Your life hangs in the balance and it all comes down to your Credit Score, a number that dictates whether or not you will be getting that loan you desperately need.
Credit Repair Expert and Ex-Debt Collector Laurence Barlow has stated that a poor credit score is highly detrimental to your financial future, credit enquires and defaults on your credit file from years ago dragging down your overall score, barring you from getting finance when you need it.
“A credit score lower than 755 can really destroy your financial progress, forcing you to put your life on hold while you either wait it out or try to fix your score,” said Mr Barlow.
“Your credit score is a critical number to monitor if you’re a consumer seeking finance since it can drastically influence whether or not you can get credit,” he said.
“Lots of people don’t know what their Credit Score is, or that it even exists, meaning when they get knocked back, they don’t know why.”
“For example, we recently had a client with a good income unable to obtain a loan with reasonable interest rates. She was unaware that her credit was causing lenders to quote much higher than normal rates.”
“You can imagine how shocked she was when we tabled a copy of her credit score and explained how credit providers use that information to quote higher interest rates.”
“After signing up with CreditReboot, she saw a serious improvement in her credit score after two months, and we did clean up the rest of her file.”
“Through her time with us, we were able to get all of her unauthorised enquires and erroneous defaults off of her file, drastically improving her credit score; allowing her to go for a more competitive loan than the one she originally got knocked back from.”
Mr Barlow said that people who were struggling with their Credit Score could do the following;
- Staying where they are: Staying in the same job or living at the same address is a way to stop your Credit Score from dropping, as it shows consistency and commitment; a desirable trait in a loan applicant
- Ordering a Copy of their Credit File: This allows people to see exactly how well they’re doing, and you can get a free copy of your credit file every 12 months.
- Avoid shopping around: Applying online or in-store to a lot of Credit Providers can rack up enquires on your Credit File, dragging down your credit score.
- Remove any Outdated Info: Credit Providers often forget to remove outdated enquires or defaults on consumers credit file. It’s important your alert the Credit Provider and Credit Reporting Body of these mistakes the moment you find them, as they’re hurting your Credit Score.
- Always be on time: Making payments consistently and on time is a good way to improve your credit score, as it shows that you’re never one to be late or behind on your payments.
Mr Barlow asserts that consumers should monitor their credit report to ensure Credit Reporting Bodies and Credit Providers remember to remove enquires and defaults are due to drop off of their file. Credit Providers and Credit Reporting bodies have a vast number of customers; so mistakes are bound to be made.
Equifax (Australia’s largest consumer Credit Reporting body) released late last year, a collection of details that highlighted what affected your credit score, Equifax stating on their website that Adverse Listings and Credit Enquiries do damage your score.
“Your payment history, [the] number of credit enquiries on file, [the] number of credit enquiries in the last month, type of credit requested and shopping for credit, could all affect your credit score,” Equifax said on their website.
Anyone seeking help in improving their credit score who wanted to know more about how the could improve their credit score can do so by going to the CreditReboot site and talking to the staff on live chat at https://www.creditreboot.com.au/.