subject: The Why And How Of Credit Repair [print this page] One thing that many Australians need is some kind of credit repair. When we have debt it is not necessarily a home mortgage, but can be a car loan or just debt that is racked up on the credit card. In a society where spending money is advertised on TV and radio day and night, most of us spend too freely when we are young and end up in debt. And often we find it impossible to get out of that debt.
It is quite possible that we end up with debt that has never been paid, or with constant late payments that mount up and even have high interest rates, making the balance ever higher. This means that when we go to get a loan for a house or a car, we are refused.
Experts tell us that there is good debt and bad debt. Good debt is a loan for a house something that will increase in value and provide us with a valuable asset. Bad debt is credit card or store card debt with high interest rates that does not give us anything except perhaps a headache. Bad debt is something to be avoided at all costs; if we have it, we should certainly work to get rid of it as soon as possible.
It is not always easy to fix bad credit, but it can be done. One problem is that many people do not realise they have a bad credit rating. If you have ever made late payments and have credit card debt, it is wise to apply for your credit rating, especially if you think that you may soon want to apply for a house loan.
When it comes to credit file repair you first have to send away for your credit rating. This can be done online and it is free if you dont mind waiting a week or two for it. Once you have it, you need to read it over thoroughly and check everything in case of mistakes. If these mistakes cant be substantiated they should be reported to the credit reporting agency so the file can be amended.
If you have numerous debts that you find it hard to keep track of and all have high interest attached, a debt consolidation loan could be the answer. One repayment at a low interest rate is much easier to handle. You can also put your debt repayments on auto pilot from your bank account so that you dont keep forgetting to pay them.
