Don’t be fooled by anyone offering a financial miracle. Repairing your bad credit score is not an overnight fix. Improving a bad credit score is something like losing weight. It takes time, some discipline and a few carefully considered choices along the way.

 

But it doesn’t take a long time. Depending on your level of financial activity and debt you could improve your credit score in just a few months. Be wary of anyone who tells you otherwise.  Making irresponsible decisions in the hopes of a quick-fix can actually lead to more financial problems.

 

So, the best advice to follow is to begin to responsibly manage your credit score over time. If you haven’t done this you might need to repair your credit history first. Follow the tips below to do so. They are based on the criteria and data used to calculate your credit score.

 

 

 

The First Steps You Can Take To Raise Your Credit Score: TODAY

 

Setup Payment Reminders

Lenders are mainly concerned with whether you can make repayments on loan. So it goes without saying that making all of your payments on time is your number one priority. Your history of payments is also one of the main factors used in calculating your credit score. Therefore, making your payments on time goes a long way to improving and solidifying your good credit score.

 

Unless you’re having financial difficulty and can’t afford your repayments, there’s not much excuse for missing your payments. There are simple solutions, such as making your payment due dates on a calendar. Or you can go for the more advanced option by making an alert on your smartphone. Some banks and lenders even offer a service to text message or email you before your payments are due.

 

But the most successful option that requires the least memory power is using your online banking to set up automatic payments. Most banks offer internet banking facilities these days and they may even be willing to help you set it up. That way you know that your payments will always be covered as they are automatically debited from your bank account on the required day. Be careful using this method with credit cards though.  It is wise to pay off your credit cards as quickly as possible. As the balance of a credit card tends to vary you may end up paying extra interest.

 

 

 

Lower The Amount Of Debt You Owe

Of course this is easier said than done, but everything is possible when you put your mind to it!

 

Start by identifying your most expensive debt in terms of loan amount, interest rate, and fees or charges. Then identify your income and calculate your living budget.  Anything left over is the amount of available cash you have to make repayments on ALL of your loans.

 

You should prioritize the most expensive loans first, giving them the largest payments possible. Then step it down for each consecutive loan as they get less ‘expensive’. Make sure they are all being repaid at the minimum requirement.

 

The main aim is to reduce the amount you owe to the best of your ability. It will also reduce the amount of interest your loans cost you and help to pay them off as quickly as possible. 

 

 

 

 

 

 

 

Recent Payment History Is SO Important!

Your payment history has the greatest effect on improving your bad credit credit score. While past problems like missed payments or late payments can’t be erased, you can make your recent credit history look stellar with the following tips. Remember: consistency is key!

 

– Make sure you pay all of your bills on time. Aim to never be late with a payment. Any late payments, even by a few days, are not good for people with bad credit. This problem is compounded if your debt is handed over to a collection agency. This all stays on your credit file.

 

– OK, so you recently missed a payment. It’s time to make that payment. Then keep your payments current. The longer you wait, the worse it can look. So if you have the option its best not to miss any payments at all. Remember, older credit problems have less importance placed on them in light of recent performance. So focus on the ‘now’ by making your recent payment history shine through developing a pattern of good payment behaviour.

 

– This is a big one – don’t think that if you pay off a collection debt and think that it will be wiped from your credit history. It will stay on your report for 7 years. This is not forever, but it is long enough that it could make it difficult for you to get a loan when you need it most.

 

– Getting some expert advice on managing your finances won’t hurt your credit score. In fact it will probably help you. At Hoolu we work with all kinds of finance every day for all kinds of credit scores. So we know the in’s and out’s of getting helping our customers get bad credit finance in Australia! If you’d like to chat fill out the form at the end of the article of visit our contact page – click here.

 

 

 

Amounts Of Debt You Owe: Tips To Keep In Mind – Always!

These are the ones to live by. Having some financial discipline will help you go a long way to keep in mind can be easier to clean up than payment history, but that requires financial discipline and understanding the tips below.

 

– Keep balances low on credit cards and other revolving credit: high outstanding debt can affect a credit score.

 

– Pay off debt rather than moving it around: the most effective way to improve your credit scores in this area is by paying down your revolving (credit cards) debt. In fact, owing the same amount but having fewer open accounts may lower your scores.

 

– Don’t close unused credit cards as a short-term strategy to raise your scores.

 

– Don’t open a number of new credit cards that you don’t need, just to increase your available credit: this approach could backfire and actually lower your credit scores.

 

 

 

Your Credit History – Past & Present – Matters!

Make sure that you limit the number of accounts you open. Aim to minimise the amount of open accounts to only what is necessary.

 

If you have been working on improving your finances for a short time this can ‘water down’ your credit history. New accounts don’t have a lot of payment history behind them. So, choose not to open those new accounts and instead focus on improving the ones you already have.

 

Opening many accounts quickly for no credibly good reason can also make you look risky borrower. This is a red flag to lenders as the assumption is that you are borrowing over what you can financially afford. It might also appear like you are borrowing for unnecessary reasons and therefore being financially irresponsible.

 

 

Tips For Getting New Credit

– Shop around before you apply. Or use a finance broker like Hoolu who has access to over 35+ different lenders. When you apply for a loan this application is recorded on your credit history. So be sure to know what you’re in for and avoid applying in the hopes of getting a good deal.

 

– Follow the above advice and boost your credit history. If you open some accounts and then pay off the debt in a timely and responsible manner this will look great for your recent credit history. Remember – you want to look like a good candidate for a loan because you are able to reliably make your repayments.

 

– Use your credit score as motivation! It won’t do any harm to check your credit score. Just be sure to order it through a reporting agency or organisation that is authorised to issue credit history reports. Then you can personally see what you need to do to improve your bad credit history situation. Or feel free to ask us for some advice!

 

 

 

Be Careful With How YOU Use Credit!

– Don’t apply for new accounts hoping it’ll raise your credit score by having a different credit ‘mix’. It won’t necessarily raise your credit score at all unless you manage them all correctly. It’s best to just stick to what you need and can handle financially.

 

– Your credit cards can be a benefit and a problem – use them wisely. Credit cards and installment loans in general can be a benefit to your credit score if you make timely repayments on outstanding balances.  Someone who has shown they can manage credit cards properly will also appear to be a better candidate for any loan as they have shown they can make repayments.

 

– You can’t close an account and magic your credit score problems away. Remember, everything shows up on your credit file and might even be part of your current credit score calculation. 

 

 

 

The Number One Thing To Remember:

You CAN repair your credit score with some thinking, careful planning, financial self-control and a few of our handy tips in this article.

 

That number one thing is: AIM FOR CONSISTENCY! You want to identify any past problems and attend to them, set some good habits, and then maintain these good habits from then on. Th reward will be a good credit score and ease of borrowing when you want to get a loan for something important like a house, medical expenses, to start a business, or even get a new car.

 

 

 

How Can Hoolu Help?

Helping people with bad credit scores is our specialty! As a finance broker who works with over 35+ lenders, we have a wide knowledge of the available options. This means we can use our expertise to match our customers with the perfect loan for their needs and situation. This usually results in a better deal for the customer and smiles all around! Get in touch today to discuss your next loan – click here.

 

And if you need a new car, check out our  awesome 24 Hour Used Car Finance option. Apply in the morning and drive away the same day!

 

 

 

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HOW TO: Get Your Next Car Loan Approved

 

 

 

 

 

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