score will close many opportunities for you. It will not be easy for you to qualify for loans or credit cards and you might have to settle for less-than-required amount and terms and you may have to pay a comparatively higher interest rates and higher insurance premiums. So, when your credit score is poor it is important that you work to improve it. Whether you have missed payments, going through a bankruptcy or made wrong decisions with your finances, rebuilding your credit score does not have to be difficult. Creating a plan and maintaining patience will help you rebuild your credit eventually. You can follow the five steps below to repair credit yourself.
Get Free Credit Report From All Three Credit Bureaus
It is important to review your credit report in detail from all three credit reporting agencies. Reports can be obtained for free of charges. When reviewing the credit report keep track of all the information so that you can figure out incorrect data. As credit score is based on the data collected from the credit bureaus, it is important to ensure that the data that Experian, Equifax and TransUnion holds are correct.
If You Find An Error With Your Existing Account Report About It
As soon as you have found out that the information in your credit score is not correct you should immediately reach out for the financial institution that has reported your information. For instance, if you have recognized your credit card, but do not recognize the last payments made, speak with the credit card company. Credit card companies and banks can often fix such issues and directly update the credit bureaus about it. Make sure you keep a good paper trail of all the emails and other communications made with the financial service companies. If the financial institution or bank is unable to resolve the issue, further steps should be taken. Having proper paper trail will make it easy to take the necessary steps.
Find Accounts That Are Not Yours
You could be a victim of identity theft if you have found opened account in your name that you do not recognize. If you have found any such account then you should immediately start managing identity theft. You can log into the government website that offers such services and enables you to report about identity theft and obtain a recovery plan. As per such plans you will be instructed to freeze your credit and file about the dispute with the credit bureaus.
Use The Advantage Of The ACCC
There are other options available if you are unable to resolve the issue with your financial institution, you do have another option. You can complain to the Australian Competition and Consumer Commission. Once you have submitted your complaint online your situation will be looked upon. Maintaining paper trail is very important in this step. Always share as much as information as possible with the ACCC so that they can provide you the most helpful services. ACCC charges no fee for filing a complaint.
Try Building Your Credit The Old-Fashioned Way
For a good credit status, you should have positive information reported into your credit file every month. The simplest way to do so is with the help of a credit card. Always try to keep your utilization of the credit card low and ensure every month you pay the statement balance on time and in full.
If you are finding it difficult to get a credit card then you can consider applying for a secured credit card. For such cards you will have to provide a deposit and you will be provided with a credit limit depending on the security deposit you have made. When you choose such secured credit card it will be reported to the credit bureau and it will help you rebuild your credit score.