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Want To Repair Your Credit? Check Out These Top Tips
September 4, 2014●
9 minute read●
Looking to repair your credit?
You’re not alone. 73% of Aussies don’t know their credit score. But what happens when you do check it, and you’re confronted with the reality of a not-so-perfect score? Is it really possible to repair your credit? At Jacaranda, we’ve researched for you. Not only are we leaders in online lending, but we know a thing or two about how you can repair your credit score. Keep reading for more information.
If you’ve ever searched for ‘credit repair Australia’ online then you probably already know how many credit repair companies exist. But do they really work? Let’s find out a little more about what a credit repair company really does.
What does it mean to repair your credit in Australia?
According to Australian law, once you have paid off the debt, the lender must update the listing on your credit file. What many people fail to realise is a default payment will remain on your credit file for five up to seven years.
What 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. You might find it harder to rent an apartment, or you could end up paying more for car insurance.
You can search for credit repair on Google, and thousands of sites come up promising to wipe your credit history clean. However, before you rush to a credit repair company and hand over your cash, there are a few things you should take into account. Can credit repair companies help? Let’s find out.
What does a credit repair company do?
These companies call themselves anything from ‘credit repair’, ‘credit fix’ or ‘debt solution specialists’. Most will make claims that they can improve your credit report and remove default listings. What you need to know is that, in most cases, the information in your credit history cannot be removed unless it is proven to be wrong.
If you are going to use a credit repair company we recommend you do some serious research. Many companies promise the world, however, significantly underdeliver. It is also essential to keep in mind what it might cost to employ a credit repair agency. In most cases, it can prove to be quite pricey!
Keep in mind that credit reporting agencies can look into getting defaults removed for free, whereas ‘credit repair companies’ tend to charge large fees.
How much does it cost to repair your credit?
For a fee often upward of $900 a credit repair company will contact your lender. They may offer a generic explanation that relates to your personal situation (loss of income, death in the family, breakdown of relationship etc.) to justify for the default to be removed from your credit report. Keep in mind that, in a lot of cases, you might just be paying for a phone call. Make sure that you receive some assurance from the credit repair company before you proceed.
What can be removed from my credit report?
A default is updated to either paid or settled depending on whether you pay the debt in full or for a discount. However, navigating the map of credit reports can be tricky so that you may be wondering ‘does credit repair really work?’ It’s a question that has been asked time and time again, and the answer really comes down to what defaults are listed on your credit report. Credit repair can work to remove certain negative items from your credit report. Keep in mind, however, that it does not work for every negative mark on your credit report, and it definitely isn’t an instantaneous fix.
In short, credit repair is just the process of disputing items on your credit report that are an unfair or inaccurate representation of your financial history. It is essential to state that credit repair is not a way to remove legitimate debts or marks on your credit score. Credit bureaus will not investigate disputes that are deemed to be ‘frivolous’.
You may be able to remove the following items from your credit report:
- Erroneous items: Items that are flat out incorrect are the easiest to dispute. These are called erroneous items and covers errors like spelling mistakes or misreported amounts. These errors are usually corrected quickly and without too much hassle.
- Outdated items: Items on your credit report that are outdated are also usually relatively easy to fix. Most negative marks on your credit score are only allowed to remain there for a set amount of time before they have to be removed. If an item is overdue or outdated, it is usually pretty simple to remove.
- Fraudulent items: If you have fallen victim to identity theft, then you must check your credit report as fraudulent entries may be present. It is also essential to report any cases of identity theft straight away.
- Unsupported items: Unsubstantiated items are literally just items that cannot be supported by any information. If the credit bureau is unable to prove that the debt really belongs to you, then they will be forced to remove the item.
How to repair your credit score yourself
You can get a free copy of your credit report from Dun & Bradstreet or Veda. If you decide anything on the report is inaccurate, you can take action yourself.
Instead of letting the defaults slide and dealing with them later, why not contact your lender and let them know the situation? Many lenders will sympathise with borrowers, and if it is within their power, they will try and help the consumer, especially if they could get back the loaned money.
If for some reason your lender is unable to assist you, it is within a borrower’s rights to contact the Australian Financial Complaints Authority directly, and it is free of charge, you fill out a form and go from there.
Do you need to repair your credit for a loan?
Big banks may say ‘no’ to bad credit, so people believe they need to ‘fix their credit’ before applying for a loan. However, if you opt for an online lender, they can look at more than just your credit score. What this means is, depending on the type of loan and the amount you want to borrow, relying on a company to ‘repair your credit’ may be an unnecessary first step.
Getting a loan with poor credit
You may be eligible for a poor or bad credit loan from Jacaranda Finance.
Jacaranda Finance is the lender more Aussies turn to when they need fast, reliable and safe cash. We encourage anyone to apply, even with less-than-perfect credit. Jacaranda could approve a loan from $300 and $10,000 without the hassle of a lengthy application or drawn-out loan process. The best part is, you can apply for a personal loan anytime, anywhere. You won’t even need to leave the comfort of your living room. All you will need to apply is an internet connection – you could also apply using your smartphone. Gone are the days of spending hours and hours in line at the bank, Jacaranda is revolutionising the way Aussies do online lending.
Am I eligible to apply?
Are you wondering who can apply for a small loan with Jacaranda? The good news is, we like to keep things as simple as possible. All applicants must:
- Be an Australian citizen or permanent resident;
- Be 18 years of age or above;
- Have received a regular income into a personal bank account for at least the last 90 days prior;
- Have a direct contact number and email address.
If you meet these requirements, then you’re ready to apply, so just scroll up and begin your application using our loan calculator.
How can I get a loan fast?
Wondering how you can apply for a quick loan? Here’s what you’ll need to do:
Use the loan calculator at the top of the page to select a loan amount and repayment period that you are happy with.
Fill out the form
We will just need to get a few essential details from you to conduct a thorough and fair assessment. Our 100% online application form could only take you a few minutes to complete. If you submit your application during AEST business hours, we will do our best to get back to you with an outcome in just 60 minutes.
We assess your loan
Our team will assess your loan application and do their best to match you with a suitable loan product. Keep in mind that our team are proud to be responsible lenders. We will never approve a loan for an individual who can not afford to make the repayments.
Sign your agreement
If your application has been successful, we’ll send over an agreement for you to review and sign. The Jacaranda team encourages all borrowers to read through their agreement and make themselves aware of any fees or charges that could incur for payment defaults. Get in touch with our team if you have any questions regarding the terms and conditions of your loan agreement.
Get your cash
As soon as we receive a signed copy of your loan agreement, we’ll transfer your funds straight to your bank. Thanks to instant banking, you could have the money in your account and ready to use in just 60 seconds*.
Ready to apply?
Great! Then just scroll up and use our loan calculator to select how much you wish to borrow and for how long. Once you are happy with your proposed loan terms, hit the ‘Apply Now’ button.
*most approved applicants have their money in their bank account and ready to use within 60 seconds once they have accepted their digital contract.
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Written by Jacaranda Team