How to Clean Your Credit File

You know for sure that a good credit history is very important especially if you want to keep your eligibility to apply for and obtain loans in the future. By now, you should be aware about ways on how to improve your credit score just like you

should know how credit ratings are eroded. It may not be as simple as you think it is.  If you think your credit record is tainted, you should immediately act to clean it up. If you have defaulted on any loan or made delayed payment on any of your bills, you certainly have incurred negative credit scores. To be sure, it would be advisable if you would get a copy of your credit report. There are organisations that could provide you a copy of your credit report for free within just a few days.

After getting a copy of your credit history, check the accuracy of the details. Tally up all the black marks and make sure there is no error. If you have not delayed in any payment or defaulted in any loan and your credit report says otherwise, you may have been a victim of so-called identity fraud. Or there could just have been discrepancies or errors in keeping your record.

Clear up disputed records

Carefully and thoroughly go through the listed information on your credit report. If a bank or utility company has unfairly and inaccurately listed any overdue account, you should immediately seek correction of such entries. It is your right to demand erring companies to rectify their mistakes so you could instantly clean your credit file.

If the erring company fails to rectify the mistake or if your complaint is taking too long to obtain resolution, you could forward the complaint to the Financial Ombudsman Service or FOS. You could contact the agency through telephone or email. For issues concerning non-banks, refer your problem to the industry ombudsman.

Improve your own credit

If you have a low credit score, you may start improving it immediately. Start earning more positive scores through meeting every repayment on time. The idea is that good record would soon outweigh the bad one. It could help if you would obtain small and short-term loans and try to repay them on or ahead of time.

You may also put all your necessary spendings (petrol groceries, prepaid tickets, and bills payments) on your credit card. Just make sure you pay off the total amount on time each month. To be sure, why not ask your bank to automatically debit your credit card dues from your savings account?

Counselling

Lastly, you could seek and obtain helpful counselling. Try to get in touch with the Australian Financial Counselling and Credit Reform Association. The organisation provides independent and free counselling service to local consumers who are having troubles with their credit ratings. Ask the professionals about other possible and feasible ways to clean your credit file and to improve credit scores.

Andrew Black has been working in the finance industry for the last 3 years, helping people managing their debts. Andrew specialises in credit card debt and bad credit loans

Share |