How To Repair Your Credit Rating In Australia

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“Jacaranda Finance is a lender. We do not offer financial advice. Consider seeking independent legal, financial, taxation or other advice to check how the information and ideas presented on this website relate to your unique circumstances.”

Are you worried that poor credit is getting in the way of a loan? Want to repair your credit score but unsure how to do it? Jacaranda Finance has done the hard work for you. At Jacaranda, we understand that bad credit can have a long-lasting impact on your ability to get a home loan, personal loan or even a car loan. So, we’ve done some digging to find out what a bad credit score is and how it could affect you.

If you’ve been googling ‘how to repair my credit rating Australia’ then we suggest you keep reading! Jacaranda has everything you need to know about credit repair. We could even help you tackle credit card debt!

What Is A Credit Score?

So, before we go any further, let’s clarify what a credit score actually is. A credit score or credit rating is a number that is given based on a level analysis of a person’s credit file. This essentially represents the creditworthiness of an individual. A credit score is based off a credit report. The information used to conduct a credit report is sourced from a credit bureau. To put it simply, your credit score tells a lender how trustworthy you are as a borrower. It’s important to remember that the higher the number the better your credit score is. If you apply to find out what your credit rating is through a credit agency like Equifax, you will be given a numerical value between 0 and 1,200. This number will essentially summarise your entire credit report and allows lenders to assess whether or not it is worth lending to you.

What Can Affect Your Credit Score?

Many people are unaware of what factors can influence their credit score. The truth is there are a number of different factors that play a part in determining your credit score. Here’s the rundown…

Good For CreditBad For Credit
  • Paying bills on time
  • Ensuring that outstanding loans and credit card debt are paid
  • Not continuously applying for a new credit card or loans
  • Having a low balance on your credit card
  • Making repayments on time every
  • Keeping a low balance on your credit card
  • Keeping ‘good’ credit accounts where you have continuously made repayments
  • Having an available credit limit that is higher than your usual credit balance
  • Applying for too many credit cards or loans
  • Applying and being rejected for credit cards or loans
  • Failing to make repayments on a loan or making late payments
  • Getting lots of multiple balance credit cards one after another
  • Failing to repay a balance transfer credit card by the end of the promotional interest rate period

Will Checking My Credit Score Affect My Credit Rating?

For some reason, there is a long-standing myth that checking your credit rating has a negative effect and will somehow leave a mark against your name. This is completely untrue. You can check your credit rating without any impact being made on your credit score. In fact, checking your credit score is a good way to stay on top of your creditworthiness. You can actually check your credit score once a year for free and we recommend you do so. Remember, staying on top of your credit is a good idea if you are planning on applying for a loan in the near future.

How To Repair Bad Credit

Wondering what you could do to get on top of bad credit? Getting on the right track with your credit score is an important goal for anyone looking to be eligible for a home loan, personal loan or even a car loan. Repairing your credit score definitely doesn’t happen overnight, however, there are things you can do now to make a change. So, if you’ve been googling ‘credit repair loan’, ‘business credit repair’, ‘credit repair loans’, ‘business credit repair companies’ then you might want to keep reading.

Check Your Credit Score

First and foremost, we suggest you get a copy of your credit score. It is important to understand what you are dealing with and what areas you can improve on. Remember, everyone is eligible for one free credit check per year and it is good to check your credit rating regularly to ensure there are no incorrect listings.

Fix Incorrect Listings

We get it, sometimes mistakes and defaults are simply unavoidable and, unfortunately, they will appear on your credit report. However, it is very important to make sure you rectify any incorrect listings. If you’ve been a victim of fraud then there may be mistakes on your credit report. If this is the case, it is important to get in touch with your credit reporting agency or credit provider in order to rectify the situation.

Get Out Of Debt

The best thing you can do to improve your credit score is to get out of debt. There are lots of debt help options out there, it is just about finding the right one. Debt consolidation loans can be helpful in making repayments easy and all in one place. Having one big repayment instead of multiple small ones takes means you are more likely to make the repayment. Balance transfer credit cards can also be a good option in order to reduce the interest payable. Fulfilling the repayments during the promotional period could save you a chunk of cash. It is important, however, to remember that entering into a debt agreement can have an impact on your credit score.

Get Your Repayments Under Control

It’s important to remember that in Australia your credit report contains both positive and negative information about your credit history. Making repayments when they are due is one of the biggest factors in determining your credit score. If you’re looking to improve your credit rating, then showing that you can make timely repayments on your current credit cards or loans is an excellent place to start.

Don’t Make Lots Of Credit Applications

Making lots of credit applications over a short period of time is not a good idea if you are looking to improve your credit score. Unfortunately, when you make multiple enquiries on a credit card or loan it is recorded on your credit report. This often causes possible lenders to get the impression that you are under financial stress.

