Bad Credit History

Many credit providers may view you as a high-risk borrower if you have a bad credit history, but it is not the end of the world. Your first order of business should be to get a copy of your credit report and identify areas of improvement. 

GetCreditScore can help you obtain an overview of your credit history in a matter of minutes. We just need you to fill out a quick form, and we can take care of the rest. In addition, our members get exclusive offers on premium credit products and services, including credit cards, personal loans, car loans, home loans, business loans, and insurance policies.

Availing of our services has no impact on your credit score since it is not a hard enquiry. Moreover, we use advanced encryption and identity verification technology to protect your data. So sign up now and figure out how you can fix your bad credit history!

Approximately 506 to 665 is the average Equifax Credit Rating for consumers in Australia. That means anything below that range is considered bad credit. Fortunately, you can find alternative lenders that specialise in bad credit loans. These lenders don’t dismiss applications solely for low credit ratings – they assess credit reports based on individual circumstances. That means they are willing to hear your side of the story behind the decline of your credit score. You just need to demonstrate that your struggles are behind you and that you have made strides in improving your financial standing.

What is credit history and why is it important?

Your credit history contains extensive data about your financial standing and is the basis for your credit score. If you have a bad credit history, it can hinder your ability to take out loans, credit cards, and other financing products and services.

The introduction of the Comprehensive Credit Reporting (CCR) system gives consumers more control over their credit scores. It mandates the inclusion of positive credit information like your credit account history and repayment history on your credit report, giving lenders a clearer picture of your financial standing. You can also use this information to figure out how to improve your score and qualify for better deals.

How can I check my credit history?

Equifax can provide a credit report for you if you have ever applied for credit services. GetCreditScore can help you obtain an overview of this report in a matter of minutes so that you can start reviewing it right away. 

The first thing you should do is check the document for any errors – perhaps charges for a service that you have already cancelled. Unfortunately, these mistakes happen more often than you would think!

If you find a suspicious entry, contact the credit provider listed to address the issue immediately. You should also ensure that your record reflects accurate personal details, including your complete name and current address.

How to fix a bad credit history?

A bad credit history generally contains a string of missed payments, loan defaults, or debt agreements. These elements cause your credit score to decline and hamper your ability to secure competitive terms on credit services. Moreover, traditional credit providers are likely to perceive you as a high-risk borrower if you have a bad credit score, and they may reject your applications outright. 

Nevertheless, there are measures you can take to turn your bad credit rating around slowly but surely:

1. Pay your bills on time

Your repayment history is one of the most glaring aspects of your credit report. It reflects the credit payments over the past two years and highlights any delayed or defaulted payments. However, you can clear these negative marks and show lenders that you are a reliable borrower if you commit to paying your bills on time and in full. You should also make every effort to avoid defaulted payments since they remain on your record for five years and may hurt your rating. Moreover, you can set up direct debits or set calendar reminders to ensure that you never miss a payment. 

2. Minimise your debt-to-credit ratio

You can substantially reduce your debt balances by paying at least double the minimum amount due monthly. You should also work on paying off any outstanding loans and debts. A paid default is always better than an unpaid default!

4. Avoid making consecutive credit applications

An enquiry is added to your credit report every time you apply for credit. If your report indicates that you have been making multiple applications over a short span of time, credit providers may interpret your activity as a sign of financial distress.

5. Check your credit report

Obtain an overview of your personal credit report and identify areas of improvement. This document contains valuable information about the factors contributing to your poor credit score. You should make it a point to perform a self credit check regularly to make sure everything is in order.

GetCreditScore can give you instant access to your credit rating overview. Our registration process takes less than a minute to complete so that you can start evaluating your file as soon as possible.

Take the first step towards achieving a better financial future for yourself. Sign up now and enjoy special offers on premium credit products and services, including credit cards, personal loans, car loans, home loans, business loans, and insurance!

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.