It is a lot easier to get a new loan or credit card when your credit score is good.
But what can you do if your score is looking worse for wear?
Credit repair can help improve your score. Read on to learn how it works.
Credit repair is a term used to describe the improvement of an individual’s credit report. This is achieved by reviewing your credit report and investigating negative listings that may be affecting your credit score. Credit repair involves attempting to have negative listings removed from your credit report.
If a listing is found to be incorrect, and is successfully removed from your credit report, it will no longer form part of the calculation that determines your credit score. When negative listings are removed, your credit score will improve. You will have a higher chance of having your future loan applications approved, and obtaining a lower interest rate.
If you have the time, you can perform “do it yourself” credit repair, or you can contact a credit repair company to do the work for you. You can get a FREE assessment for credit repair from Debt Negotiators by calling them on 1300 351 008.
Credit repair companies provide a service to assess your credit report, investigate negative listings, and do the work of refuting incorrect negative listings. They act on your behalf and liaise with credit reporting agencies, creditors, and negotiate court proceedings where necessary.
While anyone can perform credit repair, credit repair companies are experts in credit legislation, with established creditor relationships.
It is free to perform credit repair yourself. If you employ a credit repair company to complete credit repair on your behalf, you will be charged a fee.
Before applying for credit repair, research credit repair companies and ask what their fees are, and what service is being provided for the quoted price. It is important that you understand what you are agreeing to pay, before applying for credit repair with a company.
There are a number of steps to complete in the credit repair process:
If you are not satisfied with the response you receive, you can contact the appropriate Ombudsman to make a complaint, via the Australian Securities and Investments Commission (ASIC) website.
You may also want to consider obtaining financial advice before taking any steps to repair your credit.