Get Help From The Experts

Although there are a variety of different aspects you can take control of all on your own, sometimes we all need a helping hand. There are lots of avenues of support available for people suffering financial hardship or people who need debt help. Financial counsellors can also offer expert advice on how you to get your finances under control.

Rush Credit Repair

Unfortunately, there is no such thing as a ‘rush credit repair’ or ‘credit repair loans’. The way to improve credit is to simply start paying off your debt. The more regular repayments you can make, the better. Obviously, life does get in the way sometimes. So, if you’re looking to improve your credit score but know you will not be able to make a repayment, it is a good idea to get in touch with your lender or credit card company. Often, when given enough notice, you might be able to arrange an alternative repayment schedule. It is important to remember, however, that every lender is different.

Business Credit Repair Companies

Wondering whether a business credit repair company is a real thing. Well, technically, yes they are. Credit repair companies claim to be able to take negative listings off your credit report, however, we suggest that you keep your wits about you. Often, these companies will ask for a significant chunk of cash up front and might not always follow through with what they promise. So, if you are going to use a business credit repair company it is important to do some investigating beforehand. Read more about business credit repair companies here.

Jacaranda Finance Australia

Here at Jacaranda Finance, we are all about being transparent. So, we do our best to offer clear, up-to-date information when it comes to unsecured short-term personal loans. This is why we thought we would give our customers some insight into a new area of the finance industry – credit repair.

These days most people establish or pay off a loan. Some need that instant cash loan to head overseas or a quick unsecured loan to make ends meet between paydays. No matter what your loan is for, sometimes factors out of your control influence your ability to make payments and then, before you know it, there is a default listing against your name. This is why many people are turning to instant unsecured loans to get back on track.

Jacaranda Helps Aussies

For those who have bad credit or are unemployed, quick loans can be a lifesaver. Consequently, companies like Jacaranda Finance are offering short-term unsecured loans to help out at times when you need cash fast. According to Australian law, once you have paid off your loan debt, the lender is obliged to update the listing on your credit file as soon as practicable. What many people fail to realize is a default listing will remain on your credit file for up to five years and subsequently be flagged as a mark on your credit history. So, with that mark on your record, what happens if further down the track you are looking to take out a more substantial personal loan or home loan?

Defaults or negative listings can affect many areas of your life and you may not even know it yet. You might find it harder to rent an apartment or you could end up paying more for car insurance. However, it’s consequences like these that have to lead to an entirely new business model – credit repair. You can search for credit repair on Google and thousands of sites come up promising to wipe your credit history clean. You as borrowers just want the default or defaults gone, so you can have a clean slate and get a new loan for that car you’ve been eyeing off.

However, there are a few things we have unpacked in this article that you must take into account before you rush to a credit repair company and hand over your cash. However, to read more about credit repair services, Jacaranda Finance recommends you visit the Australian Financial Complaints Authority (AFCA) for more information on all queries you may have around credit repair. Additionally, if you have any concerns regarding how this may impact your application for a loan with us, please contact us via our Enquiry Form or call us on 1300 189 823.

Find out how long a credit default could stay on your record and know your credit report!

What is positive credit reporting? Jacaranda has the low down. We’ve even got the hot tips on how you could save on household expenses!

How customers rate Jacaranda

How To Repair Your Credit Rating In Australia Overall rating: 4.8 out of 5 based on 60 reviews.

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Small Personal Loan

Loan Amount

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$300


Maximum
$2,000

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Terms

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12 Months


Maximum
12 Months

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Up to 20% Establishment Fee
+ monthly fee up to 4%

Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.

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$2,100


Maximum
$4,600

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13 Months


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24 Months

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Annual Percentage Rate (APR) starts at 20.56%
Comparison Rate is 20.56% per annum.

This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 20.56%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $555.83 (reducing interest*) = $3955.83 total repayable over 18 months with weekly installments of $50.71.

Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $1081.85 (reducing interest*) = $5981.85 total repayable over 24 months with weekly installments of $57.51

* Reducing interest means that the 20.56% APR is applied to the outstanding balance on a loan. When a loan repayment is made, the loans outstanding balance goes down and the APR is applied to that lower balance. Therefore, the interest component of the loan will constantly reduce (as long as repayments are being made!) - thus it is called reducing interest.
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Large Personal Loan

Loan Amount

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$5,000


Maximum
$10,000

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Terms

Minimum
13 Months


Maximum
36 Months

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Annual Percentage Rate (APR) is 12%
Comparison rate is 19.88% per annum.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $1831.16 (Interest) = $6831.16 total repayable over 18 months with weekly installments of $87.57.

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5041.72 (Interest) = $15041.72 total repayable over 24 months with weekly installments of $144.63.

* Reducing interest means that the 19.88% APR is applied to the outstanding balance on a loan. When a loan repayment is made, the loans outstanding balance goes down and the APR is applied to that lower balance. Therefore, the interest component of the loan will constantly reduce (as long as repayments are being made!) - thus it is called reducing interest.
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