subject: Simple Ways To Improve Your Credit File [print this page] Are you struggling to obtain a credit card thanks to your credit rating?
Banks are being every more selective about who they grand credit to. And, if you are applying for an instant approval credit card, the chances are that you will need a decent credit history to be approved straight away.
Here are our top four tips for improving your own personal credit rating and improving your chances of getting an instant approval.
1. Find out what your credit file is like
When you apply for a credit card, particularly online, your credit file is one of the most important aspects of your profile that a bank will examine. Your credit file shows a lender exactly how you have managed your loans, cards, mortgages and bank accounts in the past. It also helps them to establish whether you have a good record of paying your commitments.
A bad credit file can be very costly. If you have missed payments on a credit card, been in arrears on your mortgage or missed loan payments then this will adversely affect your credit rating. It often means you fail to obtain an instant approval for a credit card, or that you have to pay higher rates or fees.
Your first step should be to get hold of a copy of your credit file. You can do this for free within ten working days by contacting Veda Advantage at www.mycreditfile.com.au. Only by knowing what is on your credit file will you be able to improve your rating.
2. Make sure the information on file is correct
Once you have a copy of your credit file you should carefully examine all the information it contains. If you think that a bank or other financial institution has unfairly registered an item on your credit file then contact them to challenge this. You are entitled to ask for any incorrect information on your credit file to be removed or corrected.
If you are not happy with the explanation you receive, get in touch with the Banking and Financial Services Ombudsman (http://www.bfso.org.au) to register a complaint.
3. Take steps to improve your credit rating
Once your credit file is correct, you can start the process of improving it. The easiest way to do this is to manage all your credit commitments carefully. Make sure all your repayments are made in full, and on time.
A good way to improve your credit rating is to take out a small instant approval credit card and use it regularly. You should use it for small transactions and pay it off every month. Your credit file will then show that you are capable of responsibly managing credit.
4. Keep in control of your credit file
Once your credit file has been improved, make sure you review it on a regular basis. Obtain a copy of your file every year to ensure that it is correct, accurate and up-to-date.
When you come to apply for an instant approval credit card, you will know that your credit file is as robust as it can be.
