Here's how to improve bad credit scores
To fix bad credit you can take plenty of action to improve your credit score and improve the likelihood of being approved for a loan.
- Check your credit score. Find a copy of your credit report and credit score for free with the Finder app. You'll also receive notifications whenever something changes in your report, so you can always stay on top of your finances. When you receive your score, you will receive information about what is most contributing to your bad credit rating. Check this report regularly for areas in which you can improve.
- Pay your bills on time. When you stay on top of paying your bills and loan repayments, this can contribute to an improved credit score. It shows banks your improved financial discipline. Under Australia's comprehensive reporting system, your credit file contains positive and negative information about your history. So build on the positives and eliminate the negatives!
- Pay off your debt. First check how much you owe and how many sources of debt you have. Try to focus on one at a time and work on a budget to cut back your spending wherever possible to bring your debt under control. Payments of $150 or more that are over 60 days late will stay on your credit report for 5 years, even after you have paid them. If you're struggling to repay your accounts, contact your creditor to discuss an alternative repayment plan to avoid defaulting on your payment.
- Lower your credit card limit. If you have a high limit that you're not using, contact your bank to lower it.
- Avoid making multiple credit applications. Don't make multiple credit applications in a short period of time, as this will lower your credit score and indicate to lenders you're under financial stress. You can use our chance of approval feature on the Finder app to see how likely you are to be approved for a credit card or personal loan, which won't put any dents on your record.
- Seek expert advice. You can contact the National Debt Helpline on 1800 007 007 to find free financial counselling in your area if you feel you need a little more help. Financial counsellors offer independent expert advice on how you can manage your money and eliminate debt.
You can use Finder's guide to credit repair to pick up more tips.
If I pay a default in full will it then be removed from my credit report
Hi,
Thanks for contacting Finder.
I’m afraid that defaults will stay on the file for five years from the time it was listed. Unless, it’s erroneously listed, it’s not possible to remove a default if the five-year period has not been served. So, even if it’s already paid, you may need to wait for 5 years before it will disappear from your file.
Kind Regards,
Faye
I have a Court Summons with an outstanding debt listed. The debt is paid. Can I get this removed therefore increasing my credit score?
Hello Kenny,
Thank you for your comment.
Yes, you can have it removed by contacting the lender or the creditor so they can submit a report to the credit reporting bureau. Another way is to file a dispute with the credit reporting bureau so they can investigate the issue. You can get more details about removing credit report black marks.
Should you wish to have real-time answers to your questions, try our chatbox on the lower right corner of our page.
Regards,
Jhezelyn
Would like to know about my credit score which is in my case it’s most probably not too good. However, how and what can I do to fix it? Cheers. Marie
Hello Marie,
Thank you for sending your inquiry today. :)
We do have a guide that will help you repair your credit report.
If it interests you, please request a free copy of your credit report/score.
Simply add your phone number to get our Finder app and start requesting your credit score.
Alternatively, you can click on the “Continue on web” if you wish not to get your score through the app.
A pop-up window would appear. Click on the “Log in” tab if you already have a Finder account. Click on the “Register” tab if you wish to create a new account.
Once you’re in, you can then request your credit score.
Hope this helps.
Cheers,
Jonathan